Deck 3: Scanning the Marketing Environment

Question 1

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.

Answer 1

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

Question 2

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.

Answer 2

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

Question 3

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

Answer 3

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.

Question 4

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

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

Question 5

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 6

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

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

Question 7

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 easier 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 8

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 9

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 10

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 11

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.

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

Question 12

The purpose of environmental scanning is to

A)uncover causes of trends in the marketplace.
B)uncover opportunities in the marketplace.
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 13

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

Question 14

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.

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

Question 15

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

Question 16

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,Snapchat,and new social networks encourages 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 17

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

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

Question 18

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 19

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

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

Question 20

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 21

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 22

The country expected to have the largest population in 2050 is

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

Question 23

Projections show that the population is

A)growing in most developed countries.
B)declining in most developing countries.
C)decreasing in Africa.
D)increasing in Asia.
E)decreasing in Latin America.

Question 24

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.

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

Question 25

The population explosion has occurred

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

Question 26

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

A)5)7 billion.
B)6)3 billion.
C)7)4 billion.
D)8)2 billion.
E)9)5 billion.

Question 27

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 28

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.

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

Question 29

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 30

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

A)income
B)age
C)occupation
D)zip code
E)ethnicity

Question 31

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 32

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 33

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

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 tablet devices such as the iPad.

Question 34

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.

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

Question 35

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 36

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

A)2 billion.
B)3 billion.
C)5 billion.
D)6 billion.
E)9 billion.

Question 37

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 38

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

A)the declining populations in Latin American countries
B)the large and growing markets in India and China
C)the tripling of the population of consumers under 40 years old
D)the decreasing interest in entrepreneurship in developing countries
E)the lack of savings of elderly populations in developed countries

Question 39

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 40

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 advanced technology is perfected
D)a decrease in consumer incomes
E)a new international firm exporting to the United States

Question 41

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

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

Question 42

Generation Y is sometimes referred to as

A)echo-boomers.
B)baby boomers.
C)baby busters.
D)the revolution generation.
E)Generation 25.

Question 43

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

A)working at "green" jobs.
B)political activism.
C)intergenerational dialogue.
D)fiscal conservatism.
E)educational reform.

Question 44

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?

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

Question 45

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

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

Question 46

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 47

Members of Generation Z are most likely to influence

A)furniture design.
B)health care and insurance.
C)retirement plans.
D)e-textbooks.
E)automobile design.

Question 48

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 49

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

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

Question 50

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

A)Members of Generation X
B)Baby boomers
C)Members of Generation Z
D)Baby busters
E)Millennials

Question 51

Generation X

A)is the least healthy generation since the 1940s.
B)accounts for the smallest percentage of consumer spending among the cohorts.
C)is 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 52

Generation X is defined as the generation of children born

A)between 1946 and 1964.
B)between WWI and WWII.
C)between 1965 and 1976.
D)between 1977 and 1994.
E)since the millennium.

Question 53

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 54

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 55

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 56

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

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

Question 57

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 58

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)Generation Xers
C)Generation Yers
D)baby boomers
E)baby busters

Question 59

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 60

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 61

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

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

Question 62

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 63

Remote suburbs are called

A)exurbs.
B)ruralia.
C)outstate residential.
D)subdivisions.
E)minor statistical areas.

Question 64

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

A)low levels of remarriage among divorcees
B)fewer households with unmarried partners
C)an increase in the number of children per household
D)the growth of gray divorce
E)a decrease in blended families

Question 65

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

A)10 percent
B)20 percent
C)48 percent
D)64 percent
E)75 percent

Question 66

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

A)eastern
B)west coast
C)northern
D)midwestern
E)southern and western

Question 67

A blended family is

A)the result of the decline in divorce in recent years.
B)a household with unmarried partners.
C)a typical outcome of increased cohabitation.
D)a family formed by merging two previously separated units into a single household.
E)households formed with unrelated individuals.

Question 68

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

A)Utah
B)Florida
C)Nevada
D)Idaho
E)Illinois

Question 69

Exurbs are

A)statistical areas of at least 50,000 or more people.
B)remote suburbs.
C)statistical areas of at least 10,000 but less than 50,000 people.
D)statistical areas that contains a population of 2.5 million or more.
E)the combination of metropolitan statistical areas and micropolitan statistical areas.

Question 70

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

A)along the east coast.
B)near the Canadian border.
C)along the west coast.
D)in states that border Mexico.
E)within the central "fly over" region of the United States.

Question 71

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 72

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

A)micropolitan statistical area.
B)metropolitan statistical area.
C)consolidated metropolitan statistical area.
D)megapolitan statistical area.
E)metropolitan division.

Question 73

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

A)micropolitan statistical area.
B)metropolitan statistical area.
C)downtown statistical area.
D)zip code.
E)combined statistical area.

Question 74

A metropolitan statistical area refers to

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.
B)a statistical area of 2.5 million people or more.
C)a cluster of exurbs that function as a single unit due to the proximity of their geographic locations to an urbanized area.
D)a highly urbanized area with a centrally located population of at least 1,000,000 people.
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.

Question 75

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

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

Question 76

A micropolitan statistical area refers to

A)a statistical area of 2.5 million people or more.
B)a highly urbanized area with a centrally located population of at least 1,000,000 people.
C)a cluster of exurbs that function as a single unit due to the proximity of their geographic locations to an urbanized area.
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.
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.

Question 77

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

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

Question 78

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

A)The structure of the American household has not changed significantly since 1960.
B)With a drop in the divorce rate,almost 58 percent of households today are married couples with children.
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.
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.
E)The percentage of married couples has increased from 50 percent in 1960 to 75 percent today.

Question 79

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

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

Question 80

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

A)cohort.
B)blended family.
C)merged household.
D)reconstituted family.
E)multigenerational household.