Bus 346 Marketing – Chapter 5 – Flashcards
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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 A. avoid cognitive dissonance. B. implement just-in-time marketing promotions. C. identify potential opportunities. D. avoid the need to understand regional culture. E. achieve cost savings.
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C - identify potential opportunities Close attention to the marketing environment and customer needs is one of the best sources of opportunities.
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The centerpiece of the marketing environment analysis framework is A. green marketing. B. corporate partners. C. culture. D. competitive intelligence. E. consumers.
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E. Consumers The consumer is the center of all marketing activities.
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A firm's macroenvironment includes all of the following EXCEPT A. competition. B. culture. C. demographics. D. economics. E. political/legal issues.
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A. competition Competition is part of the immediate environment, not the macroenvironment.
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The center of all marketing efforts is A. profits. B. the consumer. C. corporate social responsibility. D. top management. E. the firm.
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B. the consumer The consumer should be at the center of all marketing activities.
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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 A. profits. B. her target customers. C. artistic social responsibility. D. competing art galleries. E. the arts movement.
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B. her target market Frederica's customers should be at the center of all her marketing activities.
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One of the goals of value-based marketing is A. to provide the greatest value for the least profit. B. to sell products for the highest possible price. C. to offer greater value than competitors offer. D. to determine the value of the brand. E. to sell to all consumers, regardless of their needs.
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C. to offer greater value than competitors offer. Value-based marketing has to do with offering the greatest possible value to consumers, and greater than competitors offer.
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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 A. to value each person in the organization. B. for each generational cohort. C. to avoid cultural clashes. D. from a consumer's point of view. E. to sensitize organization members to ethical values.
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D. from a consumer's point of view. It is the consumer's perception of value that matters, so the firm's plans must be considered from the consumer's point of view.
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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. A. ethnic background B. needs, wants, and ability to purchase C. culture D. just-in-time processes E. demographics
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B. needs, wants, and ability to purchase The firm must continually scan the environment, because consumers' wants and needs are not static.
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Select the statement that best describes the key traits of Generation Y. A. This generation puts a strong emphasis on work/life balance, and some are technologically savvy. B. This generation mostly uses the Internet for the purposes of checking e-mail, the news, and the weather. C. This generation focuses on health care and wellness services. D. This generation was the first generation of latchkey children. E. This generation—including its oldest members—has had access to the Internet for their entire lives.
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B. This generation puts a strong emphasis on work/life balance, and some are technologically savvy. Generation Y puts a strong emphasis on work/life balance. Its youngest members have had access to the Internet for their entire lives, but this is not true of older members of the generation.
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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? A. time-poor society B. greener consumption C. health and wellness D. privacy concerns E. tech savvy
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A. time-poor society The time-poor society refers to consumers looking to find short cuts to maximize their time.
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When you register your telephone number with the Do Not Call Registry, you are responding to a need for A. privacy. B. enhanced information flow. C. lower phone bills. D. marketing contact. E. tactical communication skills.
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A. privacy. Privacy is a major concern for consumers, and the Federal Trade Commission is responding by trying to protect consumers against unwanted telephone solicitations.
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In the immediate marketing environment, the first factor that affects the consumer is A. demographics. B. cultural values. C. social trends. D. the firm itself. E. technological advances. The components of the immediate environment are the firm, its competitors, and its corporate partners.
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D. the firm itself. The components of the immediate environment are the firm, its competitors, and its corporate partners.
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Successful firms focus their efforts on satisfying customer needs that A. are easiest to satisfy. B. provide minimal core value. C. are important to all generational cohorts. D. competitors have tried and failed to satisfy. E. match their core competencies.
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E. match their core competencies. The firm's competencies are its strengths; the firm is likely to have the most success if it focuses on these, finding customers whose needs it can meet using these strengths.
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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 A. are easiest to satisfy. B. provide minimal core value. C. are important to all generational cohorts. D. competitors have tried and failed to satisfy. E. match its core competencies.
