Deck 3: Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

Question 1

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?

A) social
B) economic
C) technological
D) competitive
E) regulatory

Answer 1

E

Question 2

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

A) living standards
B) social classes
C) cohorts
D) ethics
E) demographic characteristics

Answer 2

E

Question 3

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

A) significant trend analysis.
B) organizational scanning.
C) environmental scanning.
D) a SWOT analysis.
E) marketing intelligence.

Answer 3

C

Question 4

Facebook has approximately what fraction of the world's population as customers?

A) one-half
B) one-third
C) one-quarter
D) one-fifth
E) one-seventh

Question 5

The purpose of environmental scanning is to

A) uncover causes of trends in the marketplace.
B) uncover trends in the workplace.
C) stop unhelpful trends in the marketplace, and speed helpful ones.
D) stop unhelpful trends in the workplace, and speed helpful ones.
E) identify and interpret trends in the marketplace.

Question 6

Using smartphones, people 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, Google, and others. As a result, customers often want to replace their existing smartphones with new models every two years or more often, even if their existing phones still work. This increase in demand is due mostly to changes in ________, an environmental force.

A) competition
B) social culture
C) technology
D) regulations
E) the economy

Question 7

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.

A) optimized its distribution by adding local outlets in grocery stores
B) noticed the change in the demographics of coffee and tea drinkers in general
C) added more in-store displays
D) shifted funds from product development to advertising
E) tracked, as part of its ongoing environmental scanning activities, the percentage of households with single cup brewers

Question 8

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

A) economic.
B) competitive.
C) technological.
D) social.
E) regulatory.

Question 9

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

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.
B) Technological advances in data storage, server speed, and software integration have made Facebook increasingly fast and convenient.
C) Its rivalry with Google, Twitter, and Snapchat and new social networks encourage rapid expansion.
D) The cost of wireless connectivity and smartphones rapidly declined and Internet access expanded, which increasingly made social networking affordable for more people.
E) People increasingly look for new ways to communicate, obtain information, and offer opinions.

Question 10

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?

A) economic, since few can afford a newspaper today
B) competitive, resulting from new, smaller local newspapers that are flourishing
C) technological, since high-speed printing presses have become more easy to use
D) social, resulting from changing consumer preferences for information delivered online
E) regulatory, since the government provides tax incentives for paper-based products

Question 11

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

A) Environmental scanning changes the marketing environment.
B) Environmental scanning identifies and interprets potential trends.
C) Environmental scanning should be done about every five years.
D) Environmental scanning focuses primarily on ecological factors.
E) It is too costly and there is too much information generated from environmental scanning to make it viable for small firms.

Question 12

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 and augmented reality, and the surging scrutiny regarding the collection and use of consumer data.

A) profits
B) responsibilities
C) idealisms
D) codes
E) trends

Question 13

Environmental scanning refers to

A) assessing any possible negative impact a firm's activities might have on the local ecology.
B) continually acquiring information on events occurring outside the organization to identify and interpret potential trends.
C) setting up a regular schedule to assess the performance of different divisions within a firm.
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.
E) requiring all employees to spend time outside the office to avoid the "ivory tower" syndrome.

Question 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?

A) social
B) economic
C) technological
D) competitive
E) regulatory

Question 15

The demographic characteristics of a population and its culture are called

A) social forces.
B) economic forces.
C) consumer forces.
D) attitudinal forces.
E) market forces.

Question 16

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?

A) social
B) economic
C) technological
D) competitive
E) regulatory

Question 17

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?

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.
B) Millennials are becoming increasingly important in the workplace.
C) The local community has seen a rise in dual-income households.
D) By the year 2025, robotics will play a major role in surgical procedures.
E) Twenty percent of the local population is of Hispanic origin, but that number is expected to grow during the next decade.

Question 18

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

A) a reactive strategy that would impact the competitive environmental force.
B) a proactive maneuver to manipulate and impact the social environmental force.
C) a positive result from regulatory and economic environmental forces.
D) a positive response to a technological environmental force.
E) a negative impact as a result of adverse competitive, regulatory, and technological environmental forces.

Question 19

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

A) competitive
B) economic
C) regulatory
D) behavioral
E) social

Question 20

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

A) Changes in social forces can have a dramatic impact on marketing strategy.
B) Social forces within an organization motivate employees to improve their productivity.
C) Social forces determine all of the other environmental forces that affect an organization.
D) Of all the environmental forces, social forces are the easiest for a marketer to manipulate.

Question 21

The change in the growth of the world's population is called the

A) population contraction.
B) population inversion.
C) population migration.
D) population explosion.
E) population eruption.

Question 22

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

A) consumer group profiling.
B) demographics.
C) behavioral analysis.
D) psychographics.
E) statistical analysis.

Question 23

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 ________ force impacting the marketing environment.

A) an economic
B) a competitive
C) a technological
D) a social
E) a regulatory

Question 24

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

A) 273 million.
B) 314 million.
C) 323 million.
D) 359 million.
E) 414 million.

Question 25

More is a publication designed to appeal to women aged 40 and over. Demand for such magazines would be most affected by changing ________ characteristics in the marketing environment.

A) cultural
B) behavioral
C) psychographic
D) occupational
E) demographic

Question 26

The population explosion has occurred

A) primarily in the developing countries in Asia and Africa.
B) fairly evenly throughout the world.
C) primarily in the United States due to high birth rates and immigration.
D) primarily in the countries of the European Union due to high birth rates and immigration.
E) primarily in developed countries due to superior economic, infrastructure, and health care conditions.

Question 27

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 power ports. This is an example of how ________ forces impact the marketing environment.

A) economic
B) competitive
C) social
D) technological
E) regulatory

Question 28

The country expected to have the largest population in 2050 is

A) the United States.
B) India.
C) China.
D) Russia.
E) Brazil.

Question 29

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

A) a new consumer protection law
B) an increase in Asian immigration
C) an introduction of advanced technology
D) a decrease in consumer incomes
E) a new international firm exporting to the United States

Question 30

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

A) income
B) age
C) occupation
D) density
E) ethnicity

Question 31

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

A) the grey generation.
B) millennials.
C) Generation Y.
D) baby boomers.
E) Generation X.

Question 32

The most recent estimates indicate that the population of the world today is about

A) 3.9 billion.
B) 5.2 billion.
C) 7.4 billion.
D) 8.2 billion.
E) 9.5 billion.

Question 33

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

A) cultural
B) psychographic
C) geographic
D) demographic
E) economic

Question 34

Projections show that the population is

A) growing rapidly in North America.
B) declining sharply in Australia.
C) decreasing in Africa.
D) increasing in India.
E) increasing in Eastern Europe.

Question 35

Demographics refer to

A) the depiction of a population according to its core values or cultural beliefs and their rate of change.
B) an objective measurement of a person's likelihood to purchase a product or service.
C) the psychological profile of prospective consumers.
D) the density of a population in a geographic area.
E) the description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.

Question 36

Generally, the U.S. population is becoming

A) smaller, younger, and more diverse.
B) smaller, older, and more diverse.
C) larger, younger, and less diverse.
D) larger, younger, and more diverse.
E) larger, older, and more diverse.

Question 37

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

A) life expectancy (the average number of years a population lives from birth)
B) immigration (the number of people who enter a country for the purpose of permanent residence)
C) population density (the total number of people per square mile/kilometer)
D) birth rate (the number of births during a specified time period)
E) death rate (the number of deaths during a specified time period)

Question 38

By 2050, the world's population is expected to be

A) 2 billion.
B) 4.7 billion.
C) 6.1 billion.
D) 7.9 billion.
E) 9.8 billion.

Question 39

An important social trend is the continued concern for health and well-being in the United States. This is most likely evidenced by which of the following?

A) the increased sales of Cigar Aficionado magazine.
B) the introduction of Lay's Kettle Cooked potato chips, which have 40 percent less fat than regular potato chips.
C) the opening of more Starbucks coffee boutiques in supermarkets.
D) the upsizing of menu items at fast-food restaurants.
E) the introduction of virtual reality headsets such as the Oculus Rift.

Question 40

Baby boomers can be defined as the generation born

A) between 1918 and 1945.
B) between 1946 and 1964.
C) between 1965 and 1976.
D) between 1977 and 1994.
E) since 1995.

Question 41

Generation X is defined as the generation of children born

A) between 1946 and 1964.
B) between World War I and World War II.
C) between 1965 and 1976.
D) between 1977 and 1994.
E) since the millennium.

Question 42

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

A) Generation Z
B) baby busters
C) Generation Y
D) the greatest generation
E) baby boomers

Question 43

Members of Generation Y, sometimes known as ________, are interested in sustainability, including sustainable campus communities.

A) activists
B) sustainers
C) progressives
D) reformers
E) millennials

Question 44

Members of Generation Y are more likely than other generational cohorts to influence

A) luxury air travel.
B) health care and insurance.
C) retirement plans.
D) sports.
E) automobile design.

Question 45

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

A) Generation Z
B) Generation Y
C) millennials
D) Generation X
E) baby boomers

Question 46

Generation Y is considered part of the

A) echo-boom.
B) baby boom cohort.
C) baby bust.
D) the revolution generation.
E) Generation 25.

Question 47

Generation Y is defined as the generation of children born

A) between World War I and World War II.
B) between 1946 and 1964.
C) between 1965 and 1976.
D) between 1977 and 1994.
E) since the millennium.

Question 48

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

A) echo-boomers.
B) Generation Z.
C) Generation Y.
D) baby boomers.
E) baby busters.

Question 49

The 50 million people born between 1965 and 1976, also called the ________, refers to Generation X.

A) Generation Y
B) baby bust
C) millennials
D) baby boomers
E) Generation Z

Question 50

Millennials are technologically savvy, innovative, ambitious, and determined to make the world a better place. A major way they hope to achieve their goal is through

A) environmental responsibility.
B) political activism.
C) intergenerational dialogue.
D) fiscal conservatism.
E) educational reform.

Question 51

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?

A) echo-boomers
B) Millennials
C) Generation Yers
D) baby boomers
E) baby busters

Question 52

Though definitions are inconsistent, Generation Y, especially its younger members, are frequently associated with

A) the echo bust.
B) the baby bust.
C) the lost generation.
D) the baby boomerang.
E) millennials.

Question 53

Generation X

A) is the least healthy generation since the 1940s.
B) accounts for the smallest percentage of consumer spending among generational cohorts.
C) is now the largest segment of business travelers.
D) is notable for its interest in distinctive, memorable, and personal experiences.
E) is a label often used synonymously with the term millennials.

Question 54

Americans born between 1977 and 1994 are referred to as

A) Generation X.
B) baby boomers.
C) Generation Y.
D) baby busters.
E) Generation Z.

Question 55

All of the following statements are true except which?

A) LEED stands for Leadership in Energy and Environmental Design.
B) Today's college graduates now seek green jobs that involve some aspect of social responsibility.
C) Colleges of business have yet to establish sustainability course electives or environmental clubs.
D) Many students want to be involved with organizations such as Net Impact to use business to improve the world.
E) Millennials want to make a difference by making the world a better place.

Question 56

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

A) They are beginning to have children.
B) They are getting their high school and college educations.
C) They are currently retiring or nearing retirement age.
D) They are just being born.
E) They are beginning their primary school educations.

Question 57

________ is the generational cohort described as self-reliant, supportive of racial and ethnic diversity, better educated than previous generations, and not prone to extravagance.

A) Generation Z
B) Generation Y
C) Millennials
D) Generation X
E) Baby boomers

Question 58

According to population estimates, ________ have recently surpassed baby boomers as the largest living generation, with 75 million people.

A) the gray market.
B) baby busters.
C) Generation X.
D) the baby boomerang.
E) millennials.

Question 59

For millennials, "positive business" involvement means

A) engaging in free market economics with fair but limited regulations to manage exchange relationships.
B) being part of a movement that balances the interests of shareholders, employees, and society.
C) exploiting a nation's natural resources for the betterment of its society.
D) seeking advanced jobs in agriculture that emphasize economies of scale in farming and ranching.
E) executing an aggressive strategy regarding oil and natural gas exploration to make the United States energy independent.

Question 60

Generation X consumers are

A) likely to rely on others.
B) authoritative decision makers.
C) very prone to extravagance.
D) generally supportive of racial and ethnic diversity.
E) poorly educated.

Question 61

Recognized for excellence by Advertising Age magazine, 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

A) psychographic differences.
B) population inputs.
C) multicultural marketing.
D) a value consciousness.
E) macroeconomics.

Question 62

Walmart has set ambitious goals to cut energy use by buying more local products, reducing packaging, and switching to renewable power in response to customers'

A) changing values.
B) changing population composition.
C) changing demographics.
D) changing regulatory forces.
E) changing ethnic composition.

Question 63

A sudden drop in the average consumer income would be an example of which environmental force?

A) economic
B) competitive
C) technological
D) social
E) regulatory

Question 64

Volkswagen opened a large plant in Chattanooga, TN, in 2011. Within a few years, Volkswagen spurred more than 12,400 direct and indirect jobs in the area. The carmaker generates income of over $600 million in Chattanooga annually and boosts state and local tax revenues by over $50 million a year. A huge expansion was announced in 2016 that would nearly double its operations in Tennessee. This example best illustrates ________ change that has impacted the people and businesses of Chattanooga.

A) a social
B) a regulatory
C) a competitive
D) an economic
E) a technological

Question 65

Culture is a component of what type of environmental force that must be scanned to assess its impact on the organization's marketing environment?

A) regulatory
B) technological
C) competitive
D) economic
E) social

Question 66

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

A) Generation X.
B) baby busters.
C) the lost generation.
D) the greatest generation.
E) Generation Z.

Question 67

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

A) races or ethnic groups.
B) nations.
C) religions.
D) generational cohorts.
E) genders.

Question 68

Of the following, which racial or ethnic group had the greatest economic impact in the United States in terms of its buying power?

A) Asian Americans
B) Hispanics
C) African Americans
D) American Indian and other native populations
E) Indian immigrants (from India)

Question 69

The economy is defined as

A) the independent financial factors that are not affected by changes in government spending.
B) the purchase of the highest quality product for the lowest possible price.
C) the production, distribution, and consumption of products, services, and ideas by households.
D) the income, expenditures, and resources that affect the cost of running a business and household.
E) the forces within a manufacturer's control that affect the demand and supply its offerings.

Question 70

Members of Generation Z are most likely to influence marketers' offerings in which of these categories?

A) furniture design
B) medical devices
C) retirement plans
D) e-textbooks
E) vacation resorts

Question 71

Colgate's "Every Drop Counts" water conservation campaign asks consumers to pledge to save water by turning off the faucet while brushing their teeth. This is an example of which increasingly common cultural value?

A) social action
B) competition
C) reducing inequality among competing brands
D) believing in fate
E) reducing cognitive dissonance

Question 72

Changing attitudes toward sex roles are sometimes expressed today as ________ in both product design and promotion.

A) traditional stereotypes
B) gender neutrality
C) data-driven specifications
D) post-modern norms
E) overt sexual themes

Question 73

Oil prices have an impact on transportation costs for many types of products. Should oil prices change, the price consumers pay for products is often adjusted accordingly. Changing oil prices would be an example of ________ force.

A) a social
B) an economic
C) a technological
D) a competitive
E) a regulatory

Question 74

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

A) panethnic
B) generational
C) cross-cultural
D) multicultural
E) regional

Question 75

Culture refers to the

A) moral and ethical beliefs of a family passed down from generation to generation.
B) set of values, ideas, and attitudes that are learned and shared among the members of a group.
C) pastimes associated with the fine arts, such as ballet, music, and theater.
D) standard or pattern of behaviors that is typical or expected of a group.
E) description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.

Question 76

Many consumers are committed to brands with a strong link to social action. An example of this would be

A) McDonald's "I'm Lovin' It" campaign.
B) Colgate's "Every Drop Counts" campaign.
C) Diesel's "Be Stupid" campaign.
D) Liz Claiborne's "Claiborne for Men" campaign.
E) Samsung's "The Jitterbug" campaign.

Question 77

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

A) ten
B) seven
C) five
D) three
E) two

Question 78

Two increasingly important values for consumers around the world are

A) self-esteem and fitness.
B) wealth and upward mobility.
C) patriotism and friendship.
D) family and entertainment.
E) sustainability and social action.

Question 79

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

A) customs.
B) morals.
C) norms.
D) culture.
E) ethics.

Question 80

Which one of the following is a commonly held value in the United States today?

A) sustainability
B) tradition
C) group welfare
D) nostalgia
E) acceptance of birthright