Marketing 14Th Edition By Roger – Test Bank

 

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Sample Test

Marketing, 14e (Kerin)

Chapter 3: Scanning the Marketing Environment

 

1) Facebook has approximately what fraction of the world’s population as customers?

1.   A) one-half

2.   B) one-third

3.   C) one-quarter

4.   D) one-fifth

5.   E) one-seventh

 

Answer:  C

Explanation:  In 2004 Mark Zuckerberg started Facebook in his Harvard dorm room. His vision was not just to be a company, but to connect everyone in the world. Today, with 1.8 billion users, or nearly one-quarter of the world’s population, Facebook is well on its way to accomplishing that vision.

Difficulty: 1 Easy

Topic:  Environmental Influences on Marketing

Learning Objective:  03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

2) All of the following statements about the environmental forces that have influenced Facebook are true except which?

1.   A) The Federal Trade Commission (FTC) has a laissez-faire policy of not interfering with the development and marketing of Facebook and other social media websites.

2.   B) Technological advances in data storage, server speed, and software integration have made Facebook increasingly fast and convenient.

3.   C) Its rivalry with Google, Twitter, Snapchat, and new social networks encourages rapid expansion.

4.   D) The cost of wireless connectivity and smartphones rapidly declined, and Internet access expanded, which increasingly made social networking affordable for more people.

5.   E) People increasingly look for new ways to communicate, obtain information, and offer opinions.

 

Answer:  A

Explanation:  All five environmental forces have influenced Facebook, but the legal and regulatory force was that the company obtains trademark and patent rights to its name and many of its features, and it provides guidelines for a variety of topics such as privacy, data protection, protection of minors, and taxation. There is no mention of the FTC’s efforts regarding Facebook, but in general the U.S. government agency has been involved in regulating the practices of social networks.

Difficulty: 2 Medium

Topic:  Environmental Influences on Marketing

Learning Objective:  03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

3) Environmental scanning refers to

1.   A) assessing any possible negative impact a firm’s activities might have on the local ecology.

2.   B) continually acquiring information on events occurring outside the organization to identify and interpret potential trends.

3.   C) setting up a regular schedule to assess the performance of different divisions within a firm.

4.   D) initiating an internal talent search to identify employees who can think “outside the box” to generate solutions to marketing problems caused by changes in the marketing environment.

5.   E) requiring all employees to spend time outside the office to avoid the “ivory tower” syndrome.

 

Answer:  B

Explanation:  Key term definition—environmental scanning.

Difficulty: 1 Easy

Topic:  Environmental Influences on Marketing

Learning Objective:  03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

4) The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is referred to as

1.   A) significant trend analysis.

2.   B) organizational scanning.

3.   C) environmental scanning.

4.   D) a SWOT analysis.

5.   E) marketing intelligence.

 

Answer:  C

Explanation:  Key term definition—environmental scanning.

Difficulty: 1 Easy

Topic:  Environmental Influences on Marketing

Learning Objective:  03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

5) Environmental trends arise from all of the following forces except which?

1.   A) competitive

2.   B) economic

3.   C) regulatory

4.   D) geographical

5.   E) social

 

Answer:  D

Explanation:  Environmental scanning trends come from social, economic, technological, competitive, and regulatory forces. See Figure 3-1.

Difficulty: 1 Easy

Topic:  Environmental Influences on Marketing

Learning Objective:  03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

6) The purpose of environmental scanning is to

1.   A) uncover causes of trends in the marketplace.

2.   B) uncover opportunities in the marketplace.

3.   C) stop unhelpful trends in the marketplace, and speed helpful ones.

4.   D) stop unhelpful trends in the workplace, and speed helpful ones.

5.   E) identify and interpret trends in the marketplace.

 

Answer:  E

Explanation:  The purpose of environmental scanning is to identify and interpret trends in the marketplace that affect the marketing activities of the firm. Environmental scanning is done through continually acquiring information on events occurring outside the organization.

Difficulty: 2 Medium

Topic:  Environmental Influences on Marketing

Learning Objective:  03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

7) Which of the following statements regarding environmental scanning is the most accurate?

1.   A) Environmental scanning changes the marketing environment.

2.   B) Environmental scanning identifies and interprets potential trends.

3.   C) Environmental scanning should be done about every five years.

4.   D) Environmental scanning focuses primarily on ecological factors.

5.   E) It is too costly and there is too much information generated from environmental scanning to make it viable for small firms.

 

Answer:  B

Explanation:  The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is called environmental scanning.

Difficulty: 2 Medium

Topic:  Environmental Influences on Marketing

Learning Objective:  03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

8) A firm conducting an environmental scan of the marketplace might uncover key ________ such as the growing popularity of brand advocates, the increasing application of virtual reality and augmented reality, and the importance of “gig economy” businesses’ legal challenges.

1.   A) profits

2.   B) responsibilities

3.   C) idealisms

4.   D) codes

5.   E) trends

 

Answer:  E

Explanation:  A firm conducting an environmental scan of the marketplace might uncover key trends such as the growing popularity of brand advocates, the increasing application of virtual reality and augmented reality, and the importance of “gig economy” businesses’ legal challenges. See Figure 3-2.

Difficulty: 2 Medium

Topic:  Environmental Influences on Marketing

Learning Objective:  03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

9) Starbucks entered a partnership with Keurig Green Mountain to sell K-Cup single-serving coffee packs. Because Starbucks ________, it was prepared for this shift in its marketing environment.