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E. match its core competencies. The firm's competencies are its strengths; the firm is likely to have the most success if it focuses on these, finding customers whose needs it can meet using these strengths.
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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 A. likely reaction to Yuri's promotional activities. B. demographics. C. just-in-time processes. D. satisfaction quotient as perceived by customers. E. ethical values.
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A. likely reaction to Yuri's promotional activities. Yuri must consider competitors' strengths and weaknesses to perform accurate comparisons; he must also understand how competitors will respond to the promotional campaign.
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The firms that work along with the focal firm to provide goods and services to consumers are viewed as A. cultural cohorts. B. corporate partners. C. cartels. D. cooperatives. E. customers.
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B. corporate partners. Corporate partners work with the firm to provide goods and services.
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Yellow Trucking provides transportation services for Dan's Delicious Donuts so that Dan's stores always have fresh stock. Yellow Trucking is an example of a A. cultural cohort. B. corporate partner. C. cartel. D. cooperative. E. customer.
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B. corporate partner. Corporate partners work with the firm to provide goods and services.
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The difference between a firm's immediate marketing environment and its macroenvironment is that the macroenvironment is A. external. B. easier to understand. C. easier to control. D. the same as the immediate environment. E. internal.
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A. external. The macroenvironment consists of factors external to the firm.
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The shared meanings, beliefs, morals, values, and customs of a group of people constitute their A. social concerns. B. culture. C. demographics. D. generational cohorts. E. religion.
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B. culture. This is the definition of culture. Some of the answer options (such as religion) are aspects of culture, but it is a broader concept.
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Political candidates are notorious for appealing to the different beliefs and values of groups of potential voters in different areas of the country. These politicians are appealing to differences in A. popular culture. B. regional culture. C. demographics. D. generational cohorts. E. country culture.
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B. regional culture. Regional culture refers to cultural differences across different areas of a country.
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Insight Guides, a line of travel books, provides travelers with background information about the people's beliefs, values, and customs. Insight's books educate travelers about a country's A. social concerns. B. political parties. C. demographics. D. generational cohorts. E. culture.
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E. culture. People's beliefs, values, and customs relate to their culture.
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When studying culture, the challenge for marketers is to determine whether culture A. can help to identify a particular group that might be interested in the marketer's products. B. is regional or subregional. C. reinforces stereotypes. D. is related to educational achievement. E. offers opportunities for competitors.
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A. can help to identify a particular group that might be interested in the marketer's products. The challenge for marketers is to have products or services identifiable by and relevant to a particular group of people.
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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 A. regional culture. B. generational cohort characteristics. C. country culture. D. a red/blue marketing campaign. E. the Walmart Effect.
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C. country culture. Country culture consists of a country's shared beliefs and values, which included a strong thread of patriotism after the WTC attacks.
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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 A. is socially important. B. is passed from generation to generation orally or by written guides. C. competes with or complements U.S. traditional culture. D. can be used as a relevant identifier for a particular target group. E. is an important immediate marketing environment variable.
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D. can be used as a relevant identifier for a particular target group. Some groups in the U.S. preserve their cultural identities while others seek to blend in. The more a group seeks to maintain its identity, the more relevant culture will be to identify a potential customer group.
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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? A. dress B. symbols C. demographics D. language E. social trends
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D. Language Language would be an important cultural issue; while both countries speak English, there are many differences in vocabulary.
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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 A. regional culture. B. country culture. C. generational factors. D. social trends. E. regulatory factors.
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A. regional culture These types of language differences are typical examples of regional cultural differences.
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The shift of population from the Rust Belt in the North to the Sun Belt in the South and Southwest will likely A. decrease national cultural identity. B. reduce regional cultural differences. C. make it difficult to collect demographic information. D. create a demand for a new generational cohort. E. make it more difficult for companies to differentiate their products.
