Deck 2: The Marketing Environment, Social Responsibility, and Ethics

Question 1

What happens when disposable income rises?

A)Families can't afford the "good life."
B)Families can afford the "good life."
C)Families go into more debt.
D)Families travel more.

Answer 1

B

Question 2

Martha visits a department store and discovers that a box of exotic candles will cost her 10 percent more than what she had paid six months ago. The increase in prices is same across the country. Which of the following best describes the situation?

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.

Answer 2

A

Question 3

What is the term for a defined group that managers believe is most likely to buy a firm's product?

A)target market
B)buying centre
C)aggregated unit
D)demographic sample

Answer 3

A

Question 4

Laws and requirements of various governments and their ongoing development and change are part of all organizations' external environment. Which type of factors are they an example of?

A)economic investment factors
B)political and regulatory factors
C)research and development factors
D)competitive factors

Question 5

The Canadian government now requires all consumer food packaging to indicate the level of trans-fats in products. What is this requirement an example of?

A)a competitive environment
B)a demographic environment
C)a social environment
D)a legal environment

Question 6

What does the median total family income mean?

A)that a quarter of families earn less and the other quarter earn more
B)that a third of families earn less and the other third earn more
C)that half of all Canadian families earn less and the other half earn more
D)that Canadian families have a good income level

Question 7

What is a difference between company and competition?

A)the analysis of the external departments rather than the analysis within
B)the understanding of the customers rather than the rivalry
C)the understanding of the social environment rather than the analysis of others
D)the analysis of the internal departments rather than the analysis of the external departments

Question 8

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)the consumer's income
D)consumers' varied demographic characteristics

Question 9

Dan Strong is a personal trainer who believes there is an underserved niche in overweight teenagers who want to get fit. If he goes after this segment by designing an appropriate marketing mix, which of the following terms describes this group?

A)target market
B)buying centre
C)aggregated unit
D)consumer cluster

Question 10

Marketers must react to the economic environment. What are three economic areas of greatest concern?

A)education, roles in families, income levels
B)incomes, inflation, education
C)incomes, inflation, and recession
D)education, demographics, and recession

Question 11

What is the primary determinant of a person's earnings?

A)multiculturalism
B)lifestyle
C)education
D)the aging of the baby boomers

Question 12

Japanese law prohibits the storage of more than 22 kilograms of explosives at any single site. Every night Universal Studios Japan hosts a fireworks display. Universal Studios recently came under government investigation when it was found out they were detonating more than 22 kilograms of explosives. In Japan, the use of explosives is strongly controlled. Which of the following factors are affecting Universal Studios Japan in this example?

A)competitive factors
B)regulatory factors
C)economic factors
D)technological factors

Question 13

Which of the following best defines competition?

A)developing goods and services to sell
B)purchasing goods and services to consume
C)evaluating goods and services to rival
D)developing goods and services to sell

Question 14

Colourific is a new competitor for Crayola colouring products. Elementary school students are the group Colourific wants to sell to. How would they be classified?

A)as a target market
B)as a buying centre
C)as a mass market
D)as a consumer sample

Question 15

When Universal Studios Japan opened, health inspectors discovered they had piped industrial-use water not suitable for drinking into the drinking fountains. The problem was costly to repair. In this example, which of the following factors are responsible for the repair costs?

A)social factors
B)economic factors
C)political and regulatory factors
D)cultural factors

Question 16

What was the median total family income in Canada in 2014?

A)$80,000
B)$65,000
C)$78, 870
D)$87,780

Question 17

What is the primary determinant of a person's earning potential?

A)a good paying job
B)a good family background
C)education
D)work experience

Question 18

Tony works for a company that is having a hard time competing in the market. Tony really wants to stand out with in his organization to further his career in marketing. Which of the following strategies should Tony pursue to better understand the macro environment around his company?

A)Tony should study and analyze the competition to understand how his company differs from everyone else so that he can pinpoint the fallout of his company.
B)Tony should study and analyze the technological environment that is used to understand how his company differs from everyone else so that he can pinpoint the fallout of his company.
C)Tony should study and analyze the consumer to understand how his company differs from everyone else so that he can pinpoint the fallout of his company.
D)Tony should study and analyze the social environment that is used to understand how his company differs from everyone else so that he can pinpoint the fallout of his company.

Question 19

A target market is best characterized by which of the following statements?

A)Target markets will remain stable over time, considering economic climates.
B)Target markets change over time as consumers drop in or out of the market, and as tastes change.
C)Target markets are not strongly affected by changes in the external environment.
D)Target markets cannot be specifically defined according to age, income, or location because these factors are continually changing.