1.   A) optimized its distribution by adding local outlets in grocery stores

2.   B) noticed the change in the demographics of coffee and tea drinkers in general

3.   C) added more in-store displays

4.   D) shifted funds from product development to advertising

5.   E) tracked, as part of its ongoing environmental scanning activities, the percentage of households with single cup brewers

 

Answer:  E

Explanation:  The increase in the percentage of households with single-cup brewers led to changes in the marketplace, so Starbucks joined the move to single-serving coffee packs.

Difficulty: 3 Hard

Topic:  Environmental Influences on Marketing

Learning Objective:  03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Bloom’s:  Apply

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

10) As the director of marketing for a local hospital that specializes in caring for limited mobility patients and related health issues, you must conduct an environmental scan to help create a five-year marketing plan for the hospital. Which of the following environmental trends should you consider to be the most important?

1.   A) The number of people in the geographic area who are 65 years or older will increase by 23 percent during the next five years.

2.   B) Millennials are becoming increasingly important in the workplace.

3.   C) The local community has seen a rise in dual-income households.

4.   D) By the year 2025, robotics will play a major role in surgical procedures.

5.   E) Twenty percent of the local population is of Hispanic origin, but that number is expected to grow during the next decade.

 

Answer:  A

Explanation:  The most important trend is the rise of the 65 and older population in the community because of the disproportionate demand for health care services among these consumers. This will likely be an important target market for the hospital.

Difficulty: 3 Hard

Topic:  Environmental Influences on Marketing

Learning Objective:  03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Bloom’s:  Apply

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

11) The Lemon Tree is a high-fashion boutique selling top-of-the-line women’s clothing and accessories. The keys to its success include knowing customers’ changing tastes and providing something different than other retailers. In addition, because of the high value of the merchandise, The Lemon Tree’s management is investing in the use of computerized inventory controls and sales order processing. The least important environmental force to The Lemon Tree at this time is likely to be

1.   A) economic.

2.   B) competitive.

3.   C) technological.

4.   D) social.

5.   E) regulatory.

 

Answer:  E

Explanation:  Only regulatory issues are not mentioned in the question.

Difficulty: 3 Hard

Topic:  Environmental Influences on Marketing

Learning Objective:  03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Bloom’s:  Apply

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

12) Local newspaper readership has declined significantly in recent years. Not only are traditional newspapers losing subscribers, they are also losing advertisers. To combat these trends, many newspaper publishers now offer online versions of their printed newspapers. This is most likely a response to which environmental force?

1.   A) economic, since few can afford a newspaper today

2.   B) competitive, resulting from new, smaller local newspapers that are flourishing

3.   C) technological, since high-speed printing presses have become easier to use

4.   D) social, resulting from changing consumer preferences for information delivered online

5.   E) regulatory, since the government provides tax incentives for paper-based products

 

Answer:  D

Explanation:  The declining readership of local newspapers (and magazines and books, for that matter) is a trend within the social environment. Many newspaper publishers believe that if they provided online versions of their printed editions, they could reduce the decline in subscribers or actually increase them since many now seek information in digital form.

Difficulty: 3 Hard

Topic:  Environmental Influences on Marketing

Learning Objective:  03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Bloom’s:  Apply

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

13) A growing trend to “Buy American” may encourage U.S. automakers to increase political pressure on Washington to pass legislation for more restrictive quotas on Japanese car imports. In addition, a decline in the value of the U.S. dollar would be instrumental in Toyota’s decision to build a manufacturing plant in the United States instead of continuing to export cars from Japan. If Toyota builds the plant, its decision would reflect

1.   A) a reactive strategy that would impact the competitive environmental force.

2.   B) a proactive maneuver to manipulate and impact the social environmental force.

3.   C) a positive result from regulatory and economic environmental forces.

4.   D) a positive response to a technological environmental force.

5.   E) a negative impact as a result of adverse competitive, regulatory, and technological environmental forces.

 

Answer:  C

Explanation:  The identified examples represent regulatory and economic environmental forces that are not controllable by Toyota but could positively influence its decision to build a plant in the United States.

Difficulty: 3 Hard

Topic:  Environmental Influences on Marketing

Learning Objective:  03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Bloom’s:  Apply

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

14) Many large consulting firms are beginning to sponsor “women-only” networking events. The purpose of these events is to offer an opportunity for women in management to network with other businesswomen, either as clients, mentors, or protégés. This is an example of which environmental force?

1.   A) social

2.   B) economic

3.   C) technological

4.   D) competitive

5.   E) regulatory

 

Answer:  A

Explanation:  There are increasing numbers of women in the workforce, a social environmental trend. These events can help women moving up the corporate ladder become connected with other women.

Difficulty: 3 Hard

Topic:  Environmental Influences on Marketing

Learning Objective:  03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Bloom’s:  Apply

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

15) The Kansas state legislature recently banned the use of tanning beds by anyone under the age of 18. This restriction would be an example of which environmental force?

1.   A) social

2.   B) economic

3.   C) technological

4.   D) competitive

5.   E) regulatory

 

Answer:  E

Explanation:  Government regulation like the law mentioned here is considered one of the uncontrollable environmental forces that include social, technological, economic, competitive, and regulatory forces.

