Deck 12: Income, Social Class, and Family Structure

Question 1

Which statement is most true regarding the average Canadian's standard of living?

A) It is relatively high by international standards but declining.
B) It is relatively low by international standards and continues to decline.
C) It is moderate by international standards and stable.
D) It is relatively high by international standards and continues to improve.

Answer 1

D

Question 2

Products that are bought and displayed as markers of social class are called what?

A) status symbols
B) wealth markers
C) possessions
D) social symbols

Answer 2

A

Question 3

Which of the following is true regarding spendthrifts and tightwads?

A) Spendthrifts spend cautiously; tightwads hate spending.
B) Spendthrifts hate spending; tightwads do not spend.
C) Spendthrifts spend occasionally on others; tightwads never spend on others.
D) Spendthrifts spend freely; tightwads hate spending.

Answer 3

A

Question 4

According to 2008 global statistics,almost 2.5 billion people lived on how much money per day?

A) Less than $2
B) Less than $5
C) Less than 20 cents
D) $20

Question 5

Victor wanted to be able to show Marilyn's parents that he had some money,too,so he wore his best Italian suit and his large cubic zirconium pinky ring.They were Victor's way of advertising his achievements.Products used in this way are called:

A) status utilities.
B) fraudulent symbols.
C) social class indicators.
D) status symbols.

Question 6

What is generally true of consumers in a recession?

A) Everyone suffers and cuts back on spending.
B) Rhe rich suffer as the poor cut back on spending.
C) Many reallocate spending and buy less on credit cards.
D) Everyone cuts back on spending, but only the low-income consumer segments suffer.

Question 7

Research by UK firm M&C Saatchi identified eight consumer segments showing different attitudes and behaviours towards spending and saving money.In an economic downturn scenario,which segment tried to sacrifice purchases in some categories to buy things in others?

A) treaters
B) justifiers
C) balancers
D) scrimpers

Question 8

If you were going to construct a questionnaire to determine "consumer confidence," you might be advised to ask all of the following questions except ________.

A) "Would you say that you and your family are better off or worse off financially than a year ago?"
B) "Are you happy with your job?"
C) "Do you plan to buy a car in the next year?"
D) "Do you think the GDP growth rate will be as predicted at the beginning of the year?

Question 9

Canada is the only G7 nation to have fully recovered in terms of employment and GDP.This has been attributed to:

A) more women entering the work force.
B) growth of computer-related industries.
C) a sound financial system.
D) a growing working immigrant class.

Question 10

Consumer demand for goods and services depends on:

A) target marketing and PR.
B) economics and finance.
C) ability and willingness to buy.
D) the money to buy the product or service.

Question 11

Which field of research is concerned with the human side of economic decisions?

A) expectancy theory
B) behavioural economics
C) buyer behaviour
D) consumer economics

Question 12

Nick comes from the "other side of the tracks." His father spent all his life in the mine and Nick works as a sanitary engineer.All these factors determine his:

A) social stratification.
B) savings rate.
C) consumer confidence.
D) social class.

Question 13

The money available to a household over and above that required for a comfortable standard of living is termed:

A) diversion income.
B) discretionary income.
C) discretional income.
D) fun money.

Question 14

In 2006,according to Statistics Canada,what approximate percentage of Canadians had some university education?

A) 43%
B) 50%
C) 12%
D) 16%
E) 25%

Question 15

The reason that people with more money tend to be happier than those with less money is because:

A) they can live out their wildest fantasies.
B) they become more satisfied because of the "more" feeling.
C) they have fewer problems with debt collectors.
D) they can afford the freedom money can buy.

Question 16

Which of the following is not listed as a determinant of how much a person will save (savings rate)?

A) the individual's own sense of optimism about his or her personal circumstances
B) the relationship between the lending prime rate and growth rates
C) world events such as wars
D) national events such as the election of a prime minister

Question 17

Because consumer beliefs about what the future holds is such an important determinant of how much they will pump into the economy when making discretionary purchases,many companies take forecasts about intended spending seriously (e.g.,"Do you plan to buy [a car] in the next year?")and have surveys conducted to measure:

A) consumer confidence.
B) economic health.
C) consumer purchase behaviour.
D) discretionary spending.

Question 18

Which is the fastest-growing segment of the working Canadian population according to Statistics Canada?

A) mothers with school-age children
B) mothers with pre-school children
C) single mothers
D) baby boomers

Question 19

Which is the best description of discretionary income?

