Multiple Choice

1. The most commercially influential demographic group in history is _____.

a. generation X

b. baby boomers

c. generation Y

d. seniors

The current marketing environment has a tendency to turn back the clock to simpler times. What has this yearning produced?

a. massive nostalgia wave

b. massive nutrition wave

c. massive exercise wave

d. massive music wave

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2. _____ is perhaps the company that has been most successful in riding the nostalgia wave.

a. Capital Records

b. Ovaltine

c. Volkswagen

d. Levi Strauss

3. Most trend analysts believe that the nostalgia craze/wave will _____ as the baby boomers continue to mature.

a. decline

b. slow

c. disappear

d. grow

4. Jamie Bestowitcz is researching the factors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers. What is Jamie researching?

a. the marketing environment

b. strategic planning

c. target markets

d. none of the above

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5. More than any other group in the company, marketers must be the _____ and _____.

a. mass merchandisers; opportunity seekers

b. trend trackers; mass merchandisers

c. most skilled; trend trackers

d. trend trackers; opportunity seekers

6. You are directed to study the factors that are close to the company that affect its ability to serve its customers – the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. What are you studying?

a. the macroenvironment

b. the microenvironment

c. the marketing environment

d. the global environment

7. You are directed to study the factors that are larger societal forces that affect your company – demographic, economic, natural, technological, political, and cultural.

What are you studying?

a. the macroenvironment

b. the microenvironment

c. the marketing environment

d. the global environment

8. All of the groups within a company are called the _____.

a. culture

b. diversity

c. internal environment

d. climate

9. Which of the following do suppliers not provide marketers within your firm?

a. resources to produce products and services

b. insight into trends and competitors

c. partners in creating and delivering customer value

d. the funding for your paychecks

10. LandPort Transportation and Omega Warehousing help distribute the goods your company sells. The two businesses are examples of _____.

a. resellers

b. marketing services agencies

c. marketing intermediaries

d. physical distribution firms

11. These firms help companies to stock and move goods from their points of origin to their destinations.

a. financial intermediaries

b. physical distribution firms

c. marketing service firms

d. resellers

12. Banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods and services are referred to as _____.

a. financial intermediaries

b. physical distribution firms

c. marketing service firms

d. resellers

13. Currently, you are employed by a firm that conducts marketing research and creates ads for other companies that help them target and promote their products to the right markets. For whom are you employed?

a. financial intermediary

b. physical distribution firm

c. marketing service firm

d. reseller

14. Percy Originals caters to a market of individuals and households that buys goods and services for personal consumption. What do we call this market?

a. business

b. reseller

c. government

d. consumer

15. Name the market that buys goods and services for further processing or for use in the production process.

a. business

b. reseller

c. wholesale

d. consumer

16. Rachel Patino works for a wholesale company called Distributors Unlimited. She is responsible for buying and selling goods at a profit to small retailers. What is her market?

a. business

b. reseller

c. wholesale

d. consumer

17. A company’s marketing environment includes various _____, which consists of any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives.

a. teams

b. audiences

c. markets

d. publics

18. This type of public is a radio station that carries news, features, and editorial opinions about your area. What is it?

a. financial

b. media

c. citizen-action

d. local

19. A consumer organization, environmental group, and minority group have challenged your firm’s stand on a local issue. This is the _____ public.

a. general

b. local

c. government

d. citizen-action

20. Your marketing environment is currently researching the size, density, location, age, and occupations of your target market. What is this environment?

a. demographic

b. psychographic

c. VALS

d. geographic

21. Statisticians have projected the world’s population to reach _____ billion by the year 2025.

a. 6.5

b. 6.9

c. 7.5

d. 7.9

22. The three largest age groups in America are the baby boomers, generation X, and _____.

a. seniors

b. generation Y

c. teens

d. toddlers

23. You distribute coupons to every household in America. Sooner or later, you will reach all ___ million people in this country.

a. 267

b. 277

c. 287

d. 297

24. Research has shown that the most important demographic trend in the United States is the _____.

a. changing age structure of the population

b. mobility of people

c. slowing birth rate

d. increase in professional jobs

25. Some baby boomers are referred to as “DINKs.” What does this stand for?

a. dependable income, no-kids couple

b. don’t work, intelligent, no-kicks

c. dual-income, no-kids couple

d. none of the above

26. Baby boomers were born between the years 1946 and _____.

a. 1954

b. 1960

c. 1964

d. 1970

27. This demographic age group is approaching life with a new stability and reasonableness in the way they live, think, eat, and spend. They are _____.