Difficulty: 3 Hard

Topic:  Environmental Influences on Marketing

Learning Objective:  03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Bloom’s:  Apply

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

16) Using smartphones, one can watch the news, shoot videos, browse the Internet, take pictures, and listen to music. Improved features are added with each smartphone introduced by Apple, Samsung, LG, and others. As a result, customers often want to replace their existing smartphones with new models or brands every two years when their contracts expire. This increase in demand is due mostly to changes in ________, an environmental force.

1.   A) competition

2.   B) social culture

3.   C) technology

4.   D) regulations

5.   E) the economy

 

Answer:  C

Explanation:  The technological environmental force has resulted in the addition of new features for the latest generation of smartphones, which make them appealing to prospective and current smartphone consumers, the latter whose contracts expire on average every two years.

Difficulty: 3 Hard

Topic:  Environmental Influences on Marketing

Learning Objective:  03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Bloom’s:  Apply

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

17) Pending federal legislation will require all online retailers to collect state sales taxes from customers. This would affect online sellers such as Virtual Vineyards, which now collects state sales taxes only from customers who reside in California, its home state. This pending legislation would be an example of which environmental force?

1.   A) social

2.   B) economic

3.   C) technological

4.   D) competitive

5.   E) regulatory

 

Answer:  E

Explanation:  Government regulation is generally considered to be one of the uncontrollable or environmental forces. This legislation may be economically motivated, but it nonetheless is an aspect of the regulatory environment.

Difficulty: 3 Hard

Topic:  Environmental Influences on Marketing

Learning Objective:  03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Bloom’s:  Apply

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

 

18) The set of environmental forces that consists of the demographic characteristics of the population and its culture is referred to as

1.   A) social forces.

2.   B) economic forces.

3.   C) consumer forces.

4.   D) cultural forces.

5.   E) market forces.

 

Answer:  A

Explanation:  Key term definition—social forces.

Difficulty: 1 Easy

Topic:  Sociocultural Influences

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

19) The social forces in the environment include the ________ of the population and its culture.

1.   A) living standards

2.   B) social classes

3.   C) cohorts

4.   D) ethics

5.   E) demographic characteristics

 

Answer:  E

Explanation:  Key term definition—social forces.

Difficulty: 1 Easy

Topic:  Sociocultural Influences

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

20) Which of the following statements regarding social forces is most accurate?

1.   A) Social forces can have a dramatic impact on marketing strategy.

2.   B) As a social force, consumer incomes have more impact on marketing strategy than demographics.

3.   C) Social forces within an organization motivate employees to improve their productivity.

4.   D) Social forces determine all of the other environmental forces that affect an organization.

5.   E) Of all the environmental forces, social forces are the easiest for a marketer to manipulate.

 

Answer:  A

Explanation:  The social forces of the environment include the demographic characteristics of the population and its culture. Changes in these forces can have a dramatic impact on marketing strategy.

Difficulty: 2 Medium

Topic:  Sociocultural Influences

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

21) Which of the following would be identified as a social force in an environmental scan?

1.   A) a new consumer protection law

2.   B) an increase in Asian immigration

3.   C) an advanced technology is perfected

4.   D) a decrease in consumer incomes

5.   E) a new international firm exporting to the United States

 

Answer:  B

Explanation:  Social forces of the environment include demographic shifts, such as an increase in Asian immigration.

Difficulty: 2 Medium

Topic:  Sociocultural Influences

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

22) Generation X consumers indicate they want online customer support; websites that are comprehensive, professional, and interactive; and advertising that is authentic, family-oriented, and unique. Generation X is also replacing baby boomers as the largest segment of business travelers. In response, American Airlines is offering travelers in-flight Wi-Fi, entertainment on demand, and personal powerports. This is an example of how ________ forces impact the marketing environment.

1.   A) economic

2.   B) competitive

3.   C) social

4.   D) technological

5.   E) regulatory

 

Answer:  C

Explanation:  Social forces include the demographic characteristics of the population, such as age. Generation X is replacing baby boomers as the largest segment of business travelers. In response, American Airlines is offering travelers in-flight Wi-Fi, entertainment on demand, and personal powerports.

Difficulty: 3 Hard

Topic:  Sociocultural Influences

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Apply

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

23) An important social trend is the continued concern for health and well-being in the United States. This is most likely evidenced by

1.   A) the increased sales of Cigar Aficionado

2.   B) the introduction of Lay’s Kettle Cooked potato chips, which have 40 percent less fat than regular potato chips.

3.   C) the opening of more Starbucks coffee boutiques in supermarkets.

4.   D) the upsizing of menu items at fast-food restaurants.

5.   E) the introduction of tablet devices such as the iPad.

 

Answer:  B

Explanation:  Social forces include the demographic characteristics of the population and its values. Interests in health, fitness, and appearance have prompted companies such as Frito-Lay, for example, to attract baby boomers with its Lay’s Kettle Cooked potato chips, which have 40 percent less fat than regular potato chips.

Difficulty: 3 Hard

Topic:  Sociocultural Influences

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Apply

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

24) Publishers were surprised by the dramatic success of the book Fifty Shades of Grey and believe that it would likely generate a fresh cycle of female-targeted romances packaged for the mainstream reader. This is an example of a(n) ________ force impacting the marketing environment.

1.   A) economic

2.   B) competitive

3.   C) technological

4.   D) social

5.   E) regulatory

 

Answer:  D

Explanation:  Social forces include the demographic characteristics of the population and its values, the latter of which shape consumer buying patterns, as is the case with the publishing industry.