A) Money that the household saves for emergencies and does not spend.
B) The money available to a household after tax.
C) The total gross income the household has earned.
D) The money available to a household over and above that required for a comfortable standard of living.

Question 20

In dual-income households without children,what percentage of women earn more than their spouses?

A) 10%
B) 30%
C) 50%
D) 60%

Question 21

Sandra Jackson decided to become a university professor after several years as a doctor.She still wanted to help people; she just wanted to do it differently.Sandra's case is an example of which of the following?

A) downward mobility
B) upward mobility
C) horizontal mobility
D) diagonal mobility

Question 22

The German sociologist Max Weber broke social rankings down into which three types?

A) social honour, power, and wealth and property
B) social honour, personal honour, and material honour
C) class, wealth, and personality
D) family background, power and wealth, and property

Question 23

When Otis visited Toronto he watched CNN on TV in his hotel,and went to the ROM and to hear the symphony orchestra.Most likely he belongs to:

A) upper and upper-middle classes
B) upper
C) middle class
D) middle and working

Question 24

The Garrets are a lower-class family and have four children.The Devlins are middle-class family that has only two children.The fact that the Garrets have more children is an example of:

A) differential fertility.
B) strata ascription.
C) status achievement.
D) distinguishing effects.

Question 25

Young,lower-class men and women who mix track suits with flashy brands and accessories from big names such as Burberry have become known as what in the UK?

A) blingsters
B) ritchies
C) chavs
D) rads

Question 26

People within a social class share all of these characteristics EXCEPT:

A) they have approximately equal social standing within the community.
B) they work in roughly similar occupations.
C) they share many of the same ideas and values about the way life should be lived.
D) they tend to socialize with people from a wide variety of backgrounds.

Question 27

Nike has profited from what change in China's social system?

A) a rising lower class
B) a change in China's labour policies
C) a rising youth population
D) a rising middle class

Question 28

Miriam comes from a background of old money.How might this affect her spending habits compared to her friend Harry who has recently done well?

A) Miriam spends less in general.
B) Miriam doesn't flaunt her consumption.
C) Miriam spends less on small items as she has high property upkeep costs.
D) Miriam needs to show others her wealth in social contexts.

Question 29

Miguel has worked very hard over the past ten years and has reaped the rewards of his labours by being named company president (salary $200 000/yr.)However,even after his new-found wealth,he is unhappy.This condition is known as:

A) achievement dysfunction.
B) affluenza.
C) acquired deficiency.
D) depressive anxiety.

Question 30

Although members of a particular social group carry the same identity of membership,some members are better off,better liked or respected,and have more authority or power than others.The group exhibits:

A) social inequity.
B) a status hierarchy.
C) a "big cheese" structure.
D) intra-class rivalry.

Question 31

The most influential and the earliest attempt to describe Canadian class structure was proposed in 1941 by:

A) Richard Coleman.
B) Bernard Blishen.
C) W. Lloyd Warner.
D) George Katona.

Question 32

According to Karl Marx,a person's position in society was determined by their relationship to what?

A) the socialist government
B) the land
C) the church
D) the means of production

Question 33

A major class difference involves the worldview of consumers.These behaviours are typical of working classes EXCEPT:

A) their buying behaviour is dictated by immediate or short-term needs.
B) they have a more intimate and constricted view of the world, involving their relatives and community.
C) their vacation trips tend to be short and nearby.
D) they envy higher social classes and try to maintain the appearance of a high-status lifestyle.

Question 34

Johann seemed to have all the luck-some would say that he was "born with a silver spoon in his mouth." This is an example of:

A) prestige status.
B) ascribed status.
C) homogamy.
D) status recognition.

Question 35

Katrina,a new recruit for Maple Leaf Foods,is promoted very quickly over longer-term employees,and is given a parking space with the company vice presidents.This is an example of:

A) employee discrimination.
B) social stratification.
C) company favouritism.
D) rapid advancement.

Question 36

The biggest emerging consumer market at present is know by its acronym BRIC.What does it stand for?

A) Big, Rich, Industrial Consumers
B) Brazil, Russia, India, China
C) Booming, Rich, Independent Children
D) Bolivia, Russia, Italy, China

Question 37

Which sector of the population is largely responsible for fuelling Japan's luxury-goods spending?

A) single young males
B) single working women
C) young newlyweds
D) wealthy retirees

Question 38

Which is the primary growing consumer market in the Middle East at present?

A) sports cars
B) menswear fashion
C) designer ladies underwear
D) western luxury fashion brands

Question 39

The millions of consumers around the world who can now afford higher quality products are referred to as belonging to the ________.

A) global middle class
B) mobile demanders
C) swing class
D) mass class

Question 40

Universally,people develop a ________ whereby they are ranked in terms of their relative standing in society.

A) ranking order
B) placement order
C) social placement
D) pecking order

Question 41

What does the family life cycle (FLC)concept intend to do?

A) stabilize family fertility rates
B) combine trends in income and family type with demands on income
C) compare how we live now compared to the past
D) combine trends in family size with spending patterns

Question 42

The average Canadian family was close to four people in 1971.Now it is:

A) 1.3
B) 2.7
C) 3.0
D) 4.3

Question 43

A good definition of an extended family unit is ________ living together.

A) two parents and at least one child
B) two parents and a grandparent
C) two generations of a family plus one renter
D) three generations of a family

Question 44

The __________ is the average number of children that would be born per woman if all women lived to the end of their childbearing years and bore children according to a given fertility
Rate at each age.a.life cycle rate
B) total fertility rate
C) net birth rate
D) population rate

Question 45

An increase in one-person households is linked to what?

A) rising opportunities for single-serving products
B) young people marrying later
C) suicide rates increasing
D) condo sales

Question 46

The "nuclear family":

A) consists of three generations living together, often including grandparents, aunts, uncles, and cousins.
B) refers to that generation of youngish adults charged with supporting their parents as well as their own children.
C) consists of mother, father, and one or more children
D) a modern-day lesbian or gay couple living together as a family unit.

Question 47

Consumers who are "in the know" about valued status symbols may switch gears and deliberately seek to mock the prizing of such status symbols by avoiding them,for example,by wearing torn blue jeans,a form of consumption called:

A) ironic mimicry.
B) fraudulent flattery.
C) parody display.
D) counterfeit consumption.

Question 48

Debra has a good job in a growing company,but has returned to live at home with her parents.What effect will this typically have on her spending behaviour?

A) She is likely to invest a lot of her income.
B) She will allot most of her income to the family purse.
C) She will spend cautiously under her parents influence.
D) She will allot a high amount of her income to entertainment.

Question 49

John is 28 and still lives at home.Which best describes his situation?

A) He is one of the 20% of young unmarried Canadian males who live at home.
B) He is one of the 50% of young unmarried Canadian males who live at home.
C) He is one of the 50% of young unmarried Canadians who live at home.
D) He is one of the 60% of young unmarried Canadians who have returned to live at home after a failed relationship.

Question 50

Freddie,who is 32 years old,had been working in Kanata for many years.Like many other techies,he has just been laid off and has returned to his parents' home in BC.He can be termed:

A) techie dropout.
B) boomerang child.
C) boomerang kid.
D) rebound kid.

Question 51

Veronica recently bought a new high-end BMW.One of the reasons she purchased it was because she knew other people in her neighbourhood would be jealous of her.For Veronica,the role of the BMW was:

A) individual distinguishing.
B) integrated status.
C) invidious distinction.
D) inspired differentiation.

Question 52

The Bartons threw a massive birthday party for their youngest daughter.They decorated the event like a carnival,hired a clown,had a huge balloon drop,and even brought in an elephant for three hours.The Bartons' behaviour is an example of:

A) affluenza
B) trickle down theory
C) conspicuous consumption
D) conspicuous waste

Question 53

The concept of the potlatch,the extravagant feast and display and often even the destruction of wealth or possessions (to show that one can afford to)characteristic of the Kwakiutl Indians of the Pacific Northwest,is analogous to the modern concept of:

A) conspicuous consumption.
B) social class.
C) the idle rich.
D) reciprocal demand theory.

Question 54

Joshua was born into a wealthy family and never had to work in his life.He eventually became bored with his life and went looking for a job to keep him busy.His parents were very angry with him and would not speak to him.Joshua could be categorized as belonging to the:

A) inviduous class.
B) conspicuous class.
C) middle class.
D) leisure class.

Question 55

Measuring social class within marketing research has been hampered by a major limitation of the available measures.Most social class instruments are ________.

A) based too much on income to be valuable in marketing.
B) badly dated and not as valid today as they once were.
C) based on education, which has not been shown to influence consumer behaviour.
D) biased toward sociological variables that have nothing to do with marketing.

