Deck 4: The Marketing Environment

Question 1

The locally dominant Spanish-speaking Hispanic community is referred to as the primal 45-Latino society.

Answer 1

 True

Question 2

George purchased a new hair dryer.However,the hair dryer sparked and the coil caught fire.He felt that the product was dangerous to use.In this case,George should voice his concerns to the Federal Trade Commission.

Answer 2

 False

Question 3

The Bureau of Competition provides information and holds conferences and workshops for consumers,businesses,and policy makers on competition issues for market analysis.

Answer 3

 True

Question 4

The management of a firm has utmost control over the competitive environment confronting it.

Question 5

The term Hispanic encompasses people of many different backgrounds.

Question 6

Component lifestyles decrease the complexity of consumers' buying habits.

Question 7

Gross domestic product is the total market value of all final goods and services produced during a period of time.

Question 8

A target market is a group of people or organizations for which an organization designs,implements,and maintains a marketing mix intended to meet the needs of that group,resulting in mutually satisfying exchanges.

Question 9

The younger Millennials will create a significant amount of economic growth in the U.S.

Question 10

A mobile moment is the point in time at which a customer pulls out a mobile device to get immediate access to the information that he or she wants.

Question 11

Demography is one of the controllable variables in the external environment.

Question 12

Unlike television,social media enable firms to create conversations with customers and establish meaningful connections.

Question 13

Teens command negligible amount of buying power.

Question 14

Age is the primary determinant of the person's earning potential.

Question 15

A person's purchasing power is usually referred to as disposable income.

Question 16

Asian Americans,who represent only six percent of the U.S.population,have the lowest average family income of all groups.

Question 17

An inflation is defined as occurring when the gross domestic product falls for two consecutive quarters.

Question 18

Demographic characteristics are strongly related to consumer buying behavior in the marketplace.

Question 19

Gen Xers tend to be frugal and seek value when making purchases.

Question 20

Component lifestyle refers to choosing products and services that conform to traditional stereotypes.

Question 21

In the context of populations,which of the following statements is true of tweens in the U.S.?

A)​They are the first generation of latchkey children. 
B)They are an attractive market segment for mobile games.
C)They are a larger cohort than baby boomers. 
D)​They are aged between 14 and 18 years.

Question 22

Which of the following statements is true of the attitude of teens in the U.S.?

A)​Most teens prefer to shop online than in stores.
B)According to a survey taken by Piper Jaffary, teens continue to seek peer affirmation.
C)Teens spend more on food than any other cohort group.
D)​Most teens are influenced by traditional advertising, sales reps, and word-of-mouth recommendations than any other cohort.

Question 23

In the context of the external environment of a business,which of the following statements is true of social media?

A)The Internet of Things is increasingly being used by many people.​
B)Social media seldom influence the buying behavior of consumers.
C)Usage rates are higher among older age groups.
D)​Social media have limited consumers' opinion sharing about companies.

Question 24

Which of the following statements is true of American teenagers?

A)​They spend about six hours per week tuned in to electronic media
B)They make the largest cohort group.
C)They prefer face-to-face communication to communicating electronically.
D)​They prefer Tumblr and Instagram to Facebook.

Question 25

In the context of populations in the U.S.,Millennials:

A)​are now more in number than baby boomers.
B)spend the most on food than any other cohort.
C)have been least affected by the Great Recession.
D)​are less interested in technology than any other group.

Question 26

Conformity,a value that strongly influenced attitudes and lifestyles during United States' first 200 years,emphasizes that:

A)​success would come to anyone who got an education, worked hard, and played by the rules.
B)every person should stand on his or her own two feet.
C)hard work, dedication to family, and frugality were moral and right.
D)​no one should expect to be treated differently from anybody else.

Question 27

Global competition is decreasing with increase in population.

Question 28

In the context of social factors that affect marketing,with component lifestyles,people are:

A)​becoming nondiscriminating and undemanding.
B)choosing products that meet their diverse needs.
C)reducing the complexity of their buying behavior.
D)​preferring products that meet traditional needs and interests.

Question 29

Jane is a 16-year-old sophomore.Since she stays abreast of the latest technology,she convinced her parents to replace her old cell phone with a new one.Given this information,Jane is most likely a _____.

A)​tween
B)teen
C)Gen Xer
D)​Gen Yer

Question 30

Laelle Corp.,a technological firm,promotes its products through various social media platforms.In this case,which of the following statements is true?

A)​Laelle Corp. uses the social media platforms as a one-way communication similar to network television.
B)Laelle Corp. creates conversations with its customers and establishes meaningful connections.
C)Social media is rarely used by Laelle Corp.'s customers.
D)​The platforms display content generated by Laelle Corp. but not its customers.