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B. reduce regional cultural differences. Regional cultures represent differences between regions of a country. The more people move from one region to another, the more the cultures will tend to blend and become more similar.
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Typical demographic data include all of the following EXCEPT A. gender. B. income. C. race. D. education. E. language differences.
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E. language differences. All of these are examples of demographic factors except language differences, which is a cultural trait.
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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. A. country culture B. regional culture C. demographics D. micromarketing measures E. scenario planning
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C. demographics Age, income, gender, and race are demographic factors.
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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. A. regional cultures B. inflationary expectations C. political affiliations D. purchase behavior E. cultural values
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D. purchase behavior Generational cohorts are presumed to have similar purchase behavior due to similar life experiences and similarity of life stage.
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Viewers of the World Series are likely to see ads for beer and cars, and viewers of the Academy Awards broadcast are likely to see ads for clothing and hair care products, due to A. cultural expectations. B. male domination in corporate boardrooms. C. differing demographic data for potential and past viewers. D. marketers' general perceptions. E. multiyear advertising contracts that cannot be broken.
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C. differing demographic data for potential and past viewers. Gender is a demographic variable, and these programs do tend to attract different genders; thus, this difference in advertising is based on demographic information.
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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. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z
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A. Baby Boomers These characteristics are typical of Baby Boomers.
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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. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z
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C. Generation X These characteristics are typical of Generation X.
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Julie has been doing the family's weekly shopping since she was twelve, although she doesn't particularly like doing it. She tends to question what salespeople tell her and demands convenience. Julie demonstrates characteristics of the __________ generational cohort. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z
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C. Generation X Julie's characteristics are typical of the skeptical consumers in Generation X.
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Tweens are part of which generational cohort? A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z
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D. Generation Y Tweens are the youngest component of Generation Y.
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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 A. deceptive advertising. B. greenwashing. C. environmental exploitation. D. virtual greening. E. enviromarketing.
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B. greenwashing. The term for disingenuously marketing products as environmentally friendly when they are not is greenwashing.
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When considering income as a demographic variable affecting marketing efforts, marketers need to recognize that A. everyone is equal. B. income in the United States has become more unevenly distributed. C. everyone has been equally affected by the recession. D. there is increasing purchasing power among lower income groups. E. middle-income consumers are quickly becoming upper-income consumers.
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B. income in the United States has become more unevenly distributed. Income distribution has gotten increasingly unequal in the United States, with high-income groups getting richer and low-income groups getting poorer.
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Astute marketers recognize that the increasing disparity of income between upper- and lower-income groups A. will create inflationary expectations. B. will disappear as ethnicity becomes a stronger cultural determinant. C. creates opportunities to provide value to each group. D. will vanish once the recession ends. E. is attributable to technological expertise of immigrant groups.
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C. creates opportunities to provide value to each group. Upper-income, middle-income, and lower-income individuals are all consumers, and all can be offered value in different ways.
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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 A. culture. B. demographics. C. scenario planning. D. value. E. green marketing.
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D. value. American consumers are increasingly aware of and sensitive to the value provided by different product offerings.
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For some products, marketers can combine education level with other data like occupation and income to obtain A. a sense of consumers' regional culture. B. consumers' value sensitivity quotient (VSQ). C. the educational value equation. D. complete profiles of individual consumers. E. useful predictions of purchase behavior.
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E. useful predictions of purchase behavior. Certain habits—such as preferences for entertainment—can be predicted with reasonable accuracy from education, occupation, and income.
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Marketers know that, compared to high school graduates who are working full time, college students A. will earn less over their working lifetime. B. spend their disposable income differently. C. are less likely to buy textbooks. D. have almost identical spending patterns. E. are more likely to drink beer and less likely to drink wine.
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B. spend their disposable income differently. Education and occupation are partial predictors of how consumers spend their time and money, particularly in terms of leisure activities.