a. generation X

b. generation Y

c. baby busters

d. baby boomers

28. Which group buys a lot of sweaters, boots, electronics, cars, and computers?

a. generation X

b. generation Y

c. baby boomers

d. all of the above

29. This group shares new cultural concerns, cares about the environment, and responds favorably to socially responsible companies. Who are they?

a. generation X

b. generation Y

c. generation Z

d. baby boomers

30. Who are the echo boomers?

a. generation X

b. generation Y

c. generation Z

d. baby boomers

31. This group has created large kid and teen markets. Who are they?

a. generation X

b. generation Y

c. generation Z

d. baby boomers

32. Recently you read a marketing research report that mentioned ____ has (have) utter fluency and comfort with computer, digital, and Internet technology.

a. generation X

b. generation Y

c. generation Z

d. baby boomers

33. Defining people by their birth date may be less effective than segmenting them by their _____ or ____.

a. income; occupation

b. lifestyle; occupation

c. lifestyle; life stage

d. occupation; life stage

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34. It is interesting to note that about _____ percent of American households contain married couples with children.

a. 24

b. 28

c. 32

d. 34

35. The three groups of baby boomers include leading, _____, and trailing.

a. core

b. general

c. secondary

d. central

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36. _____ households are now growing faster than _____ households.

a. Traditional; nontraditional

b. Large; traditional

c. Nontraditional; smaller

d. Nontraditional; traditional

37. In 1950, women made up 30 percent of the workforce; now they make up _____.

a. 35 percent

b. 40 percent

c. 43 percent

d. 46 percent

38. Americans are very mobile. Over the past two decades, the U.S. population has shifted toward the _____ states.

a. Midwest

b. western

c. sunbelt

d. southeastern

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39. Within given regions, the population is moving from large cities to the _____.

a. smaller cities

b. rural areas

c. foreign countries

d. suburbs

40. Nearly 40 million Americans are working out of their homes with electronic

conveniences. They are called the _____ market.

a. telecommuters

b. SOHO

c. mobile

d. work-at-home

41. Population shifts interest marketers because people in different regions _____ differently.

a. eat

b. think

c. buy

d. act

42. Facts For You research firm has just released a report that one of these groups of workers has declined during the last 20 years. Which one is it?

a. white collar

b. blue collar

c. service

d. unemployed

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43. Marketers need to know that almost everyone in this country is a native. Which country is it?

a. China

b. Bolivia

c. Japan

d. Korea

44. Because of increased _____, Americans will demand higher quality products, books, magazines, travel, personal computers, and Internet services.

a. income

b. family size

c. education

d. none of the above

45. It is important for marketers to know that the _____ population growth is 12 times greater than the Caucasian growth rate.

a. Hispanic

b. Ethnic

c. Asian

d. African American

46. Most large companies know they must now target specially designed _____ and _____ to ethnic groups in the United States.

a. advertising; services

b. services; promotions

c. products; promotions

d. services; labeling

47. Members of this group are more likely than the general population to have professional jobs, own a vacation home, own a notebook computer, and own individual stocks.

a. yuppies

b. gays and lesbians

c. baby boomers

d. echo boomers

48. This group of Americans totals 54 million. Who are they?

a. baby boomers

b. people born in America

c. people with disabilities

49. Which economic group offers few market opportunities?

a. subsistence

b. second-world

c. industrial

d. industrial-technical

50. The _____ environment consists of factors that affect consumer purchasing power and spending patterns.

a. social-cultural

b. political-legal

c. technological

d. economic

51. During the 1980s, American consumers fell into a(n) _____ frenzy that may never be equaled again in our time.

a. debt

b. consumption

c. unemployment

d. spending

52. Marketers would do well to take heed of the fact that this group is somewhat careful about its spending but can still afford the good life some of the time.

a. Lower class

b. lower-middle class

c. middle class

d. upper class

53. Since money is tight for most Americans, marketers must strike a balance between product quality and price called _____.

a. value marketing

b. lifestyle marketing

c. income distribution marketing

d. satisfaction marketing

54. Find the group of expenses that use up most household income.

a. food, housing, retirement planning

b. housing, insurance, taxes

c. food, housing, transportation

d. housing, taxes, transportation

55. Ernst Engel’s laws generally have been supported by recent studies. He discovered that as family income rises, the percentage spent on _____ declines and the percentage spent on _____ remains about constant.

a. food; clothing

b. clothing; recreation/entertainment

c. food; transportation

d. food; housing

56. One of the major concerns for marketers about the natural environment is the _____.

a. number of protestors against misuse

b. shortages of raw materials

c. increases in recycling

57. The natural resources that are needed as inputs by marketers or that are affected by marketing activities are referred to as the _____.

a. raw material market

b. natural environment

c. endangered environment

d. green movement

58. As a marketer of pesticides, you should be concerned about all of the following natural environment trends mentioned in your text except _____.

a. shortages of raw materials

b. increased pollution

c. increased government intervention

d. d; government subsidies

59. What movement has spawned the marketer’s awareness of environmentally sustainable strategies?

a. EPA

b. black market

c. green movement

d. deregulation

60. Can you find the most likely dramatic force shaping the marketer’s destiny?

a. technological environment

b. natural environment

c. legal-political environment

d. deregulation

61. New technologies create new opportunities and new _____.

a. products

b. services

c. markets

d. means of financing purchases

62. This country leads the world in research and development spending. This aids marketers in developing new products for market segments.

a. England

b. Germany

c. Brazil

d. United States

63. Marketers are aware of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. We call this the _____ environment.

a. social-legal

b. legal-cultural

c. political

d. legal-technological

64. Even the most liberal advocates of free-market economies agree that the system works best with _____.

a. medium regulation

b. maximum regulation

c. occasional regulation

d. at least some regulation

65. As marketing manager for Laser Industries, you should be aware that legislation affecting business around the world will continue to _____.

a. exist

b. increase

c. remain steady

d. decrease

66. Business legislation has been created for three basic reasons: to protect companies from each other, to protect consumers, and to _____.

a. protect the interests of society

b. regulate prices

c. increase world trade

d. regulate monopolies

67. The reason business regulation exists to protect the interests of society is to limit _____.

a. businesses from harming each other

b. unfair business practices

c. unrestrained business behavior

d. monopolistic competition

68. International marketers will encounter the most business legislation in what country?

a. Canada

b. Russia

c. China

d. United States

69. Marketers will encounter legislation to regulate business activity in the United States at which of these levels?

a. local and state

b. national

c. international

d. all of the above

70. The recent rash of business scandals and increased concerns about the environment have created fresh interest in the issues of _____ and _____.

a. ethics; promotion responsibility

b. ethics; social responsibility

c. finances; employee discrimination

d. management ethics; insider trading

71. The primary concern with the boom in e-commerce and Internet marketing is _____.

a. pornography

b. ripoffs

c. privacy

d. ethics

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72. A society’s basic values, perceptions, preferences, and behaviors are found in its _____ environment.

a. social

b. cultural

c. social-cultural

d. cultural-economic

73. Marketers must understand that a society’s core beliefs and values have a high degree of _____.

a. persistence

b. rigidity

c. similarity

d. ethnocentrism

74. Your company is making negotiations to enter basic markets in Lower Albania. You have discovered that _____ beliefs and values are more open to change in this country.

a. simple

b. secondary

c. primary

d. core

75. The Yankelovich model maintains that the decade drives for the 2000s will come primarily from the _____ and the _____.

a. echo boomers; baby boomers

b. generation Xers; generation Yers

c. baby boomers; generation Xers

d. none of the above

76. During the 2000s, baby boomers will be driven by all of the following except one.

a. adventure

b. smarts

c. intergenerational support

d. retreating

77. During the 2000s, gen Xers will be driven by which of the following factors?

a. redefining the good life

b. new rituals

c. cutting and pasting

d. all of the above

78. As contrasted with the “me” society during the 1980s, the new consumers are adopting more _____ behaviors and ambitions.

a. family

b. conservative

c. liberal

d. middle-of-the road

79. Studies suggest a bright future for products and services that serve _____ needs and provide real _____.

a. emotional; excitement

b. basic; wants

c. basic; value

d. existing; value

80. Marketers have noticed a shift away from the “me” society to the “_____” society.

a. them

b. we

c. new

d. future

81. Today’s employees tend to be less loyal to and more _____ of employers.

a. trustful

b. respectful

c. ashamed

d. distrustful

82. Since September 11, many marketers have taken advantage of increased _____ in Americans.

a. loyalty

b. patriotism

c. distrust

d. foreign intolerance

83. People’s orientation to their society influences their attitudes toward the marketplace and their consumption _____.

a. desires

b. needs

c. patterns

d. wants

84. Marketers have observed from research that consumers are involved in more camping, hiking, boating, fishing, and other outdoor activities because of their _____.

a. love of nature

b. awareness of nature

c. need for exercise

d. none of the above

85. Consumers’ love of nature has led to a $25 billion industry supplying _____ and _____ products to a growing market.

a. natural; low-priced

b. organic; healthy

c. natural; organic

d. organic; weight-loss

86. Some experts explain that Americans are concerned with the meaning of life and issues of the soul and spirit and are on a _____ journey that marketers need to envision.

a. religious

b. philosophical

c. eternal

d. spiritual

87. Individuals are bringing their spiritual awareness to the _____ they buy.

a. products

b. styles

c. brands

d. benefits

88. Marketers can take _____ by taking aggressive action to affect the publics and forces in their marketing environments.

a. an environmental perspective

b. an environmental management perspective

c. a natural perspective

d. a natural management perspective

89. Firms that take an environmental management perspective will hire ____ to influence legislation affecting their industries to their advantage.

a. mediators

b. lobbyists

c. negotiators

d. (politicians

True – False

90. Baby boomers comprise the most commercially influential demographic group in history.

(True

91. The yearning caused by “millennial fever” is a greater desire for advanced electronic technology.

;

92. Today’s marketers must be good at customer relationship management and partner relationship management in order to connect effectively with customers, others in the company, and external partners.

;

93. When your marketing manager, Suzie Kwan, discussed factors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers, you knew that she was talking about the external marketing concept.

94. Boz Foster, owner of the 21-store chain of Boz Cycles, explained to the store managers at a recent sales meeting that marketers, more than any other group in the company, must be the trend trackers and opportunity seekers. You believe this to be a true statement.

95. The microenvironment consists of the larger societal forces that affect the microenvironment, such as demographic, economic, political, and cultural.

96. The macroenvironment consists of the factors close to the company that affect its ability to service its customers, such as suppliers, customer markets, competitors, and publics.

97. Your accounting department must measure revenues and costs to help the marketing department know how well it is achieving its objectives.

98. Trudie Jones works for a firm that is a distribution channel member that helps the company find customers or make sales to them. Trudie works for a reseller.

99. Marketing research firms, advertising agencies, media firms, and marketing consulting firms are referred to as marketing services agencies.

As an employee of Bonkers Enterprises, you market wild and crazy games for teens to play at parties. You work in the business market.

100. Today’s marketers recognize the importance of working with their intermediaries as channels through which they sell their products rather than as mere partners.

101. No single competitive marketing strategy is best for all companies.

;

102. Consumer organizations such as environmental and minority groups may question a company’s marketing decisions. This type of public is called the local public.(

103. The reason the demographic environment is of major interest to marketers is because it involves people, and people make up markets.

(If the world were reduced to a village of 1,000 people, the cross-representative sample would include 52 North Americans, 64 people who would speak Spanish, and 329 Christians, and half would be immunized against infections.

104. The single most important demographic trend in the United States that marketers should understand is the changing family structure.

105. It is important to note that as baby boomers reach their peak earning and spending years, they become markets for high-ticket items.

106. Gen Yers buy a lot of products including cosmetics, cars, fast food, sweaters, boots, electronics, mountain bikes, and computers.

107. By the year 2010, the Gen Xers will take over the baby boomers as a primary market for almost every product category.

108. Marketers must increasingly consider the special needs of nontraditional households because they are now growing more rapidly than traditional households.

109. A reason that chain stores and franchise restaurants have done well in the United States is because the 21 percent of the population that is mobile can buy familiar products wherever they go.

110. The American workforce today is better educated and more white collar.

111. We can learn from the advertising and promotion campaigns of most large companies that emphasizing community and family is important.

112. Companies in several industries are now waking up to the needs and potential of the gay and lesbian segment.

113. The gay and lesbian market represents 54 million people and almost $1 trillion in annual spending power. It is larger than African Americans or Hispanics.(

114. Marketers realize there is some, though limited, opportunity in this economy that consumes most of their own agricultural and industrial output. It is called a third world country.

115. The marketing department at U.S. FoodStores just released a report that most household income is used up in purchasing food, housing, and transportation.

116. The significant trends in the natural environment include shortages of raw materials, increased pollution, and decreased government intervention.

117. Significant reasons for business legislation to be enacted include protecting the interests of society, protecting consumers, and protecting companies from each other.

118. The difference in the cultural environment between core values/beliefs and secondary ones is that the former are more open to change.

119. When firms take aggressive action to affect the publics and forces in their marketing environment, they are taking an environmental management perspective.

Essay

120. Provide an overview of what marketers will face during the new millennium.

121. Who are the major players in a company’s microenvironment?

122. What goes into a company’s macroenvironment?

123. Describe important factors in the marketing environment.

.

124. Differentiate between the basic marketing intermediaries.

125. Distinguish among the five types of customer markets.

126. What can marketers learn from demography?

127. Who are the five major submarkets in the United States? What is the major significance of the markets?

128. What steps is the government taking to regulate the political environment?