Difficulty: 3 Hard

Topic:  Sociocultural Influences

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Apply

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

25) Demographics refer to

1.   A) the depiction of a population according to its core values or cultural beliefs and their rate of change.

2.   B) an objective measurement of a person’s likelihood to purchase a product or service.

3.   C) the psychological profile of prospective consumers.

4.   D) the density of a population in a geographic area.

5.   E) the description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.

 

Answer:  E

Explanation:  Key term definition—demographics.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

26) The description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation is referred to as

1.   A) consumer group profiling.

2.   B) demographics.

3.   C) behavioral analysis.

4.   D) psychographics.

5.   E) statistical analysis.

 

Answer:  B

Explanation:  Key term definition—demographics.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

27) Demographic characteristics that describe a population include all of the following except which?

1.   A) income

2.   B) age

3.   C) occupation

4.   D) zip code

5.   E) ethnicity

 

Answer:  D

Explanation:  Key term definition—demographics. Zip code is a geographic characteristic.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

28) More is a publication designed to appeal to women aged 40 and over. Demand for such magazines is an example of how changing ________ characteristics impact the marketing environment.

1.   A) cultural

2.   B) behavioral

3.   C) psychographic

4.   D) occupational

5.   E) demographic

 

Answer:  E

Explanation:  Describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation is referred to as demographics. The age of readers is a demographic characteristic.

Difficulty: 3 Hard

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Apply

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

29) The most recent estimate indicates that the population of the world today is about

5.   A) 5.7 billion.

6.   B) 6.3 billion.

7.   C) 7.4 billion.

8.   D) 8.2 billion.

9.   E) 9.5 billion.

 

Answer:  C

Explanation:  The world population today is estimated at 7.4 billion people.

Difficulty: 1 Easy

Topic:  Environmental Influences on Marketing

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

30) By 2050, the world’s population is expected to exceed

1.   A) 2 billion.

2.   B) 3 billion.

3.   C) 5 billion.

4.   D) 6 billion.

5.   E) 9 billion.

 

Answer:  E

Explanation:  By 2050, the world’s population is expected to exceed 9 billion. It is already about 7.4 billion.

Difficulty: 1 Easy

Topic:  Environmental Influences on Marketing

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

31) The change in the growth of the world’s population is called the

1.   A) population contraction.

2.   B) population inversion.

3.   C) population migration.

4.   D) population explosion.

5.   E) population eruption.

 

Answer:  D

Explanation:  Text term definition—population explosion.

Difficulty: 1 Easy

Topic:  Environmental Influences on Marketing

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

32) The population explosion has occurred

1.   A) primarily in the developing countries of Asia and Africa.

2.   B) fairly evenly throughout the world.

3.   C) primarily in the United States due to high birthrates and immigration.

4.   D) primarily in the countries of the European Union due to high birthrates and immigration.

5.   E) primarily in developed countries due to better economic, infrastructure, and health care conditions.

 

Answer:  A

Explanation:  The population explosion is occurring primarily in the developing countries of Africa and Asia.

Difficulty: 2 Medium

Topic:  Environmental Influences on Marketing

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

33) Projections show that the population is

1.   A) growing in most developed countries.

2.   B) declining in most developing countries.

3.   C) decreasing in Africa.

4.   D) increasing in Asia.

5.   E) decreasing in Latin America.

 

Answer:  D

Explanation:  Population explosion is occurring primarily in the developing countries of Africa and Asia. In fact, India is predicted to have the world’s largest population in 2050 with 1.7 billion people, replacing the current largest country, China, which will have a population of 1.3 billion people. World population projections show that the populations of 42 countries, including China, Japan, Ukraine, Russia, Romania, Poland, Spain, and Taiwan, will be declining.

Difficulty: 2 Medium

Topic:  Environmental Influences on Marketing

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

34) The country expected to have the largest population in 2050 is

1.   A) the United States.

2.   B) India.

3.   C) China.

4.   D) Russia.

5.   E) Brazil.

 

Answer:  B

Explanation:  India is predicted to have the world’s largest population in 2050 with 1.7 billion people. China will be a close second with 1.3 billion.

Difficulty: 1 Easy

Topic:  Environmental Influences on Marketing

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

35) Which of the following is a demographic trends that has significant implications to global marketers?

1.   A) the declining populations in Latin American countries

2.   B) the large and growing markets in India and China

3.   C) the tripling of the population of consumers under 40 years old

4.   D) the decreasing interest in entrepreneurship in developing countries

5.   E) the lack of savings of elderly populations in developed countries

 

Answer:  B

Explanation:  India is predicted to have the world’s largest population in 2050 with 1.7 billion people. China will be a close second with 1.3 billion. The relative size of these countries will mean they represent huge markets for many product categories.

Difficulty: 2 Medium

Topic:  Environmental Influences on Marketing

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

36) Studies of the ________ characteristics of the U.S. population suggest that it is becoming larger, older, and more diverse.

1.   A) cultural

2.   B) psychographic

3.   C) geographic

4.   D) demographic

5.   E) economic

 

Answer:  D

Explanation:  Demographic variables include those such as age, gender, ethnicity, income, and occupation that describe a population. Studies of the demographic characteristics of the U.S. population suggest several important trends. Generally, the population is becoming larger, older, and more diverse.

