Deck 3: Understanding the Marketplace Consumer Behaviour

Question 1

Bill is 40 years old.He is pragmatic, self-reliant, and does not conform to the rules of society.He shares these characteristics with which generational cohort?

A)baby boomers
B)generation Y
C)generation X
D)tweens
E)seniors

Answer 1

C

Question 2

Car manufacturers are keenly aware of announced cuts or increases in rivals' production volume, sales, and sales incentives (e.g., rebates and low interest rates on financing).They use this information to plan their own marketing, pricing, and production strategies.This is an example of:

A)SWOT analysis.
B)marketing analysis.
C)location intelligence.
D)trend analysis.
E)competitive intelligence.

Answer 2

E

Question 3

Which of the following is also referred to as the "echo boom" generation?

A)tweens
B)generation Y
C)generation X
D)baby boomers
E)seniors

Answer 3

B

Question 4

The marketing of toothpaste is done differently for different age groups and the branding of toothpaste for children and adults differ from each other.Toys are also marketed keeping in mind the age-based segments.This is an example of using to market different products.

A)firmographics
B)allographics
C)demographics
D)ergographics
E)lithographics

Question 5

Misha and Jenny are both 11 and spend their money mainly on food and drinks, digital music players, cellphones, computers and clothing.Which of the following categories do they belong to?

A)tweens
B)generation Y
C)generation X
D)baby boomers
E)seniors

Question 6

Visible nuances, such as artifacts, behaviour, dress, symbols, physical settings, ceremonies, language differences, and more subtle aspects, which are trickier to identify, are all part of a:

A)creative culture.
B)country's culture.
C)cross culture.
D)corporate culture.
E)co-culture.

Question 7

Jack is 30 years old.He emphasizes work-life balance, celebrates diversity, and is self-reliant and individualistic.He shares these characteristics with which generational cohort?

A)baby boomers
B)generation Y
C)generation X
D)tweens
E)seniors

Question 8

The fact that Canada is a nation with two official languages and that humour is an integral part of its arts scene is an example of:

A)creative culture.
B)country culture.
C)cross culture.
D)corporate culture.
E)co-culture.

Question 9

The area in which people live in a particular country affects the way they react to different cultural rituals, which is referred to as:

A)creative culture.
B)country culture.
C)cross culture.
D)counter culture.
E)regional subculture.

Question 10

The characteristics of human populations and segments, especially those used to identify consumer markets, such as age, gender, income, race, ethnicity, and education are summed up by the term:

A)firmographics.
B)allographics.
C)demographics.
D)ergographics.
E)lithographics.

Question 11

A group of people of the same generation who typically have similar purchase behaviours because they have shared experiences and are in the same stage of life is the definition of:

A)generational cohort.
B)generational gap.
C)generationism.
D)intergenerationality.
E)generational accounting.

Question 12

Which of the following holds true for the term gen Y?

A)Generational cohort of people between the ages of 13 and 32 and the biggest cohort since the original postwar baby boom
B)Generational cohort of people born after World War II who are between the ages of 48 and
66
C)Generational cohort consisting of people aged 65 and older
D)Generational cohort of people who are not quite teenagers but are not young children either
(ages 9 to 12)
E)Generational cohort of people between the ages of 36 and 47

Question 13

Which of the following holds true for the term tweens?

A)Generational cohort of people between the ages of 13 and 32 and the biggest cohort since the original postwar baby boom
B)Generational cohort of people born after World War II who are between the ages of 48 and
66
C)Generational cohort consisting of people aged 65 and older
D)Generational cohort of people who are not quite teenagers but are not young children either
(ages 9 to 12)
E)Generational cohort of people between the ages of 36 and 47

Question 14

Jack is 50 years old and is idealistic, conforms to rules, and believes in mass movements.He shares these characteristics with which generational cohort?

A)baby boomers
B)generation Y
C)generation X
D)tweens
E)seniors

Question 15

Mary, Jane, and Brad were all born after World War II.They are individualistic.Leisure time is a high priority for them.They have an obsession with maintaining their youth and they love rock 'n' roll.These characteristics are shared by many people who belong to that particular era.This is an example of:

A)generational cohort.
B)generational gap.
C)generationism.
D)intergenerationality.
E)generational accounting.

Question 16

Milky produces different products for different age groups.It has a product for children, another product for tweens, and also one for older people.This example of market segmentation is based on:

A)firmographics.
B)allographics.
C)demographics.
D)ergographics.
E)lithographics.