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Which of the following is TRUE regarding modern gender roles? A. Gender roles are a constant cultural norm. B. Modern standards require firms to produce gender neutral advertising for every product. C. Gender roles have been blurred in the past several years. D. Gender boundaries should never be crossed in marketing efforts. E. Gender roles are unimportant to marketers.
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C. Gender roles have been blurred in the past several years. Gender roles have been becoming less fixed and more blurred for the last several years, with men and women no longer playing traditional roles. While gender neutral promotion is used far more often today, there are still some products that are marketed primarily to a specific gender.
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Marketers should not assume that they can target all Asian consumers in the United States with one strategy because A. they speak different languages and come from different cultures. B. Asians do not respond to marketing efforts. C. there are not enough Asians in the United States to effectively target. D. each major city tends to have only one group of Asians in large numbers. E. one strategy is likely to be more expensive than multiple strategies.
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A. they speak different languages and come from different cultures. Asian consumers are not a single group—they come from many nations (including China, Japan, Korea, Vietnam, Thailand, and many more) with different languages and cultures.
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Marketers in the United States are paying increasing attention to ethnic groups because A. they represent a majority of the population in non-urban areas of the country. B. approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups. C. they are more susceptible to marketing messages. D. government subsidies assist marketers attempting to communicate value to these groups. E. country culture is replacing regional culture as a key marketing consideration.
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B. approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups. Ethnic groups represent a fast-increasing percentage of the U.S. population.
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Marketers are more likely to find higher concentrations of foreign-born Americans and recent immigrants in A. rural areas. B. smaller states. C. New York, Los Angeles, and Chicago. D. coastal resort areas. E. Great Lakes agricultural areas.
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C. New York, Los Angeles, and Chicago. Although they can be found anywhere, immigrants and foreign-born Americans are found in large numbers in major cities like New York, Los Angeles, Chicago, and San Francisco.
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Though Asian Americans comprise only 6 percent of the U.S. population, they represent A. the fastest growing minority population. B. the easiest minority group to access. C. a large proportion of the minorities in the Midwest. D. a uniform group of consumers with a common language and cultural background. E. all of these
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A. the fastest growing minority population. Asian Americans are the fastest growing ethnic minority in the United States.
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Strategic efforts to supply consumers with environmentally friendly merchandise are called A. reduce, reuse, recycle. C. the green generation. D. the inconvenient truth. E. earth marketing.
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C. the green generation. Green marketing refers to the marketing of environmentally responsible products.
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By offering environmentally responsible products, green marketers A. undercut prices of non-environmentally responsible marketers. B. keep costs much lower than those of competitors. C. make consumers feel guilty for buying other products. D. add value that other products do not have. E. all of these
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D. add value that other products do not have. Environmentally responsible products have additional value for consumers to whom protecting the environment is important.
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Many American consumers are purchasing hybrid automobiles even though they are more expensive than compact conventional autos. These consumers A. value contributing to a greener environment. B. are economically irrational. C. are responding to global corporate pressure for social responsibility. D. would prefer an SUV. E. are greenwashing.
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A. value contributing to a greener environment. These consumers are willing to pay more for environmentally friendly products because care for the environment is something that adds value.
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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? A. Honest telemarketers found it easier to reach customers. B. Dishonest telemarketers have still been able to get through. C. Consumers received more telemarketing calls than ever. D. Companies have increased their emphasis on telemarketing approaches. E. The Do Not Call Registry was disbanded due to its ineffectiveness.
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B. Dishonest telemarketers have still been able to get through. Honest telemarketers found it more difficult to reach customers because of the restrictions. Meanwhile, dishonest telemarketers who broke the rules found it easier to get their calls answered because the total number of calls went down.
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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 A. his financial situation. B. his lack of privacy. C. the marketer's lack of cultural awareness. D. his telephone bill. E. his technological comfort.
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B. his lack of privacy. Jason was likely shocked that the marketer knew his personal information—in other words, that his privacy had been violated.