Difficulty: 1 Easy

Topic:  Environmental Influences on Marketing

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

37) Generally, the U.S. population is becoming

1.   A) smaller, younger, and more diverse.

2.   B) smaller, older, and more diverse.

3.   C) larger, younger, and less diverse.

4.   D) larger, younger, and more diverse.

5.   E) larger, older, and more diverse.

 

Answer:  E

Explanation:  Studies of the demographic characteristics of the U.S. population suggest several important trends. Generally, the population is becoming larger, older, and more diverse.

Difficulty: 1 Easy

Topic:  Environmental Influences on Marketing

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

38) By 2030, the U.S. population is expected to exceed

1.   A) 273 million.

2.   B) 314 million.

3.   C) 323 million.

4.   D) 359 million.

5.   E) 414 million.

 

Answer:  D

Explanation:  The U.S. Census Bureau estimates that the current population of the United States is approximately 325 million people. If current trends in life expectancy, birth rates, and immigration continue, by 2030 the U.S. population will exceed 359 million people.

Difficulty: 1 Easy

Topic:  Environmental Influences on Marketing

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

39) All of the following factors contribute significantly to the rate of change of a country’s population except which?

1.   A) life expectancy (the average number of years a population lives from birth)

2.   B) immigration (the number of people who enter a country for the purpose of permanent residence)

3.   C) population density (the total number of people per square mile/kilometer)

4.   D) birth rate (the number of births during a specified time period)

5.   E) death rate (the number of deaths during a specified time period)

 

Answer:  C

Explanation:  Population density has little to do with the growth or decline of a country’s population. All of the other alternatives have a significant impact on population growth.

Difficulty: 2 Medium

Topic:  Environmental Influences on Marketing

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

40) The generation of children born between 1946 and 1964 is referred to as

1.   A) the grey generation.

2.   B) millennials.

3.   C) Generation Y.

4.   D) baby boomers.

5.   E) Generation X.

 

Answer:  D

Explanation:  Key term definition—baby boomers.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

41) Baby boomers can be defined as the generation born

1945.         A) between 1918 and 1945.

1946.         B) between 1946 and 1964.

1947.         C) between 1965 and 1976.

1948.         D) between 1977 and 1994.

1949.         E) since 1995.

 

Answer:  B

Explanation:  Key term definition—baby boomers.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

42) Which of the following currently affects baby boomers, and thus those that market to them, in a significant way?

1.   A) They are beginning to have children.

2.   B) They are getting their high school and college educations.

3.   C) They are currently retiring or nearing retirement age.

4.   D) They are just being born.

5.   E) They are beginning their primary school educations.

 

Answer:  C

Explanation:  Baby boomers are currently retiring at a rate of 10,000 every 24 hours, and all will be 65 or older by 2030.

Difficulty: 2 Medium

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

43) Prudential, a financial planning firm, offers retirement plans and wealth management advice. These products are most likely targeted toward which generational cohort?

1.   A) Generation X

2.   B) baby busters

3.   C) Generation Y

4.   D) the greatest generation

5.   E) baby boomers

 

Answer:  E

Explanation:  Baby boomers are currently retiring at a rate of 10,000 every 24 hours, and all will be 65 or older by 2030. Companies that target boomers need to respond to their interests in health, fitness, retirement housing, financial planning, and appearance.

Difficulty: 3 Hard

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Apply

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

 

44) Olay, a personal care product firm, offers anti-aging and restoration products like its Total Effects cleansing cloths that are best targeted toward

1.   A) echo-boomers.

2.   B) Generation Z.

3.   C) Generation Y.

4.   D) baby boomers.

5.   E) baby busters.

 

Answer:  D

Explanation:  Companies that target boomers need to respond to their interests in health, fitness, retirement housing, financial planning, and appearance.

Difficulty: 3 Hard

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Apply

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

45) In a recent issue of AARP The Magazine, a print ad for State Farm Insurance annuities advises readers that “The company has helped you enjoy your time with the kids and it can now help you enjoy your time without them.” The ad is most likely targeted toward which generational cohort?

1.   A) echo-boomers

2.   B) Generation Xers

3.   C) Generation Yers

4.   D) baby boomers

5.   E) baby busters

 

Answer:  D

Explanation:  Baby boomers were born between 1946 and 1964, and being older, they often are receptive to products that focus on enjoying the next stages of life.

Difficulty: 3 Hard

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Apply

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

 

46) Generation X is defined as the generation of children born

1964.         A) between 1946 and 1964.

1965.         B) between WWI and WWII.

1966.         C) between 1965 and 1976.

1967.         D) between 1977 and 1994.

1968.         E) since the millennium.

 

Answer:  C

Explanation:  Key term definition—Generation X.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

47) The 50 million people born between 1965 and 1976, a period also known as the baby bust, are referred to as

1.   A) Generation X.

2.   B) millennials.

3.   C) Generation Y.

4.   D) Generation Z.

5.   E) baby boomers.

 

Answer:  A

Explanation:  Key term definition—Generation X.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

48) The generational cohort known as ________ was born during the baby bust era when the number of children born each year was declining.

1.   A) Generation Z

2.   B) Generation Y

3.   C) millennials

4.   D) Generation X

5.   E) baby boomers

 

Answer:  D

Explanation:  Generation X includes the 50 million people of the population born between 1965 and 1976. This period is also known as the baby bust, because the number of children born each year was declining.