Question 31

Fresnas Cuisine,a restaurant chain,recently introduced fast food in its menu.This action was taken because the top management recognizes that their customers are predominantly young people.This scenario illustrates how _____ influence marketing decisions.

A)​economic factors
B)demographic factors
C)legal factors
D)​ethical factors

Question 32

Which of the following statements is true of today's consumers in the U.S.?

A)​They emphasize more on a product's price than its quality.
B)They seldom give preference to brand names.
C)They are concerned about the nutrition in their food.
D)​They tend to choose products that are expensive.

Question 33

Which of the following statements is true about the population trends in the U.S.?

A)​The populations of the rural regions of the U.S. are aging. 
B)In many parts of the country, multigenerational households are increasingly rare. 
C)Baby boomers are now the smallest population group.
D)​Tweens are now the largest population group.

Question 34

Paulina is an eleven-year-old girl.She spends a lot of time on social media and likes mobile games.In this case,Paulina is most likely to be a:

A)​baby boomer.
B)Millennial.
C)Gen Xer.
D)​tween.

Question 35

According to a Quirk's study,which of the following statements is true of global kids?

A)​They value traditional media more than any other cohort.
B)They have ranked "getting a good education" near the top of socially desirable attributes. 
C)They are a larger cohort than the combined population of Millennials and baby boomers. 
D)​They are still not familiar with the use of social media and mobile technologies.

Question 36

Which of the following basic values strongly influenced attitudes and lifestyles during the United States' first 200 years?

A)​Structural mobility
B)Self-sufficiency
C)Nonconformity
D)​Self-dealing

Question 37

Which of the following statements is true of a target market?

A)​A target market is a closed group of people who do not drop out or allow new people into the group.
B)All the people in a target market share similar tastes, needs, incomes, and lifestyles.
C)Any change in a target market can be easily controlled by marketers.
D)​A marketing mix is designed to appeal to a target market.

Question 38

Which of the following can be considered as a demographic information of a person? 

A)​Intelligent quotient level
B)Beliefs
C)Skill sets
D)​Age

Question 39

Joshua,an HR manager in a multinational firm,is recruiting employees for his firm.During the self-introduction stage,one of the interviewees,Martha,shares information about herself.In this case,which of the following information shared by Martha is a demographic characteristic?

A)​She lives in Manhattan.
B)She believes in social service.
C)She is very creative when it comes to cooking.
D)​She prefers to use electronic gadgets of only one particular brand.

Question 40

Which of the following statements is true of the values held by tweens?

A)​They are concerned about crime, climate change, and their health.
B)They prefer and value traditional media over social media.
C)They are influenced by traditional advertising, sales reps, and word-of-mouth recommendations.
D)​They forgo games and are moving toward entrepreneurship.

Question 41

In the context of growing ethnic markets,African Americans in the U.S.:

A)​spend more on store brands as compared to the general population.
B)comprise the largest percentage of population among different minority groups in the U.S.
C)are inclined to spend less on groceries and hair care products as compared to other cohorts.
D)​acculturate into mainstream America forgetting their cultural heritage.

Question 42

Which of the following statements is true of the younger Millennials?

A)​They form a more massive group than older Millennials.
B)They graduated from college during the Great Recession.
C)They do not spend time surfing the Web or on social media.
D)​They had difficulty finding jobs when they graduated.

Question 43

Which of the following statements is true of Gen Xers?

A)​They spent more time without adult support and guidance than any other age cohort. 
B)They have very low spending power.
C)They graduated from college during the Great Recession and had difficulty finding good jobs.
D)​They are currently in two different stages of the life cycle.

Question 44

Which of the following statements is true of the incomes of baby boomers in the U.S.?

A)​Baby boomers accumulated little amount of savings over their working years.
B)Baby boomers' purchasing power is discretionary and guided by their parents. 
C)Baby boomers' current incomes are relatively low because many have retired.
D)​Baby boomers' want to age in a retirement community.

Question 45

In the context of the American demographic profile,which of the following statements is true of Hispanic Millennials?

A)​The majority of Hispanic Millennials are of Puerto Rican descent.
B)Millennial women are the primary decision makers in Hispanic households.
C)The Hispanic Millennial population in the U.S. is steadily declining.
D)​Hispanic Millennials make a quarter of the Hispanic population in the U.S.

Question 46

Unlike the youngest Gen Yers,the oldest members of Generation Y:

A)are entering adulthood.​
B)were least affected by the Great Recession.
C)turned 50 years old in 2016.​
D)​had difficulty finding good jobs during the Great Recession.

Question 47

Jason was born in 1970.He spent most of his childhood without much adult guidance as both his parents were working professionals.In this case,which of the following is most likely to be true of Jason?

A)​He is independent, resilient, adaptable, cautious, and skeptical.
B)He has a pessimistic outlook on the future.
C)He outspends other generations on consumer goods and services.
D)​He possesses negligible amount of spending power.

Question 48

Unlike Gen Yers,Gen Xers:

A)​were least affected by the Great Recession.
B)have higher average incomes.
C)spend the least on housing compared to other cohorts.
D)​are not considered as attractive market segment for family-oriented products.

Question 49

Which of the following statements is true of Generation Y?

A)​Its members were born between 1965 and 1978.
B)Its members are tech savvy, but they still use traditional media.
C)Its members have the least spending power than any other cohort.
D)​Its members are the first generation of latchkey children.

Question 50

Which of the following statements is true of the primal 45-Latino society?

A)​It is formed by Asian communities.
B)The primal culture followed in the societies tends to be regional.
C)Hispanic Millennials born in the U.S. acculturate to the primal 45-Latino society .
D)​It shares the same characteristics as other societies in the U.S.

Question 51

Which of the following statements is true of baby boomers?

A)​The youngest baby boomers were around 34 years old in 2013.
B)They lay emphasis on price and quality while making purchase decisions.
C)They prefer to be addressed "senior," "elderly," or "aged".
D)​They are a small market with minimal spending power.

Question 52

Unlike Hispanic Americans,_____.

A)​Asian Americans' population growth has been fueled primarily by immigration
B)Asian Americans' average family income is less than Hispanic Americans' average family income
C)Asian Americans seldom retain their core Asian values
D)​Asian Americans refrain from buying from Asian American stores

Question 53

Unlike people who belong to Generation X,baby boomers:

A)​do not use social media or other technologies to buy products.
B)tend to be influenced more by traditional advertising and word-of-mouth recommendations.
C)spend less on gifts, personal care products, medical care, food away from home, and entertainment.
D)​graduated from college during the Great Recession.

Question 54

Hispanic Americans in the U.S.:

A)​prefer to buy American products rather than brands found in their homelands.
B)are much older than the general U.S. population.
C)believe that the traditional family is the main building block of a healthy community.
D)​are the most homogenous ethnic group.

Question 55

James earns $3,000 per month.If his overall cost of living is $1,700,his purchasing power is _____.

A)​$3,000
B)$500
C)$1,300
D)​$1,700

Question 56

A difference between Gen Yers and baby boomers is that baby boomers:

A)​are currently in two different stages of the life cycle.
B)are the most tech-savvy people yet.
C)outspend in categories such as gifts and medical care.
D)​prioritize saving money.

Question 57

Jenny,a single child,moved with her parents to the U.S.when she was 8 years old.Her family is of Mexican descent.Given this information,which of the following statements is true?

A)​Acculturation into mainstream America is more evident in Jenny's parents than in Jenny.
B)Purchase decisions in Jenny's family will revolve around Jenny.
C)Jenny will acculturate to the locally dominant Spanish-speaking Hispanic community.
D)​Jenny is most likely to be a monolingual Hispanic Millennial.

Question 58

Jessica was born in 1994.She spends more time on Facebook than reading magazines.Despite her inclination toward social networking sites,she continues to listen to the radio and read magazines at times.Given this information,which of the following statements is true of Jessica?

A)​She does not expect brands to be on social media.
B)She is a younger Millennial.
C)She is one of the first generation of latchkey children.
D)​She would have graduated from college during the Great Recession.

Question 59

Which of the following statements is true of incomes in the U.S.?

A)​The average family incomes rose slightly in 2013 and 2014.
B)The median household income is almost the same across different states.
C)A person's demographics is the primary determinant of the person's earning potential. 
D)​The median household incomes have peaked in the recent years.

Question 60

Which of the following statements is true about the trends prevalent among various ethnicities in the ethnic markets?

A)​African Americans do not consider cultural/ethnic heritage is a critical part of their identity. 
B)Hispanics of older generations are prone to be bilingual than Hispanic Millennials.
C)Asian Americans retain strong core values even if they embrace American values. 
D)​Asian Americans are less educated than any other minority group.

Question 61

Hydralicious,a juice outlet,had to stop its business as health inspectors found that the storage facilities at the outlet did not meet the standards set by the government.In this scenario,a(n)_____ factor affected Hydralicious's business.

A)​technological
B)economic
C)legal
D)​demographic

Question 62

Which of the following statements is true about the Great Recession of 2008-2009?

A)​Tweens were the most affected population group.
B)Inflation rates increased to almost ten percent.
C)It began with the collapse of inflated housing prices.
D)​It increased employment opportunities in the U.S.

Question 63

Discuss a few strategies for marketing products to baby boomers.

Question 64

Martha visits a departmental store and discovers that a box of exotic candles will cost her ten percent more than what she had paid six months ago.The increase in prices is same across the country.In this scenario,which of the following statements is true?

A)​She will have immediate purchasing power if she had a pay raise to match the inflation. 
B)She has to pay twelve percent more than what she paid last month.
C)The departmental store is trying to earn profits by increasing the prices of its goods.
D)​The candles' subjective value increases with the increase in inflation.

Question 65

Which of the following legislations created the Consumer Financial Protection Bureau (CFPB)?

A)​The Restoring American Financial Stability Act 
B)The Consumer Product Safety Commission
C)The Federal Financial Supervisory Authority 
D)​The Product Quality Commission

Question 66

Which of the following strategies can help business firms stimulate innovation?

A)​Hiring employees who have low risk tolerance
B)Letting employees know that they must fear failure and should not attempt anything that might fail
C)Instructing managers to use micromanagement techniques
D)​Using teams of writers to build scenarios of opportunities and threats

Question 67

List and explain the four basic values that have strongly American attitudes and lifestyles during the United States' first 200 years.

Question 68

Explain the concept of a marketing mix.

Question 69

The CAN-SPAM Act:

A)​prohibits commercial e-mailers from using false addresses and presenting false or misleading information.
B)requires fast-food chains to open their facilities to health inspection at least once every quarter.
C)requires verifiable parental consent before a Web site can collect information from children.
D)​allows commercial e-mailers to charge consumers a fee to opt out of receiving further email.

Question 70

Discuss ways to market to the African American market in the U.S.

Question 71

The Federal Trade Commission's Bureau of Competition _____.

A)​promotes restraint of trade among business firms
B)encourages monopolization and agreements between competitors
C)promotes anti-competitive strategies
D)​seeks out and challenges anti-competitive conduct in the marketplace

Question 72

Peter is conducting research to develop an engine that could run on water.His research is aimed at formulating a combustion process that could be used in commercial vehicles so that vehicles could run on water.Peter's research is an example of _____.

A)​experimental research
B)applied research
C)controlled research 
D)​basic research

Question 73

_____ is charged with enforcing regulations against selling and distributing adulterated,misbranded,or hazardous food and drug products.

A)​The Association for Prohibition of Adulteration 
B)The General Food Regulations
C)The Consumables Protection Bureau
D)​The Food and Drug Administration

Question 74

Alex purchased a battery-operated drill.Due to a manufacturing defect,the drill overheated and exploded when he used it for the first time.Therefore,he lodged a complaint against the firm that manufactured the drill with the Consumer Product Safety Commission (CPSC).In this case,which of the following is most likely to happen?

A)​The CPSC can fine the offending firm up to $500,000.
B)The CPSC will reduce the prices of the drills of the offending firm in the market.
C)The CPSC will introduce changes to the drills of the offending firm in the market.
D)​The CPSC has no power to sentence the officers involved in the case.

Question 75

Identify a true statement about the Great Recession.

A)​The economy completely recovered from the Great Recession in 2009.
B)The Great Recession spread around the globe by 2008.
C)The middle class was the least affected by the Great Recession.
D)​The Great Recession increased employment rates to almost ten percent.

Question 76

Stephen recently purchased electronic equipment from Fournotts Corp.,a firm that manufactures electronic equipment,but the equipment malfunctioned during its first use.If Stephen lodges a complaint with the Federal Trade Commission,which of the following bureaus will be responsible for taking action against the firm?

A)​The Bureau of Consumer Protection
B)The Bureau of Economics
C)The Bureau of Competition
D)​The Bureau of Consumer Privacy

Question 77

Business firms can stimulate innovation by:

A)​hiring employees who have a low risk tolerance.
B)letting employees know that they have the freedom to fail.
C)using micromanagement techniques.
D)​talking to late adopters.

Question 78

Which of the following is an element of a competitive environment?

A)​Innovation and risk taking
B)The degree of interdependence within the industry
C)A consumer's income
D)​Consumers' varied demographic characteristics

Question 79

Magnira Corp.,a technological firm,recently acquired a smaller firm abroad.The Federal Trade Commission looked into the acquisition and found that Magnira Corp.used unfair means to acquire the business.In this case,which of the following bureaus was responsible for reviewing the acquisition?

A)​The Bureau of Consumer Protection
B)The Bureau of Economics
C)The Bureau of Competition
D)​The Bureau of Consumer Privacy

Question 80

Which of the following scenarios is an example of basic research?

A)​Jeremy, a social activist, is researching ways to improve the quality of life of physically challenged people.
B)Xerome, an engineer, is trying to find an alternative fuel that would be cost effective and environmental friendly.
C)Sasha, a student, is working on his new science project.
D)​Laila, an engineer, is trying to rectify the malfunctions of her newly invented engine.