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The many demands on consumers today have made it more difficult for marketers to A. grab consumers' attention. B. decide what to offer. C. deliver products just-in-time. D. differentiate between the needs of seniors and Baby Boomers. E. offer green marketing solutions.
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A. grab consumers' attention. Getting consumers' attention in the time-poor society is difficult.
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Because Americans are working longer hours without increases in real, disposable income, and are using an army of communication devices to keep up with the demands in their personal and work lives, retailers are A. increasing their budgets for traditional advertising outlets like television and radio. B. making their products available whenever and wherever consumers want them. C. outsourcing marketing communications to global production facilities. D. focusing only on those demographic cohorts that have time to relax. E. de-emphasizing U.S. sales and expanding globally.
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B. making their products available whenever and wherever consumers want them. It is not necessary to abandon the U.S. market—the time-poor society simply requires retailers to consider consumer convenience, and make sure consumers can get products where and when they want them—online, via mobile devices, or at unusual hours, for example.
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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 A. privacy of communications. B. the time-poor society. C. green marketing. D. increased costs of air travel. E. federal restrictions on advertising.
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B. the time-poor society. The time-poor society leaves consumers with less time to consume traditional media like TV, radio, newspapers, and magazines, so marketers are increasingly trying nontraditional alternatives that consumers may see while going about their busy lives.
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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 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. staying open late. D. advertising their products heavily on daytime television. E. using creative checkout procedures so Gretchen can finish her shopping quickly.
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D. advertising their products heavily on daytime television. All of these options except for heavy advertising on daytime TV will be good ways to create value for Gretchen.
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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 A. increase value to the consumer through media effectiveness promotion. B. tailor their marketing messages. C. meet inventory needs. D. communicate with consumers on social media sites. E. replace services with products.
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C. meet inventory needs. Some of the other options address ways that technology can help firms communicate with consumers; however, the question asks about members of the supply chain using technology; inventory management is an example of how the supply chain can benefit from technology.
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When marketers monitor the economic situation affecting their target markets, they are likely to monitor changes in all of the following EXCEPT A. purchasing power. B. interest rates. C. inflation. D. age. E. currency exchange rates.
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D. age. ncome, interest rates, and inflation are among the economic factors.
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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 A. incomes rose dramatically. B. interest rates fell to compensate for increased inflation. C. Mexican products became less expensive while U.S.-made products became comparatively more expensive. D. Mexican products became more expensive while U.S.-made products became comparatively less expensive. E. U.S.-made products became less attractive to purchase.
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D. Mexican products became more expensive while U.S.-made products became comparatively less expensive. By keeping the exchange rate constant, U.S.-made products' prices would go down, compared to their Mexican counterparts, whose prices would rise with inflation.
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Laws that prohibit the formation of monopolies or alliances that would damage a competitive marketplace benefit consumers through A. increased choices. B. higher prices. C. protection from false advertising. D. fair debt collection practices. E. fewer competitors.
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A. increased choices. The concern about monopolies and alliances is that they will inhibit competition, possibly raising prices and reducing choice.
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Which of the following groups has never lived without easy access to the Internet and other digital technologies? A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z
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E. Generation Z Generation Z, the Digital Natives, have had access to Internet technology for their entire lives. The youngest part of Generation Y, called Tweens, have similarly always had access to the Internet; however, the older portion of Generation Y was born before the Internet was available.
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Which of these is a macroenvironmental factor? A. culture B. corporate partners C. competition D. company E. competencies
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A. culture Corporate partners, competition, and company are all part of the immediate environment.
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Kimberly-Clark recently introduced rolls of toilet paper without the cardboard core. What social trend does this product respond to? A. green marketing B. time-poor society C. cultural diversity D. technological advances E. regulatory issues
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A. green marketing By eliminating the cardboard core, a form of consumer waste is eliminated, which would be of interest to consumers concerned about the environment—in other words, this is an example of green marketing.