Question 17

Company X wanted to determine the development strategy of a rival company.Tapping into some online discussion groups, Company X came to know that its rival had posted 20 job openings online.This posting was indicative of the rival company's development strategy.Company X used to collect and synthesize information about its rival.

A)SWOT analysis
B)marketing analysis
C)location intelligence
D)trend analysis
E)competitive intelligence

Question 18

Which of the following holds true for the term gen X?

A)Generational cohort of people between the ages of 13 and 32 and the biggest cohort since the original postwar baby boom
B)Generational cohort of people born after World War II who are between the ages of 48 and
66
C)Generational cohort consisting of people aged 65 and older
D)Generational cohort of people who are not quite teenagers but are not young children either
(ages 9 to 12)
E)Generational cohort of people between the ages of 36 and 47

Question 19

When firms collect and synthesize information about their position with respect to their rivals, this is called:

A)SWOT analysis.
B)marketing analysis.
C)location intelligence.
D)trend analysis.
E)competitive intelligence.

Question 20

Canadian national food includes poutine and butter tarts.Canada is the world's largest producer of maple syrup.The music of Canada reflects the many influences that have shaped the country.The official symbols of Canada include the maple leaf and the beaver.All these together are an example of:

A)creative culture.
B)country culture.
C)cross culture.
D)counter culture.
E)sub culture.

Question 21

Megan and John have been married for 10 years.Megan is the vice-president of a bank and John is an investment banker.They enjoy a combined income of more than $100,000.Megan loves art.She buys paintings of renowned painters in auctions all over the world.Which of the following categories do they belong to?

A)under class consumers
B)upper class consumers
C)working class consumers
D)middle class consumers
E)lower class consumers

Question 22

Which of the following holds true for the term seniors?

A)Generational cohort of people between the ages of 13 and 32 and the biggest cohort since the original postwar baby boom
B)Generational cohort of people born after World War II who are between the ages of 48 and
66
C)Generational cohort consisting of people aged 65 and older
D)Generational cohort of people who are not quite teenagers but are not young children either
(ages 9 to 12)
E)Generational cohort of people between the ages of 36 and 47

Question 23

Mary, Jane, and Brad were all born after World War II.Mary is 60, Jane is 62, and Brad is 65.They are individualistic.Leisure time represents a high priority for them.They have an obsession with maintaining their youth and love rock 'n' roll.These characteristics are shared by many people who belong to that particular era.Which of the following categories do they belong to?

A)tweens
B)generation Y
C)generation X
D)baby boomers
E)seniors

Question 24

Which of the following is a characteristic of people belonging to the baby boomer generation?

A)They are individualistic.
B)They are workaholics.
C)They abhor youth, which they equate with immaturity.
D)They love pop.
E)They are gutted by a feeling of economic and psychological insecurity.

Question 25

Latchkey kids are those children who:

A)were left orphaned after the death of their biological parents.
B)grew up in foster homes because of the inability of their parents to take care of them.
C)grew up in homes with a stepmother or a stepfather.
D)grew up in homes in which both parents worked.
E)grew up in single-parent homes.

Question 26

Which of the following holds true for the term baby boomers?

A)Generational cohort of people between the ages of 13 and 32 and the biggest cohort since the original postwar baby boom
B)Generational cohort of people born after World War II who are between the ages of 48 and
66
C)Generational cohort consisting of people aged 65 and older
D)Generational cohort of people who are not quite teenagers but are not young children either
(ages 9 to 12)
E)Generational cohort of people between the ages of 36 and 47

Question 27

Which of the following holds true for working class consumers?

A)Their family income is usually between $20,000 and $30,000.
B)They rely on assistance to cover their basic needs.
C)They are primarily into business rather than white-collar jobs.
D)They have high discretionary incomes.
E)Their spending patterns are not influenced by economic conditions.

Question 28

Jack is a teacher and his wife, Meg, works as an assistant in a research laboratory.They have a combined income of $68,000.They have a house on mortgage and take long vacations once every four years.They are value-conscious and shop in stores such as The Gap, Hollister, American Eagle Outfitters, and Old Navy.Which of the following categories do they belong to?

A)under class consumers
B)upper class consumers
C)working class consumers
D)middle class consumers
E)lower class consumers

Question 29

Philip lives with his wife Emma and four children in a rented single-room apartment.His wife works as a babysitter and also helps at the local community centre for a couple of hours a week.Philip is unemployed and subsists on social security provided by the government.They have an annual income of $15,000.Which of the following categories do they belong to?

A)under class consumers
B)upper class consumers
C)working class consumers
D)middle class consumers
E)lower class consumers

Question 30

What has been the effect of changing gender roles in society on marketers?

A)absence of the father in commercials for children's goods
B)increase in advertisements that show mothers alone with the kids
C)gender neutrality in the positioning of products
D)discouraging transcending gender boundaries
E)portraying women as more competent than men

Question 31

Joe is 65.He is highly individualistic and invests in health and wellness education and products.He loves vanity products and services that help him maintain his youth.Joe belongs to the category of:

A)gen X.
B)gen Y.
C)tweens.
D)baby boomers.
E)seniors.

Question 32

Bruce is a part-time janitor.Maria washes dishes in a restaurant.They have a combined income of $30,000.They are barely able to make ends meet because they have six small children.Which of the following categories do they belong to?

A)under class consumers
B)upper class consumers
C)working class consumers
D)middle class consumers
E)lower class consumers

Question 33

Which of the following holds true for ethnic groups who have migrated to Canada?

A)In general, ethnic Canadians spend less than their white counterparts on big-ticket items such as cars, clothing, and home furnishings.
B)South Asian and Chinese immigrants are typically young, educated, and wealthy.
C)Currently half of all visible minorities in Canada are under 14 years.
D)They account for nearly 10 percent of Canada's population growth.
E)Russians represent the fastest-growing ethnic group.

Question 34

Venus and Jake have been married for three years.Venus is 30 years old and Jake is 28.They are Internet-and technology-savvy and love digital electronics.They use the Internet at work for personal reasons and expect a healthy option at fast-food restaurants.Which of the following categories do they belong to?

A)tweens
B)generation Y
C)generation X
D)baby boomers
E)seniors

Question 35

Dina is 66 years old.She suffers from arthritis and needs special attention.At times when she is confined to bed, she passes time by browsing the Internet.She uses it for emailing, searching for travel information, and banking electronically.She wants to shop in convenient locations.Which of the following categories does she belong to?

A)tweens
B)generation Y
C)generation X
D)baby boomers
E)seniors

Question 36

Which of the following is also referred to as the first generation of "latchkey kids"?

A)tweens
B)generation Y
C)generation X
D)baby boomers
E)seniors

Question 37

Which of the following holds true for upper class consumers?

A)Their family income is usually between $20,000 and $30,000.
B)They rely on assistance to cover their basic needs.
C)They are primarily into business rather than white-collar jobs.
D)They tend to be careful about their spending and are often value-conscious.
E)Their spending patterns are not influenced by economic conditions.

Question 38

Which of the following holds true for under class consumers?

A)Their family income is usually between $20,000 and $30,000.
B)They rely on assistance to cover their basic needs.
C)They are primarily into business rather than white-collar jobs.
D)They have high discretionary incomes.
E)Their spending patterns are not influenced by economic conditions.

Question 39

Megan is 40 years old and heads an advertising firm.She grew up in a home in which both parents worked.Although Megan possesses considerable spending power, she is much less interested in shopping than her parents and is far more cynical, which tends to make her an astute consumer.Megan takes a long vacation every summer and travels to different parts of the world.Which of the following categories does she belong to?

A)tweens
B)generation Y
C)generation X
D)baby boomers
E)seniors

Question 40

Which of the following holds true for middle class consumers?

A)Their family income is usually between $20,000 and $30,000.
B)They rely on assistance to cover their basic needs.
C)They are primarily into business rather than white-collar jobs.
D)They tend to be careful about their spending and are often value-conscious.
E)Their spending patterns are not influenced by economic conditions.

Question 41

The persistent increase in the prices of goods and services is called:

A)deflation.
B)foreign currency fluctuation.
C)inflation.
D)recession.
E)shoe leather cost.

Question 42

Which of the following trends have increased the difficulty that marketers face when they try to grab the attention of consumers?

A)Canadians have more time for leisure and to spend with family.
B)The attention of multitasking consumers is divided.
C)Consumers must choose what shows they want to watch from fewer programs.
D)Kids prefer to spend more time on physical sports than electronic gadgets.
E)Expanding minority groups do not understand the English language.

Question 43

Suppose C $1.00 was worth US $0.809.After nine months, the Canadian dollar increased to $1.50.This is an example of:

A)deflation.
B)foreign currency fluctuation.
C)inflation.
D)recession.
E)shoe leather cost.

Question 44

The changes in the value of a country's currency relative to the currency of another country that can influence consumer spending is called:

A)deflation.
B)foreign currency fluctuation.
C)inflation.
D)recession.
E)shoe leather cost.

Question 45

Bill is part of a program that collects biodegradable waste or compostable materials that would otherwise be included in kitchen and yard waste.This material is collected by the municipality and used to make compost for gardening.This is called a program.

A)green hosting
B)green washing
C)carbon credit
D)pink washing
E)green bin

Question 46

Mekong Airlines uses special technology to reduce the number of lost bags and make it easier to reroute bags if passengers change their flight plans.Which of the following technologies does it use to track passenger bags?

A)RuBee
B)RFID
C)biometrics
D)electrodynamic induction
E)Supranet

Question 47

Which of the following happens during a recession?

A)the stock market rises
B)unemployment rises
C)business and consumer confidence rises
D)consumer spending rises
E)purchasing power increases

Question 48

Which of the following is used by retail firms to track an item from the moment it is manufactured, through the distribution system, to the retail store, and into the hands of the final consumer?

A)RuBee
B)RFID
C)biometrics
D)resonant inductive coupling
E)Supranet

Question 49

Ecolight has developed a compact fluorescent light bulb that has super long life and saves $20 in energy costs over its five-year lifetime.It uses less power and has a longer rated life (8 to 15 times) than a normal bulb.This is an example of:

A)green bin.
B)green washing
C)green marketing.
D)pink washing.
E)carbon credit.

Question 50

In Germany in 1923, prices doubled every two days and workers were paid twice a day so they could buy food and goods before prices rose again.This is an example of:

A)deflation.
B)foreign currency fluctuation.
C)inflation.
D)recession.
E)shoe leather cost.

Question 51

A hotel introduces eco-rooms that have energy-efficient mini-bars, organic bed linen, and napkins made of recycled papers.The rooms are fitted with CFLs or LEDs to conserve energy.This is an example of:

A)a green bin.
B)green washing.
C)green marketing.
D)pink washing.
E)a carbon credit.

Question 52

Consumers are encouraged to recycle their food and yard waste to make compost for gardening in programs.

A)green hosting
B)green washing
C)carbon credit
D)pink washing
E)green bin

Question 53

The pricing that is intended to drive competitors out of the market or keep competitors from entering the market by fixing very low prices is called:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 54

A fast-food joint decided to raise the price of its cheeseburger from $1 to $2.It also removed accompaniments that were served with the cheeseburger.This was due to increasing commodity prices.This is an example of:

A)deflation.
B)foreign currency fluctuation.
C)inflation.
D)recession.
E)shoe leather cost.

Question 55

A situation in which sellers collude to set prices in response to bids or quotations for products is called:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 56

The two fastest-growing ethnic groups who have migrated to Canada are the:

A)Russians and the South Americans.
B)Europeans and the South Americans.
C)Arabs and the Africans.
D)Chinese and the South Asians.
E)Africans and the Europeans.

Question 57

Which of the following holds true for the impact of government regulations on marketers?

A)It drastically lessens the opportunity for marketers to sell more of their products.
B)It creates an uneven playing field for competition.
C)It contributes to the creation of legal irregularities in the market.
D)It increases the cost of compliance.
E)It promotes inflationary tendencies.

Question 58

A period of economic downturn when the economic growth of a country is negative for at least a couple of consecutive quarters is called:

A)deflation.
B)foreign currency fluctuation.
C)inflation.
D)recession.
E)shoe leather cost.

Question 59

The fact that many of today's commercials for children's gear now include Dad interacting with the kids and being involved in purchase decisions reflects:

A)that men earn more money than women.
B)the increasing clarity of gender roles.
C)the importance that marketers are giving to changing gender roles.
D)that higher levels of education lead to better jobs and higher incomes.
E)the change in the gender composition of a country.

Question 60

The strategic effort made by firms to supply customers with environmentally friendly merchandise is called:

A)a green bin.
B)green washing.
C)green marketing.
D)pink washing.
E)a carbon credit.

Question 61

A seller refuses to sell to other channel members unless that member agrees to buy solely from that particular seller.This is an example of:

A)price fixing.
B)exclusive dealing.
C)predatory pricing.
D)misleading advertising.
E)refusal to deal.

Question 62

Four companies dealing in dairy products admitted that they had exchanged information to make shoppers pay more for milk and cheese.Two of the companies had increased the price of milk.The other two had passed on sensitive information about prices to their supposed rivals.This is an example of:

A)price fixing.
B)price discrimination.
C)predatory pricing.
D)referral selling.
E)resale price maintenance.