Difficulty: 2 Medium

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

49) The generational cohort described as self-reliant, supportive of racial and ethnic diversity, better educated than previous generations, but having less net worth is

1.   A) Generation Z.

2.   B) Generation Y.

3.   C) millennials.

4.   D) Generation X.

5.   E) baby boomers.

 

Answer:  D

Explanation:  Generation X includes the 50 million people born between 1965 and 1976. These consumers are self-reliant, supportive of racial and ethnic diversity, and better educated than previous generations. In terms of net worth, Generation X is the first generation to have less than the previous generation.

Difficulty: 2 Medium

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

50) Generation X consumers are

1.   A) likely to rely on others.

2.   B) authoritative decision makers.

3.   C) very prone to extravagance.

4.   D) generally supportive of racial and ethnic diversity.

5.   E) poorly educated.

 

Answer:  D

Explanation:  Generation X includes the 50 million people born between 1965 and 1976. These consumers are self-reliant, supportive of racial and ethnic diversity, and better educated than previous generations.

Difficulty: 2 Medium

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

51) Generation X

1.   A) is the least healthy generation since the 1940s.

2.   B) accounts for the smallest percentage of consumer spending among the cohorts.

3.   C) is the largest segment of business travelers.

4.   D) is notable for its interest in distinctive, memorable, and personal experiences.

5.   E) is a label often used synonymously with the term “millennials.”

 

Answer:  C

Explanation:  Generation X includes the 50 million people born between 1965 and 1976. These consumers are self-reliant, supportive of racial and ethnic diversity, and better educated than previous generations. Generation X has become the largest segment of business travelers.

Difficulty: 2 Medium

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

52) In terms of business travel, for which generational cohort are ads regarding in-flight Wi-Fi and on-demand entertainment most likely trying to reach?

1.   A) Generation X

2.   B) baby boomers

3.   C) Generation Z

4.   D) baby busters

5.   E) Generation Y

 

Answer:  A

Explanation:  Generation X includes the 50 million people born between 1965 and 1976. These consumers are self-reliant, supportive of racial and ethnic diversity, and better educated than previous generations. Generation X is also replacing baby boomers as the largest segment of business travelers. In response, American Airlines is offering travelers in-flight Wi-Fi, entertainment on demand, and personal powerports.

Difficulty: 3 Hard

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Apply

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

53) Americans born between 1977 and 1994 are referred to as

1.   A) Generation X.

2.   B) baby boomers.

3.   C) Generation Y.

4.   D) baby busters.

5.   E) Generation Z.

 

Answer:  C

Explanation:  Key term definition—Generation Y.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

54) Generation Y is defined as the generation of children born

1.   A) between World War I and World War II.

2.   B) between 1946 and 1964.

3.   C) between 1965 and 1976.

4.   D) between 1977 and 1994.

5.   E) since the millennium.

 

Answer:  D

Explanation:  Key term definition—Generation Y.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

55) Generation Y is sometimes referred to as

1.   A) echo-boomers.

2.   B) baby boomers.

3.   C) baby busters.

4.   D) the revolution generation.

5.   E) Generation 25.

 

Answer:  A

Explanation:  Text term definition—echo-boom.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

56) The post-millennial generation that includes consumers born between 1995 and 2010 is known as

1.   A) echo busters.

2.   B) baby busters.

3.   C) the lost generation.

4.   D) the greatest generation.

5.   E) Generation Z.

 

Answer:  E

Explanation:  Text term definition—Generation Z.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

57) Members of Generation Z are most likely to influence

1.   A) furniture design.

2.   B) health care and insurance.

3.   C) retirement plans.

4.   D) e-textbooks.

5.   E) automobile design.

 

Answer:  D

Explanation:  Generation Z includes consumers born between 1995 and 2010. They embrace the broadest definitions of diversity and inclusivity to include race, ethnicity, the LGBT community, different body types, and those with physical challenges. They prefer a “natural” look, discover and learn online, and expect a seamless use of digital and physical aspects of the marketplace.

Difficulty: 2 Medium

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

58) ________ expect brands and companies to embrace social change, corporate social responsibility, and environmental stewardship, as well as profits.

1.   A) Members of Generation X

2.   B) Baby boomers

3.   C) Members of Generation Z

4.   D) Baby busters

5.   E) Millennials

 

Answer:  E

Explanation:  Millennials are technologically savvy, innovative, and ambitious. In addition, they are a generation that is determined to make the world a better place. They expect brands and companies to embrace social change, corporate social responsibility, and environmental stewardship, as well as profits.

Difficulty: 2 Medium

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

59) One way millennials hope to achieve their goal of making the world a better place is through

1.   A) working at “green” jobs.

2.   B) political activism.

3.   C) intergenerational dialogue.

4.   D) fiscal conservatism.

5.   E) educational reform.

 

Answer:  A

Explanation:  Millennials seek “green” jobs and want to work at companies that advocate good corporate citizenship, responsible capitalism, and “B-corp” status. They view themselves as part of a “positive business” movement that balances the interests of shareholders, employees, and society.

Difficulty: 1 Easy

Topic:  Environmental Influences on Marketing

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

60) For millennials, “positive business” involvement means

1.   A) engaging in free market economics with fair but limited regulations to manage exchange relationships.

2.   B) being part of a movement that balances the interests of shareholders, employees, and society.

3.   C) exploiting a nation’s natural resources for the betterment of its society.

4.   D) seeking advanced jobs in agriculture that emphasize economies of scale in farming and ranching.

5.   E) executing an aggressive strategy regarding oil and natural gas exploration to make the United States energy independent.