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The members of the __________ generational cohort tend to share preferences for TV shows and video games with their parents. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z
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E. Generation Z Generation Z members tend to share their Generation X parents' tastes in TV shows, video games, and some types of shopping.
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The members of the __________ generational cohort were born into a world where the Internet and extensive digital technologies already existed. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z
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E. Generation Z The members of Generation Z, born starting in 2001, have never known a world without the Internet and a variety of digital gadgets.
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If McDonald's wanted to change its marketing strategy in response to the social trends outlined in the text, it might consider all of the following ideas EXCEPT A. offering an expanded menu of healthy options. B. speeding up drive-through service. C. using recycled paper in its food packaging. D. expanding its low-cost menu options. E. creating an advertising campaign to target elementary school children.
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E. creating an advertising campaign to target elementary school children. Targeting pre-teens is related to demographic factors, not a current social trend, and in fact would probably be considered to work against the social trend toward health and wellness, given that many of McDonald's menu items are considered to be unhealthy.
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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 A. wireless payments from mobile devices. B. location-based social media applications. C. mobile devices completely replacing desktop and laptop computers. D. devices that block smartphone usage in retail stores. E. RFID tags.
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A. wireless payments from mobile devices. Applications are being developed to take advantage of near field communication, a short-range wireless communication method that will allow (among other things) wireless payments to be sent from mobile devices. This would allow consumers to pay with nothing more than a smartphone. Location-based social media applications have existed for a few years now, and an organization that stays current with technology would already have experimented with these.
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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 A. fake greening. B. greenwashing. C. greenbaiting. D. green puffery. E. red marketing.
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B. greenwashing. Greenwashing is the practice of claiming environmental benefits for your product that are not genuine.
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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 A. flu shots. B. high-carbohydrate diets. C. yoga. D. cooking shows on TV. E. juicing.
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C. yoga. Yoga classes and supplies are increasing in popularity as part of the wellness trend.
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The political/regulatory environment comprises political parties, governmental organizations, and A. legislation and laws. B. citizens. C. interest groups. D. for-profit and nonprofit businesses. E. international influences.
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A. legislation and laws. The political/regulatory environment comprises political parties, government organizations, and legislation and laws.
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Christy, who was born in 1955, advocated for casual Friday at her workplace. Christy is a member of which generational cohort? A. Baby Boomer B. Gen X C. Gen Y D. Gen Z E. Millennials
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A. Baby Boomer Baby Boomers are people born after World War II, 1946-1964, and they brought casual dressing into the business arena.
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Which generation is also known as Millennials? A. Baby Boomer B. Gen X C. Gen Y D. Gen Z E. the Digital Natives
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C. Gen Y Generation Y is also called Millennials
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Generation X is known for which of the following characteristics? A. the most globally connected generation B. the biggest cohort since the original post World War II boom C. consider marriage secondary, and not obviously necessary, to being good parents themselves D. the first generation of latchkey children E. have an obsession with maintaining their youth
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D. the first generation of latchkey children Gen X is the first generation of latchkey children. Gen Z is the most globally connected. Gen Y is the biggest cohort since the post WWII boom and considers marriage secondary to being good parents themselves. Baby Boomers tend to have an obsession with maintaining their youth.
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The poorest 10 percent of the U.S. population earned less than _______ per week in 2010. A. $2500 B. $1801 C. $1265 D. $920 E. $374
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E. $374 The poorest 10 percent of the population earned less than $374 per week.
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Which statement about the changing ethnicity in the United States is TRUE? A. Minorities now represent almost half of the population in the United States. B. In spite of increases in the Hispanic population, Hispanic buying power is expected to maintain its current level. C. Hispanics differ vastly from other groups in America in terms of consumer behavior. D. African American U.S. households are more affluent than previous studies suggested. E. Asian Americans are the slowest growing minority population.
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D. African American U.S. households are more affluent than previous studies suggested. The 2010 U.S. census counted 42 million African American U.S. households, who are more affluent and suburban than previous studies suggested.
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According to the text, fourteen cable companies agreed to provide low-cost Internet access to impoverished families for all of the following reasons EXCEPT A. calls for greater social responsibility. B. increased income from a larger number of subscribers. C. increasing access to faster broadband capabilities. D. the economic status of consumers. E. pressures from the Federal Communications Commission.
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B. increased income from a larger number of subscribers. Increased income is not mentioned as a reason for this change.
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Credit card companies must now state the interest rate that is being paid and inform consumers what they will pay if they only make interest payments. This is a result of legislation that has been enacted to protect consumers in which of the following areas? A. Manufacturers are required to refrain from using any harmful or hazardous materials that might place a consumer at risk. B. Marketers must abstain from false or misleading advertising practices that might mislead consumers. C. Companies may not use misleading commercial email. D. Companies are prohibited from the manufacture or sale of adulterated or fraudulently labeled food and drug products. E. Organizations must adhere to fair and reasonable business practices when they communicate with consumers.
answer
E. Organizations must adhere to fair and reasonable business practices when they communicate with consumers. According to the legislation, organizations must adhere to fair and reasonable business practices when they communicate with consumers. For example, they must employ reasonable debt collection methods and disclose any finance charges.
question
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. A. communication B. political/regulatory C. Constitutional D. social E. technological
answer
B. political/regulatory The political/regulatory environment comprises political parties, government organizations, and legislation and laws.
question
The 1936 ________ specifically outlawed price discrimination toward wholesalers, retailers, or other producers and required sellers to make ancillary services or allowances available to all buyers on proportionately equal terms. A. Sherman Antitrust Act B. Clayton Act C. Robison-Patman Act D. Financial Reform Law E. Do Not Spam Law This describes the 1936 Robison-Patman Act.
answer
C. Robison-Patman Act
question
What is MOST likely to happen when inflation increases? A. Consumers buy more discretionary merchandise. B. Consumers buy fewer personal care and home entertainment products. C. Off-price and discount retailers suffer from lower sales. D. Consumers buy lower priced foods. E. Consumers buy less food.
answer
D. Consumers buy lower priced foods. When inflation increases, consumers probably don't buy less food, but instead buy less expensive food to make their dollar go further.
question
________ is the cost to the customers or the fee the bank charges those customers for borrowing money. A. Interest B. A service charge C. A tax D. A tariff E. A user fee
answer
A. Interest vThis is the definition of interest.
question
The value of the euro has changed significantly since 2002 with the problems experienced by several European economies. This change in value is called A. interest destabilization. B. inflation. C. recession. D. foreign currency fluctuations. E. global financial impact.
answer
D. foreign currency fluctuations. This is the definition of foreign currency fluctuations.
question
One drawback to marketing products on smartphones compared to other kinds of web experiences is A. few people use their smartphones for shopping. B. more people access the Web through laptops than smartphones. C. the cost of mobile apps makes it prohibitive for most companies. D. the smaller screen means that less information must convey the same brand image. E. consumers are cynical and don't believe advertising on smartphones.
answer
D. the smaller screen means that less information must convey the same brand image. Although some consumers are cynical and don't believe advertising, the issue that challenges marketers with smartphones is the smaller screen, which means that less information must convey the same brand image.
question
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 A. currency fluctuation. B. inflation. C. recession. D. interest. E. deflation. Inflation refers to the persistent increase in the prices of goods and services.
answer
B. inflation. Inflation refers to the persistent increase in the prices of goods and services.
question
From a firm's perspective, the biggest advantage of RFID is A. it enables the firm to track an item from the moment it was manufactured. B. it tells the firm who is buying the product and how it is being used. C. it provides demographic information on the consumer for marketing use. D. it is less expensive to use than other forms of marketing research. E. it eliminates the need for communicating with the supply chain.
answer
A. it enables the firm to track an item from the moment it was manufactured. RFID enables a firm to track an item from the moment it was manufactured, through the distribution system, to the retail store, and into the hands of the final consumer. Because they are able to determine exactly how much of each product is at a given point in the supply chain, retailers can also communicate with their suppliers and collaboratively plan to meet their inventory needs.
question
According to the text, younger consumers deal with having a lack of leisure time by A. sleeping less. B. eating unhealthy fast food meals. C. watching television programs on their laptops. D. multitasking. E. spending less time on the phone.
answer
D. multitasking. Among younger consumers, the trend is to cope with a lack of leisure time by multitasking—watching television or listening to music while talking on the telephone or doing homework.
question
Which of the following is an example of greenwashing? A. A company markets a product made from recycled glass bottles. B. A company charges more for a hybrid car than for a similar gas model. C. A company donates money to a school reading project so it can advertise itself as environmentally friendly. D. The Smiths installed energy-saving light bulbs in their rental apartment buildings. E. The corner Laundromat only stocks phosphate-free detergent in its vending machines.
answer
C. A company donates money to a school reading project so it can advertise itself as environmentally friendly. Donating money to a school for a reading project is socially responsible, but not necessarily environmentally friendly. This is greenwashing for public approval.
question
What percentage of U.S. adults now recycle their soda bottles and newspapers? A. 10% B. 20% C. 50% D. 75% E. 90%
answer
C. 50% About half of U.S. adults recycle soda bottles and newspapers. European consumers are even greener.
question
What is the lipstick effect? A. a tendency to buy clothing one has seen on beautiful models B. treating oneself to a small luxury like lipstick and forgoing a luxury vacation C. discrimination against women in the workplace D. favoritism for women in the workplace E. the tendency of women to buy more expensive items when they are wearing nice clothes and makeup The lipstick effect relates to spending less on luxuries without forgoing ALL luxuries.
answer
B. treating oneself to a small luxury like lipstick and forgoing a luxury vacation The lipstick effect relates to spending less on luxuries without forgoing ALL luxuries.
question
Which of the following is NOT a social trend listed in the text? A. thrift B. health and wellness C. greener consumers D. privacy concerns E. technological advances
answer
E. technological advances Technological advances are not social trends.
question
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? A. Northern European B. Middle Eastern C. Hispanic D. Asian E. African American
answer
D. Asian Asian Americans make up only about 5.6 percent of the U.S. population, but they also represent the fastest growing minority population, tend to earn more, have more schooling, and are more likely to be professionally employed or own a business.
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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? A. Caucasian B. Pacific Islander C. Hispanic D. Asian E. African American
answer
E. African American This describes African Americans.
question
For Nike's annual Women's Marathon in San Francisco, the participants received all of the following EXCEPT A. a necklace from Tiffany's. B. massages. C. pedicures. D. chocolate. E. Nike shoes.
answer
E. Nike shoes. They received all except Nike shoes. Men were also invited to participate in the freebies.
question
Those who graduate from college tend to earn an annual salary that averages about _______ more than a high school graduate averages. A. $10,000 B. $21,500 C. $49,000 D. $55,500 E. $82,000
answer
B. $21,500 A high school graduate earns, on average, an annual salary of $32,500. A college graduate averages $54,000. The difference is $21,500.
question
Marketers cater to the ________ cohort with larger fonts in signage and seating options in stores. A. Baby Boomer B. Gen X C. Gen Y D. Gen Z E. Millennials
answer
A. Baby Boomer Retailers recognize the buying power of the aging Baby Boomers, so they make concessions for them.
question
A generational cohort is a group of people A. who share similar characteristics. B. who grew up and went to school together. C. with the same beliefs and values. D. who are of the same generation. E. who are not open to new things.
answer
D. who are of the same generation.