Question 63

Suppose the only newspaper in a town refuses to carry advertisements from companies that approach the local radio station to run ads.The newspaper monitors the radio ads and stops doing business with any establishment that runs ads on the radio.This is an example of:

A)price fixing.
B)exclusive dealing.
C)predatory pricing.
D)misleading advertising.
E)refusal to deal.

Question 64

Beck wanted to join a gym but was worried about the cost.The gym offered her a 100-percent rebate on a one-year membership if she gave the gym the names and telephone numbers of five of her friends.This is an example of:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 65

Brian devised a scheme.He instructed a co-conspirator to submit sham price quotations from dormant companies for a bulletproof vest contract.The sham price quotations were submitted with intentionally increased prices so that one company, a Kuwaiti general trading firm, would win the contract at a lower price.The owner of the Kuwaiti general trading firm then authorized Brian to negotiate and receive all funds related to the contract.This is an example of:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 66

A university publishes a journal, which is subscribed to by individuals and bookshops.The editors have recommended $20.00 as the retail price.The university also maintains that the journal cannot be sold at a discount.The university has threatened to cease supplying anyone who sells for less than the recommended retail price.This is an example of:

A)price fixing.
B)price discrimination.
C)predatory pricing.
D)referral selling.
E)resale price maintenance.

Question 67

A situation in which incentives are offered to consumers to provide the names of other potential consumers is called:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 68

A hotel management institute develops a training program for students.The fee for the training program is $1,000.The institute offers to share the training program with other colleges.One of the terms of the contract is that the colleges will not offer the program to their students for less than $1,000.This is an example of:

A)price fixing.
B)price discrimination.
C)predatory pricing.
D)referral selling.
E)resale price maintenance.

Question 69

Company X required people to photocopy a letter and send it to 100 other people.The letter contained a list of 10 names and addresses.An individual was required to send $1 to the first 10 names on the list.After that she had to place their names and addresses at the bottom of the list.She then had to send the new list to 100 people.This is an example of:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 70

What is the name of the marketing practice in which a company seeks to influence the price at which a product is sold?

A)price fixing
B)price discrimination
C)predatory pricing
D)referral selling
E)resale price maintenance

Question 71

Four companies supplied paints to a massive housing reconstruction program.There were 200 contracts distributed over 10 years.Each company won 25 percent of the contract each year.This is an example of:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 72

Suppose a country allows millions of extra barrels of oil into the market to push prices downward.This would squeeze smaller oil producers out of the market and expand the country's own market share.It would also help limit future production, which ultimately would help support higher prices.This act could be termed as:

A)price fixing.
B)price discrimination.
C)predatory pricing.
D)referral selling.
E)resale price maintenance.

Question 73

Schemes in which salespersons are paid to recruit other salespeople, and each new salesperson pays for the right to recruit other salespeople, with some of that money going to earlier recruiters is called:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 74

A company sells a mattress that it claims promotes good health.It also convinces customers to become part of a club where they receive commissions if they get other people to join the club or buy mattresses.This is an example of:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 75

A car sales showroom displays a basic car with a very low price tag.Once the customer is interested, the salesperson persuades him to buy a more expensive model.This is an example of:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 76

A software company released its web browser for free.As a result, other software companies were forced to release their own web browser for free in order to stay in the market.This is an example of:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 77

A company charges more per bottle when consumers buy bigger bottles of shampoo.It works on the premise that people who buy small packs of shampoo are price sensitive.Therefore, the company offers them discounts of up to 70 percent.If a customer buys shampoo in bottles, she ends up paying up more per millilitre.This is an example of:

A)price fixing.
B)price discrimination.
C)predatory pricing.
D)referral selling.
E)resale price maintenance.

Question 78

A driving school charges more to teach women drivers.The excuse is that it has "special driving instructors" for women, who understand women's driving styles and customize their lessons.This is an example of:

A)price fixing.
B)price discrimination.
C)predatory pricing.
D)referral selling.
E)resale price maintenance.

Question 79

An automobile company published an advertisement which said that prices for the latest model on offer started at $10,000 with an interest rate of 10 percent.The ad showed the logo and picture of a new model.When an interested customer spoke with the authorized dealer mentioned in the ad, he was informed that the bargain price was not for the latest model, but for the older model.This is an example of:

A)price fixing.
B)price discrimination.
C)predatory pricing.
D)misleading advertising.
E)resale price maintenance.

Question 80

Kelly ordered a computer from Modern Computers listed at $600.But she found that since that particular machine was not available, she was sold another one priced at $1,352.The PC maker then resisted her efforts to resolve the problem.This is an example of:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.