 

Answer:  B

Explanation:  Millennials, who are members of Generation Y, want to work at companies that advocate good corporate citizenship, responsible capitalism, and “B-corp” status. They view themselves as part of a “positive business” movement that balances the interests of shareholders, employees, and society.

Difficulty: 2 Medium

Topic:  Corporate Social Responsibility

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

61) All of the following statements are true except which?

1.   A) LEED stands for Leadership in Energy and Environmental Design.

2.   B) Today’s college graduates now seek green jobs that involve some aspect of social responsibility.

3.   C) Colleges of business have yet to establish sustainability course electives or environmental clubs.

4.   D) Many students want to be involved with organizations such as Net Impact to use business to improve the world.

5.   E) Millennials want to make a difference by making the world a better place.

 

Answer:  C

Explanation:  In the Making Responsible Decisions box, one example discussed a student’s choice to enroll at an educational institution where she could take a course on renewable energy.

Difficulty: 2 Medium

Topic:  Corporate Social Responsibility

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

62) Today, married households comprise ________ of the U.S. population.

1.   A) 10 percent

2.   B) 20 percent

3.   C) 48 percent

4.   D) 64 percent

5.   E) 75 percent

 

Answer:  C

Explanation:  In 1960, 75 percent of all households consisted of married couples. Today, that type of household is 48 percent of the population.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

63) Which of the following statements about the American household is most accurate?

1960.         A) The structure of the American household has not changed significantly since 1960.

1961.         B) With a drop in the divorce rate, almost 58 percent of households today are married couples with children.

1962.         C) The number of households with working fathers and “stay-at-home” moms has recently begun to increase again and makes up almost 25 percent of all American households.

1963.         D) One of the fastest-growing types of households are those with an adult child who has moved back home with his or her parents.

1964.         E) The percentage of married couples has increased from 50 percent in 1960 to 75 percent today.

 

Answer:  D

Explanation:  Some of the fastest-growing types of households are those with an adult child who has moved back home with his or her parents, those with unmarried partners, and those with same-sex partners.

Difficulty: 2 Medium

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

64) A family formed by merging two previously separated units into a single household is referred to as a

1.   A) cohort.

2.   B) blended family.

3.   C) merged household.

4.   D) reconstituted family.

5.   E) multigenerational household.

 

Answer:  B

Explanation:  Key term definition—blended family.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

65) A blended family is

1.   A) the result of the decline in divorce in recent years.

2.   B) a household with unmarried partners.

3.   C) a typical outcome of increased cohabitation.

4.   D) a family formed by merging two previously separated units into a single household.

5.   E) households formed with unrelated individuals.

 

Answer:  D

Explanation:  Key term definition—blended family.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

66) Increased longevity and increased economic independence may be causes of which trend pertaining to American households?

1.   A) low levels of remarriage among divorcees

2.   B) fewer households with unmarried partners

3.   C) an increase in the number of children per household

4.   D) the growth of gray divorce

5.   E) a decrease in blended families

 

Answer:  D

Explanation:  The likelihood that a couple will divorce exceeds 40 percent, and divorce among baby boomers—what is being called gray divorce—is increasing. The reasons for the increase of divorce in this age group may be related to increased longevity and increased economic independence.

Difficulty: 2 Medium

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

67) A major regional shift in the U.S. population toward the ________ states is under way.

1.   A) eastern

2.   B) west coast

3.   C) northern

4.   D) midwestern

5.   E) southern and western

 

Answer:  E

Explanation:  A major regional shift in the U.S. population toward southern and western states is under way. The most recent Census Bureau estimates indicate that the populations of Utah, Nevada, Idaho, and Florida grew at the fastest rates, while the population of Illinois declined at the greatest rate.

Difficulty: 2 Medium

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

68) Which of the following states experienced a decline in population as reported in the most recent Census Bureau estimate?

1.   A) Utah

2.   B) Florida

3.   C) Nevada

4.   D) Idaho

5.   E) Illinois

 

Answer:  E

Explanation:  A major regional shift in the U.S. population toward southern and western states is under way. The most recent Census Bureau estimates indicate that the populations of Utah, Nevada, Idaho, and Florida grew at the fastest rates, while the population of Illinois declined at the greatest rate.

Difficulty: 2 Medium

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

69) Today, 7 of the top 10 most populous cities in the United States are located

1.   A) along the east coast.

2.   B) near the Canadian border.

3.   C) along the west coast.

4.   D) in states that border Mexico.

5.   E) within the central “fly over” region of the United States.

 

Answer:  D

Explanation:  Nearly a century ago each of the top 10 most populous cities in the United States was within 500 miles of the Canadian border. Today, 7 of the top 10 are in states that border Mexico. Last year, Texas gained more people than any other state—its population increased by more than 432,000.