Question 20

Almost any product in India, from tap water to milk, has traces of toxins, due to the overuse and misuse of insecticides. But the government expects multinational corporations (MNCs) operating in India to produce food that is toxin-free. In this example, which factors are influencing the operating environments of MNCs?

A)demographic and technological factors
B)regulatory and technological factors
C)pricing and social factors
D)economic and behavioral factors

Question 21

China's new 5 percent tax on disposable wooden chopsticks has been praised by environmentalists. Which of the following factors of the external environment of restaurant owners in China are influenced by this price increase?

A)economic factors
B)technological factors
C)demographic factors
D)social factors

Question 22

What is the definition of inflation?

A)a measure of the decrease in the value of money
B)when prices have lowered
C)what the government does to make consumers unhappy
D)when prices have increased

Question 23

How much does 25.2 percent of households spend on shelter?

A)30 percent
B)more than 30 percent
C)45 percent
D)more than 45 percent

Question 24

Interest rates, inflation, and consumer income influence the consumer spending. What type of factors are they?

A)economic factors
B)socio-demographic factors
C)political factors
D)government factors

Question 25

When can consumers feel that they can enjoy an expensive meal out?

A)when inflation is high
B)when they have discretionary money to spend
C)when they have paid off their student loans
D)when they have disposal income

Question 26

What is it called when income is high relative to the cost of living?

A)money to enjoy
B)discretionary income
C)time to save your money
D)inflation

Question 27

What should consumers do during a time of inflation?

A)spend more money
B)make better economical purchases
C)stop shopping
D)buy products in smaller quantities

Question 28

Which of the following is a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year?

A)inflation
B)recession
C)depression
D)consumer break-even point

Question 29

What do businesses need to consider when they want to build a high-end store?

A)areas that have good traffic
B)good neighbourhoods
C)close to universities and colleges
D)areas of high income

Question 30

Sally wants to buy a Louis Vuitton bag.What is the most important factor that marketers need to know about Sally?

A)Sally's education
B)Sally's willingness to buy
C)Sally's ability to buy
D)Sally's income level

Question 31

James lost his job in garment sales due to falling customer orders in Canada. Most business sectors have been hit by falling demand and low consumer confidence. Which economic trend is Canada currently experiencing?

A)stagflation
B)inflation
C)recession
D)depression

Question 32

When income is high relative to the cost of living, what will consumers have?

A)more discretionary income
B)more incentive to buy luxury items
C)less incentive to buy luxury goods and services
D)significantly less disposable income

Question 33

How does a higher education assist the Canadian society?

A)Marketers know where to target their goods and services.
B)Marketers can better understand their customers.
C)It reduces fear in the marketplace.
D)It reduces low income and unemployment.

Question 34

Which of the following strategies will marketers use during a time of economic recession?

A)promoting product cost
B)maintaining and improving customer services
C)emphasizing top-of-the-line products in promotions
D)offering products that are expensive

Question 35

How much has the median income for Canadian household risen since the 1990s?

A)It has risen more than the median household spending.
B)It has risen less than the median household spending.
C)It hasn't changed.
D)It has risen 35 percent.

Question 36

Rising incomes don't necessarily mean a higher standard of living. What are increased standards of living are a function of?

A)depression
B)recession
C)inflation
D)purchasing power

Question 37

When planning marketing strategies during times of recession, marketers must be aware that recession causes consumers to do which of the following?

A)to put more money into savings accounts because prices are too high
B)to consume more meals away from home
C)to buy in small quantities until inflation is over
D)to decrease their brand loyalty to products they have traditionally used

Question 38

What is measured by comparing income to the cost of goods and services in different geographic areas?

A)gross individual profit
B)purchasing power
C)net profit
D)relative pricing

Question 39

What factors does the Cost-of-Living index take into account?

A)housing and essentials
B)housing and cell phone costs
C)costs of housing, food, and groceries
D)education and travel

Question 40

Which of the followingusually leads to an increase in purchasing power?

A)an increase in gross income
B)an increase in social class
C)an increase in disposable income
D)an increase in the cost of living

Question 41

In Asia, Procter & Gamble (P&G) discovered consumers like to experiment with different brands of shampoo, so most shoppers shy away from the family-size bottles so popular with North Americans. Now, most of the shampoo the company sells in the Far East is packaged in single-use sachets. Which factors did P&G respond to when it changed its Asian packaging?

A)demographic factors
B)competitive factors
C)technological factors
D)social factors

Question 42

Many people in Canada choose to drink light beer because Canadians value thin and fit bodies. In Europe, light beers have had little success because flavour is valued more highly. For international beer manufacturers, what does this difference illustrate?

A)how demography influences marketing
B)how competition influences marketing
C)how social factors influence marketing
D)how economic conditions influence marketing

Question 43

Which of the following is the most accurate description of the external environment?

A)factors that can be controlled by the business
B)factors that cannot be influenced by marketing managers
C)factors that only change very slowly over time
D)factors that must be continually monitored by marketing managers

Question 44

What do self-sufficiency, upward mobility, and conformity have in common?

A)They are no longer valued attitudes.
B)They are attitudes that can easily be changed.
C)They are three perceptions that Canadians have of the Asian lifestyle.
D)They are three of the core values that have influenced lifestyles in North America.

Question 45

One of the favourite foods in Thailand is shark fin soup. A San Francisco-based organization claimed the soup made by the leading producer of shark fin soup contained mercury poison. Sales for this company have dropped. The popularity of this soup in Thailand represents which of the following factors?

A)economic factors
B)technological factors
C)social factors
D)competitive factors

Question 46

Cereal manufacturers have developed what they call "breakfast-with-one-hand" products, which are breakfast bars and drinks that can be consumed on the way to work without leaving any mess. This type of food that can be eaten on the go is largely the result of changes in which factors?

A)natural environmental factors
B)demographic factors
C)technological factors
D)social factors

Question 47

How does the Vanier Institute of Family define the family of today?

A)one or two people living together
B)two or more persons who are bound together by ties of mutual consent, birth/or adoption
C)a married man and wife with children
D)unmarried man and wife without children

Question 48

Which of the following is a good example of an environmental factor?

A)a changing economy
B)wildfires or other disasters
C)consumers losing faith in their favourite brands
D)loss of jobs

Question 49

More and more people are piecing together a variety of interests, products, and services, and are not conforming to traditional stereotypes. What are they enjoying?

A)well-defined segments
B)component lifestyles
C)simple multipurpose products
D)conformity and cohesiveness

Question 50

What are the four basic Canadian values?

A)respect, faith, family, fairness
B)self-sufficiency, upward mobility, work ethic, fairness
C)family, friends, overcoming challenges, fun
D)finances, future, fun, fitness

Question 51

What are the social factors that marketing managers need to understand?

A)opportunities and lifestyles
B)threats and strengths
C)demographics and attitudes
D)opportunities and values

Question 52

What environmental factors are concerned with the changes in people's values, lifestyles, and family roles?

A)social factors
B)economic factors
C)political factors
D)demographic factors

Question 53

Donna is a college teacher, a rock-climbing expert, a foster parent, and an accomplished violinist. Her other interests include glass blowing, gourmet cooking, and classic movies. How would marketers categorize Donna?

A)as fitting into a caregiver segment
B)as a person who is hard to market to
C)as not belonging to any target market
D)as having a component lifestyle

Question 54

Donny loves to hunt, write poetry, paint, and practise environmental conservation. Although this seems contradictory, Donny refuses to conform to a single traditional way of life. What kind of lifestyle description does Donny fit into?

A)aggregated lifestyle
B)component lifestyle
C)psychographic lifestyle
D)demographically defined lifestyle

Question 55

Why has the component lifestyle of many of today's consumers proven to be such a challenge to marketers?

A)because people with component lifestyles expect multi-tiered pricing
B)because the needs of people with component lifestyles are in constant flux
C)because communication with people who have component lifestyles is very difficult
D)because there are no specialized lifestyle magazines that reach small segments of markets

Question 56

Which of the following is sometimes an effective weapon for fighting inflation and recession?

A)increasing store brands
B)line extensions
C)increased capital gains taxes
D)introduction of new product lines

Question 57

Coolsavings.com is one of the largest online distributors of in-store coupons, sales announcements, and mail-in rebates offered by national retailers and Internet commerce sites. Its marketing department keeps track of current external environmental changes. Which trends are most important for a company to understand and extremely difficult to forecast?

A)demographic trends
B)economic trends
C)social trends
D)technological trends

Question 58

What is the most difficult external variable for marketing managers to forecast, influence, or integrate into marketing plans?

A)economic factors
B)technological factors
C)social factors
D)competitive factors

Question 59

Which of the following is the most difficult external variable for marketing managers to forecast, influence, or integrate into marketing plans?

A)technology
B)social factors
C)demography
D)population growth

Question 60

McDonalds has been very concerned about including healthy items like salads and fruit on their menu. Consumer preference for low-carb diets has greatly modified the way food is being marketed. Which issues has the company been trying to react to?

A)economic issues
B)social issues
C)technological issues
D)demographic issues

Question 61

Carissadesigns and sells clothes for young working women. She has recently been told that unless she starts designing more to suit the style of the Gen-Y market, she is likely to be in financial trouble soon. Why would someone tell her that?

A)because Gen-Yers don't have a style that they prefer
B)because Gen-Yers are more multicultural
C)because Gen-Yers are the children of the baby boomers, and echo boomers
D)because Gen-Yers demographically will be the next large group of consumers

Question 62

Zimmer Centralpulse is the world's largest producer of replacement hips and knees. The company is particularly interested in the market in southern British Columbia, where a large aging population lives. Which external environmental element most directly influences the continued growth of Zimmer Centralpulse?

A)economics
B)political factors
C)culture
D)demography

Question 63

Ashley is the director of marketing for a company that operates several assisted-living centres. The company is developing a marketing plan to cover the next five years of business. Which of the following uncontrollable factors must Ashley be sure to consider in her plan?

A)place or distribution factors
B)media-buying factors
C)demographic factors
D)inventory factors

Question 64

Which of the following best characterizes Generation Y?

A)Its members are people who were born between 1979 and 2000.
B)It is smaller than Generation X.
C)Its members are pressed for time and spend more on personal services than any other age group.
D)It is the first generation of latchkey kids.

Question 65

You are a marketing consultant to a firm that would like to target members of Generation X. Which of the following would you advise it to do?

A)Emphasize freedom from work and commitment.
B)Develop a personal service that will appeal to these time-poor consumers.
C)Avoid topics dealing with materialistic possessions.
D)Emphasize the baby-boom culture.

Question 66

Which of the following is a demographic characteristic of a population?

A)retirement income level
B)volunteering
C)values
D)ethnicity

Question 67

Why have some grocery stores added online shopping to their offerings?

A)because some people find it more efficient to shop online
B)because it is another feature for the store
C)because time is more important to many customers than shopping is
D)to compete in the marketplace

Question 68

When was Generation Z born?

A)2010-2015
B)1995-2009
C)1980-1994
D)1965-1979

Question 69

Girls between the ages of 8 and 14 are one of the growing markets for high-end shoe manufacturers. But doctors are finding that many of these girls are developing grown-up foot problems that once affected only women over 50. Which girls are experiencing problems because they want to be fashionable?

A)members of Generation X
B)a cohort generation
C)members of Generation Z
D)members of Generation Y

Question 70

Ryan has grown up in a generation where there is an importance placed on social responsibility. Which group does Ryan most likely belong to?

A)Generation Xers
B)the cohort generation
C)the baby-bridging generation
D)Generation Yers

Question 71

According to the text, what is one of the trends in families today?

A)Adult children can't wait to move out of the house.
B)Adult children are not getting married as they did in the past.
C)Adult children are returning to live with their parents.
D)Adult children are having to look after their parents and grandparents.

Question 72

According to the textbook, how do marketers need to react to the changing family trends?

A)They need to make purchasing easier.
B)They need to update their social media and informational sites.
C)They need to have good online return policies.
D)They need to communicate with consumers several times a day via social media.

Question 73

Field Entertainment was given the task of editing 75 years of Disney Magic into a two-hour show. While the task was challenging, the company described the results as multigenerational (meaning the newly created show appeals to children, parents, and grandparents). Which factors did Field Entertainment rely heavily on to develop a new show that would be enjoyed by all ages?

A)technological factors
B)cultural factors
C)demographic factors
D)competitive factors

Question 74

Which group of consumers was born between 1966 and 1978?

A)tweens
B)yuppies
C)cohort markets
D)Generation X

Question 75

What is the other name of Generation Z?

A)teenagers
B)snowflakes
C)teens
D)Millennials

Question 76

What is a characteristic of Generation Z?

A)trendy
B)unconventional
C)special and unique
D)difficult to market to

Question 77

Riot Media is a media and toy company that capitalizes on the "gross-out" humour factor that boys between the ages of 9 and 14 so love. Whom does it target?

A)members of Generation X
B)a cohort generation
C)tweens
D)members of Generation Y

Question 78

What do we call the study of people's vital statistics, such as their ages, births, deaths, and locations?

A)cultural sociology
B)psychometrics
C)demography
D)ethnography

Question 79

How does the Vanier Institute of the Family define the family today?

A)as having not a lot of diversity
B)as having two parents raising children
C)as having grandparents living in the same house
D)as any combination of two or more persons who are bound together over time by ties of mutual consent

Question 80

Which of the following do most families want?

A)more social status
B)less stress and more money
C)more time and money
D)more family time