Question 56

What is currently true regarding pet populations in Canada?

A) There are approximately 3 million cats.
B) Tthere are approximately 9 million dogs.
C) There are more than 5 million dogs.
D) There are four times more pets than children under 18.

Question 57

What modern Canadian ceremony would come closest in intent to a Native American potlatch?

A) a baptism
B) a marriage
C) a university graduation
D) a rock concert

Question 58

Family size depends on all of the following factors except for ________.

A) education level
B) religion
C) province of residence
D) the availability of birth control

Question 59

One problem in assigning people to a social class is status inconsistency.For example,consumers who earn at least 15 percent less than the median for their class must often make certain sacrifices to maintain the appearance of living up to class expectations.They are said to be:

A) culture-bound.
B) underprivileged.
C) status-seekers.
D) the paradox class.

Question 60

Trisha grew up in a drug-ridden inner-city neighborhood.Through sheer determination and intelligence,Trisha is now a medical doctor teaching on the staff of a large university hospital.Trisha is proud of what she has accomplished,but sometimes she feels like she isn't quite sure who she really is.The concept of ________ was developed to assess the impact of such inconsistencies.

A) status crystallization
B) hierogamy
C) a taste culture
D) inconsistent markers

Question 61

________ is the classification scheme that segments consumers in terms of changes in income and family composition and changes in demands placed on income.

A) Full nest II
B) Empty nest
C) Delayed full nest
D) Family life cycle

Question 62

Achieved status is acknowledged when an individual obtains material wealth by some unusual good fortune,like winning the lottery.

Question 63

Harry's Health Foods in Montreal markets juices,yogurt,and fruit.Their best target market would most likely be:

A) adolescents.
B) young professionals with no children.
C) young females.
D) families with young children.

Question 64

Basically,the concept of stratification of the society is a universal phenomenon.

Question 65

Ellen was asked to fill in a questionnaire.She described herself as having the most "modern" sex-role attitudes,as more likely to engage in exercise,and as consuming more alcohol than people in other age groups.Which of the family life cycle categories would Ellen best fit?

A) young bachelors and newlyweds
B) full nest I
C) full nest II
D) empty nest

Question 66

Yoandra is one of those people who have to look after their children but also have an aging parent to support.Such people are often called:

A) the boomerang group.
B) the latchkey generation.
C) the sandwich generation.
D) the boomlet cohort.

Question 67

Social mobility is possible in almost any society if the person possesses something that the culture highly values.

Question 68

In China,an economic decline is rapidly decreasing the size of the middle-class segment.

Question 69

In the Middle East,women with money tend to seek out the latest in Western luxury brands.

Question 70

Conspicuous waste is the opposite of conspicuous consumption because one is aimed at showing how important a person's wealth is,and the other is aimed at showing how unimportant his or her wealth is.

Question 71

There is no evidence of a pecking order for people.

Question 72

Social mobility refers only to upward social class movement.

Question 73

The family life cycle concept is particularly useful to marketers because:

A) it helps to re-affirm traditional family values.
B) the focus on long-term changes in family priorities helps to predict demand for specific product categories over time.
C) marketers too often overlook families in favour of younger individual consumers.
D) it recognizes the increasing number of women in the work force.

Question 74

Gourmet Foods Inc.specializes in luxury items such as high-end appetizers and sweets..Their best target would most likely be:

A) young marrieds.
B) middle-aged consumers.
C) single professionals.
D) older consumers.

Question 75

"Consumer confidence" refers to how sure consumers feel about their being able to make the right product and brand choices.

Question 76

People for whom productive work is taboo were termed the leisure class by Veblen.

Question 77

The concept of social class has been valuable in marketing because it tells researchers how money is spent.Unfortunately,however,social class has failed to tell marketers how much money will be spent within each class.

Question 78

In predicting demand for specific product categories over time,the usefulness of the family life cycle has been limited because it failed to take into account all of the following,EXCEPT:

A) changing roles of women.
B) acceleration of alternative lifestyles.
C) single-parent households.
D) changes in demands placed on incomes.

Question 79

People within the same social class tend to have similar lifestyles by virtue of their income levels and common tastes.

Question 80

Because a person's occupation tends to be strongly linked to his or her use of leisure time,allocation of family resources,political orientation,and so on,this variable is often considered to be the single best indicator of social class.