Difficulty: 2 Medium

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

70) Remote suburbs are called

1.   A) exurbs.

2.   B) ruralia.

3.   C) outstate residential.

4.   D) subdivisions.

5.   E) minor statistical areas.

 

Answer:  A

Explanation:  Key term definition—exurbs.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

71) Exurbs are

1.   A) statistical areas of at least 50,000 or more people.

2.   B) remote suburbs.

3.   C) statistical areas of at least 10,000 but less than 50,000 people.

4.   D) statistical areas that contains a population of 2.5 million or more.

5.   E) the combination of metropolitan statistical areas and micropolitan statistical areas.

 

Answer:  B

Explanation:  Key term definition—exurbs.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

72) A statistical area of at least one urbanized area of 50,000 or more people and adjacent territory that has a high degree of social and economic integration is referred to as a

1.   A) micropolitan statistical area.

2.   B) metropolitan statistical area.

3.   C) downtown statistical area.

4.   D) zip code.

5.   E) combined statistical area.

 

Answer:  B

Explanation:  Key term definition—metropolitan statistical area.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

73) A metropolitan statistical area refers to

1.   A) a statistical area that has at least one urban cluster of at least 10,000 but less than 50,000 people and adjacent territory that has a high degree of social and economic integration.

2.   B) a statistical area of 2.5 million people or more.

3.   C) a cluster of exurbs that function as a single unit due to the proximity of their geographic locations to an urbanized area.

4.   D) a highly urbanized area with a centrally located population of at least 1,000,000 people.

5.   E) a statistical area of at least one urbanized area of 50,000 or more people and adjacent territory that has a high degree of social and economic integration.

 

Answer:  E

Explanation:  Key term definition—metropolitan statistical area.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

74) A statistical area that has at least one urban cluster of at least 10,000 but less than 50,000 people and adjacent territory that has a high degree of social and economic integration is referred to as a

1.   A) micropolitan statistical area.

2.   B) metropolitan statistical area.

3.   C) consolidated metropolitan statistical area.

4.   D) megapolitan statistical area.

5.   E) metropolitan division.

 

Answer:  A

Explanation:  Key term definition—micropolitan statistical area.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

75) A micropolitan statistical area refers to

2.   A) a statistical area of 2.5 million people or more.

3.   B) a highly urbanized area with a centrally located population of at least 1,000,000 people.

4.   C) a cluster of exurbs that function as a single unit due to the proximity of their geographic locations to an urbanized area.

5.   D) a statistical area that has at least one urban cluster of at least 10,000 but less than 50,000 people and adjacent territory that has a high degree of social and economic integration.

6.   E) a statistical area of at least one urbanized area of 50,000 or more people and adjacent territory that has a high degree of social and economic integration.

 

Answer:  D

Explanation:  Key term definition—micropolitan statistical area.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

76) Approximately one in ________ U.S. residents is African American, Native American or Alaska Native, Asian American, or Native Hawaiian or Pacific Islander.

1.   A) ten

2.   B) seven

3.   C) five

4.   D) three

5.   E) two

 

Answer:  D

Explanation:  A notable trend is the changing racial and ethnic composition of the U.S. population. Approximately one in three U.S. residents is African American, Naive American or Alaska Native, Asian American, or Native Hawaiian or Pacific Islander.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

77) Of the following, which racial or ethnic group has the greatest economic impact in the United States in terms of their buying power?

1.   A) Asian Americans

2.   B) Hispanics

3.   C) African Americans

4.   D) Native American and other native populations

5.   E) Indian immigrants (from India)

 

Answer:  B

Explanation:  As a group, Hispanics have the greatest economic impact in the United States in terms of their buying power, spending $1.3 trillion each year. African Americans, the second-largest group, are estimated to spend $1.2 trillion, while Asian Americans spend $825 billion.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

78) Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races are referred to as ________ marketing programs.

1.   A) panethnic

2.   B) generational

3.   C) cross-cultural

4.   D) multicultural

5.   E) regional

 

Answer:  D

Explanation:  Key term definition—multicultural marketing.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

79) Multicultural marketing refers to combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different

1.   A) races or ethnic groups.

2.   B) nations.

3.   C) religions.

4.   D) generational cohorts.

5.   E) genders.

 

Answer:  A

Explanation:  Key term definition—multicultural marketing.

Difficulty: 1 Easy

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

80) Recognized for excellence by Advertising Age, Alma creates advertising to reach diverse segments by searching “for that intangible fiber that touches the lives of consumers creating relevant and unique business-building communication ideas.” Alma has created Hispanic campaigns for McDonald’s, Sprint, and Clorox as a part of their programs incorporating

1.   A) psychographic differences.

2.   B) population inputs.

3.   C) multicultural marketing.

4.   D) a value consciousness.

5.   E) macroeconomics.

 

Answer:  C

Explanation:  Many companies are developing multicultural marketing programs, which are combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races.

Difficulty: 3 Hard

Topic:  Demographic Environment

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Apply

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

81) The set of values, ideas, and attitudes that are learned and shared among the members of a group is referred to as

1.   A) customs.

2.   B) morals.

3.   C) norms.

4.   D) culture.

5.   E) ethics.

 

Answer:  D

Explanation:  Key term definition—culture.

Difficulty: 1 Easy

Topic:  Sociocultural Influences

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

82) Culture refers to the

1.   A) moral and ethical beliefs of a family passed down from generation to generation.

2.   B) set of values, ideas, and attitudes that are learned and shared among the members of a group.

3.   C) pastimes associated with the fine arts, such as ballet, music, and theater.

4.   D) standard or pattern of behaviors that is typical or expected of a group.

5.   E) description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.

 

Answer:  B

Explanation:  Key term definition—culture.

Difficulty: 1 Easy

Topic:  Sociocultural Influences

Learning Objective:  03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation