Deck 3: Scanning the Marketing Environment

Question 1

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

A)Social forces can have a dramatic impact on marketing strategy.
B)In social forces demographics usually have little impact on marketing strategy compared to psychographics.
C)Social forces within a corporation can have a serious effect as to who is hired and fired.
D)Social forces are used to empower workers to improve their performance.
E)Of all the environmental forces, social forces are the easiest to manipulate.

Answer 1

A

Question 2

There were four steps in the GPS revolution.First __________; second, regulatory changes were made allowing cell phone frequencies and former military technologies available for commercial use; third, competitive forces developed new products and services; and finally consumer changed becoming "geo-enthusiasts."

A)GPS technology became a necessity rather than a luxury
B)profits exceeded costs resulting in GPS units became cash cows
C)new technologies were developed and became readily available
D)demand exceeded production capabilities so multiple new production facilities were built
E)industry backed a campaign to increase the number of students going into the applied sciences

Answer 2

C

Question 3

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 threats.
C)setting up a regimented schedule for assessing the performance of different divisions within a firm.
D)initiating an internal talent search to identify employees for promotion, who not only do their jobs well, but who can think "outside the box."
E)requiring all employees to spend time outside the office to avoid the "ivory tower" syndrome.

Answer 3

B

Question 4

Today, the GPS revolution is making the entire marketplace __________ for consumers and marketers.

A)efficiency-based
B)market-based
C)time-based
D)location-based
E)boundary-free

Question 5

There were four steps in the GPS revolution.First new technologies were developed and became readily available; second, regulatory changes were made allowing cell phone frequencies and former military technologies available for commercial use; third, competitive forces developed new products and services; and finally __________.

A)demand exceeded production capabilities
B)profits exceeded costs and GPS units became cash cows
C)GPS technology became a necessity rather than a luxury
D)consumers changed becoming "geo-enthusiasts"
E)the International Agreement for Space Communication (IASC) allowed placement of additional satellites for use by all nations

Question 6

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 at least every five years.
D)Environmental scanning focuses primarily on geographical factors.
E)There is too much information in environmental scanning to make it viable for small firms.

Question 7

The technology behind the GPS is the use of __________ to triangulate location, speed, direction, and time.

A)a grid of 32 satellites in space
B)a grid of LAN centers at every degree of latitude
C)a computer network located at every ten degrees of longitude
D)a computer network in all major capitols of the world
E)a series of interconnected web networks

Question 8

You are the director of marketing for Littleton Hospital.You are doing 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 baby boomers in your geographic area will increase during the next five years.
B)By the year 2015, baby boomers will control more than 50 percent of all consumer expenditures.
C)The community has seen a rise in dual-income couples who bring with them larger disposable incomes.
D)By the year 2020, robotics will play a major role in American society.
E)Twenty percent of the local population makes over $50,000 a year.

Question 9

Google's myspace.com is a social network that is targeted primarily to people under the age of 25.Increasing use of myspace.com as a networking tool for this target market is an example of how __________ forces impact the marketing environment.

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

Question 10

There were four steps in the GPS revolution.First new technologies were developed and became readily available; second, __________; third, competitive forces developed new products and services; and finally consumer changed becoming "geo-enthusiasts."

A)GPS technology became a necessity rather than a luxury
B)profits exceeded costs resulting in GPS units became cash cows
C)demand exceeded production capabilities so multiple new production facilities were built
D)industry backed a campaign to increase the number of students going into the applied sciences
E)regulatory changes were made allowing cell phone frequencies and former military technologies available for commercial use

Question 11

The social forces of the environment include the __________ of the population and its values.Changes in these forces can have a dramatic impact on marketing strategy.

A)living standards
B)social class
C)demographic characteristics
D)dialect
E)ethics

Question 12

One of the world's largest publishers was unprepared for recent increases in the demand for books about security.If the publisher had __________, it would have been more prepared for the shift in demand.

A)created an operational plan
B)noticed changing demographics
C)noticed changes in ethnic composition
D)shifted funds from its product development department
E)tracked environmental trends as a part of its ongoing operation

Question 13

There were four steps in the GPS revolution.First new technologies were developed and became readily available; second; regulatory changes were made allowing cell phone frequencies and former military technologies available for commercial use; third __________, and services; and finally consumers changed becoming "geo-enthusiasts."

A)demand exceeded production capabilities
B)competitive forces such as Garmin and TomTom, developed new products
C)profits exceeded costs resulting in GPS units became cash cows
D)GPS technology became a necessity rather than a luxury
E)production was shipped overseas greatly reducing production costs

Question 14

"Geo-enthusiast" refers to

A)people who are concerned about the environment and willing to do something about it.
B)firms that seek out new markets in all parts of the world regardless of a nation's wealth.
C)Generation "Y" members who have an extreme desire to travel.
D)people who use information about their location to be more social.
E)companies specializing in the promotion of global expansion.

Question 15

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 the customers' changing tastes and providing something different from other retailers.In addition, because of the high value of the merchandise, The Lemon Tree's management is exploring the use of computerized inventory controls and sales order processing.From this description, one can infer that the environmental category of least importance to The Lemon Tree, at this particular time, would be

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

Question 16

More magazine is a publication designed to appeal to women over the age of 40.Demand for such magazines is an example of how __________ forces impact the marketing environment.

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

Question 17

The demographic characteristics of the population and its values are referred to as

A)social forces.
B)economic forces.
C)psychographics.
D)aspects of cultural values.
E)subjective consumer data.

Question 18

Which of the following statements regarding GPS is most accurate?

A)GPS applications are primarily limited to ultimate consumers (owners of GPS units) who are trying to find directions.
B)GPS systems are still quite cost prohibitive and difficult to use; they are more suited for corporate use than for personal use.
C)GPS systems are currently under fire for creating an information monopoly.
D)GPS systems can be used not only for finding directions, but can be used by friends playing "tag," and manufacturers and suppliers tracking deliveries.
E)Although very profitable at the height of their popularity, new applications for GPS use are limited.

Question 19

From the start of the war on terrorism, over $200 billion has been spent on the war effort in Iraq.According to an environmental scan of the United States, this military expenditure is an example of a change in __________ forces.

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

Question 20

The social forces of the environment include the demographic characteristics of the population and its __________.Changes in these forces can have a dramatic impact on marketing strategy.

A)living standards
B)social class
C)values
D)dialect
E)culture

Question 21

Olay's promotions for its Total Effects cleansing cloths, which fight signs of aging, are targeted toward

A)echo-boomers.
B)baby boomers.
C)members of Generation Y.
D)Generation Xers.
E)members of Generation Z.

Question 22

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

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

Question 23

An ad for State Farm 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

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

Question 24

The term demographics refers to

A)the description of a population according to its values or cultural beliefs.
B)an objective measurement of a person's likelihood to purchase a good or service.
C)the psychological profile of a prospective consumer.
D)the relative position of a population to an urban center.
E)the description of a population according to selected characteristics such as age, gender, ethnicity, and income.

Question 25

Environmental scans have shown that the population of the United States is undergoing dramatic change.Generally the population is becoming larger, older, and more diverse.By 2030, the number of people who are 65 years of age or older could make up 20 percent of the U.S.population.This change in the U.S.population is an example of __________ changes to which marketers must respond.

A)cyclical population growth
B)psychographic
C)demographic
D)situational segment
E)culturally significant

Question 26

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

A)prospecting
B)behavioral analysis
C)statistical analysis
D)demographics
E)psychographics

Question 27

More magazine is a new publication designed to appeal to women over the age of 40.Demand for such magazines is an example of how changing __________ characteristics impact the marketing environment.

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

Question 28

The most recent estimates indicate that there are 6.8 billion people in the world today, and the population is likely to grow to 9.35 billion by 2050.The term used to refer to this growth is called __________.

A)population explosion
B)population expansion
C)inhabitants growth
D)general explosion
E)population eruption

Question 29

Studies of the __________ characteristics of the U.S.population suggest several important trends.Generally, the population is becoming larger, older, and more diverse.Marketers are developing products that will appeal to these target markets.

A)competitive
B)regulatory
C)geographic
D)demographic
E)economic

Question 30

Generation X refers to

A)the generation of children born between 1946 and 1964.
B)the generation of children born between WWI and WWII.
C)the 15% of the population born between 1965 and 1976, also called the baby bust.
D)the 72 million Americans born between 1977 and 1994, also called echo boom or boomlets.
E)the generation of children born at the millennium, also called the unknown generation.

Question 31

Generally, the U.S.population is becoming

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

Question 32

Baby boomers are an important target market because they

A)include most of the important business leaders in the United States.
B)represent a small proportion of the population, but have large disposable incomes.
C)have the longest life expectancies; therefore, they will remain active in the market place for the longest period of time.
D)account for the majority of purchases of most consumer products and services.
E)will be able to pass along significant wealth to their children, the generation that will succeed them.

Question 33

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

A)growing.
B)shrinking.
C)decreasing in Africa.
D)increasing in Europe.
E)decreasing in Latin America.

Question 34

There is a greater concern for health and well-being in the United States.This is most likely evidenced by

A)increased sales of Cigar Aficionado magazine.
B)the revamping of the format for Parents magazine.
C)the increased number of women in management positions.
D)the opening of more Starbucks coffee houses.
E)more advertising for exercise equipment.

Question 35

Why is it likely that the word "minority" as it is used today will have different implications in the future?

A)There will be stronger limits on immigration so the presence of minorities will be less noticeable.
B)The size of most ethnic groups will double during the next two decades.
C)Members of Generation Y are more socially conscious and embrace diversity.
D)The term minority is politically incorrect; we are all equal members of the human race.
E)The word won't change at all; the group with the lowest population, regardless of its size, will always be labeled "minority."

Question 36

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

A)276 million.
B)300 million.
C)325 million.
D)340 million.
E)373 million.

Question 37

It is predicted that the number of people in the U.S., over the age of 65, will __________ by 2030.

A)almost double
B)be significantly less than the growth of children under 16
C)increase at the same world-wide rate
D)decrease at the same world-wide rate
E)begin to decrease, relative to previous growth rates

Question 38

The global demographic trends that have many marketing implications include the

A)decreasing markets of South America.
B)increasing markets of China and India.
C)increased propensity to save by the elderly in developed countries.
D)decreasing interest in entrepreneurship in developing countries.
E)decreasing exports from developing countries.

Question 39

Which of the following statements regarding baby boomers is most accurate?

A)Baby boomers are important to the consumer market because of their increased earnings and participation in the workforce.
B)Baby boomers are more educated and therefore more proactive in making their needs known.
C)Baby boomers are important to the market because they are leaving significant amounts of wealth to their children.
D)Baby boomers are more personally and financially secure because they did not have to live through any major wars.
E)Baby boomers are much more likely to spend their money on others than on themselves.

Question 40

Generation X is the label often given to

A)persons 65 years old and older.
B)the "upbeat" or "carefree" generation.
C)persons born between 1965 and 1976.
D)the generation born between baby-boomers and their parents.
E)those people who were born during baby boomer years but who don't fit any of the traditional baby boomer behavioral profiles.

Question 41

The generation of children born to baby boomers is sometimes referred to as

A)baby boomers.
B)baby busters.
C)boomerangs.
D)bumpers.
E)boomlets.

Question 42

Younger members of Generation Y are also referred to as

A)Baby boomers.
B)Baby busters.
C)Bleeding hearts.
D)Millennials.
E)Boomerangs.

Question 43

Generation X is becoming

A)the least healthy generation since the 1950s.
B)the largest growing segment of business travelers.
C)less interested in investing in their future and more interested in spending their money.
D)less tolerant of those not in their own cohort group.
E)increasingly more interested in themselves than in others.

Question 44

Generation Y refers to

A)the generation of children born between 1946 and 1964.
B)the generation of children born between WWI and WWII.
C)the 15% of the population born between 1965 and 1976, also called the baby bust.
D)the 72 million Americans born between 1977 and 1994, also called echo boom or boomlets.
E)the generation of children born at the millennium, also called the unknown generation.

Question 45

When compared to baby boomers, members of Generation X are more likely to invest their money in __________.

A)entertainment
B)non-durables
C)discretionary spending
D)diamonds
E)real estate

Question 46

Marketers have developed generational marketing programs because

A)it is important for generations to communicate with one another.
B)it is better to find one market niche and stay with it rather than cross generational lines.
C)it doesn't really matter when a person is born; what really matters is when a person buys.
D)members of each generation are distinctive in their attitudes and consumer behavior.
E)even though people are labeled part of a generational cohort doesn't mean they will have the same buyer behavior as everyone else.

Question 47

FIGURE 3-1 FIGURE 3-1
Which generational cohort is the Hyatt Place ad in Figure 3-1 above trying to reach?

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

Question 48

This generation is known as a savvy and demanding group of consumers who feel personally responsible for making a difference in the world.They also have an extraordinary optimism about their potential for fame and fortune.

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

Question 49

FIGURE 3-2
Which generational cohort is the Samsung ad in Figure 3-2 above most likely trying to reach?

A)the baby bust generation
B)Generation X
C)baby boomers
D)Generation Y
E)Generation Z

Question 50

Americans born between 1977 and 1994 are referred to as

A)Generation X.
B)baby boomers.
C)Generation Y.
D)the baby bust generation.
E)Generation Z.

Question 51

Which generational cohort views wireless communication as a lifeline to friends and family?

A)the baby bust generation
B)Generation Y
C)baby boomers
D)Generation X
E)Generation Z

Question 52

Generation X consumers refers to

A)people that like to rely on others.
B)somewhat prone to extravagance.
C)poorly educated.
D)self-reliant and entrepreneurial.
E)generally not supportive of racial and sexual diversity.

Question 53

The name given to the group of consumers who are self-reliant, entrepreneurial, supportive of racial and sexual diversity, and not prone to extravagance is __________.

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

Question 54

Which generational cohort were the first to use Web-enabled mobile phones to stream video?

A)Generation X
B)Generation Y
C)Generation Z
D)baby boomers
E)the baby bust generation

Question 55

Which of the following is an example of how Generation Y members are different from other generations?

A)They are parents of the baby boomers.
B)They are attracted to purposeful work where they have control.
C)They represent the first generation that has less than the previous generation.
D)They represent the children of the first decrease in birthrate in the U.S.since WWII.
E)They have little interest in communication relative to other generations.

Question 56

The 15% of the population born between 1965 and 1976, also called the __________ refers to Generation X.

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

Question 57

Survivors: The Series is a very popular show.It shows a group of sixteen strangers placed in two competitive teams of eight.Each team must survive in a natural environment that is harsh and demanding.A reviewer described Survivors: The Series as a competition of baby boomers versus Generation X.What can you infer from this statement?

A)The reviewer was surprised that baby boomers and members of Generation X were not cooperating because they usually do.
B)That people over the age of 50 distrust anyone who is not a member of their own generation.
C)Baby boomers want the same things as Generation X members; this caused the conflict between them.
D)This behavior was to be expected because baby boomers and members of Generation X are typically quite different from each other.
E)People in Generation X resent the fact that baby boomers have monopolized all the higher end jobs.

Question 58

The Sierra Club is environmentalism's oldest continuously operating organization.In 2001, the growth of the organization had plateaued when its members elected a new 23 year-old president who promised to use MTV artists to create public service announcements about the organization to rekindle interest among his peers-members of

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

Question 59

The generation of children born to baby boomers, a period of increasing births, is sometimes referred to as a(n)

A)baby boomer.
B)baby buster.
C)boomerang.
D)echo-boom.
E)bumper.

Question 60

Generation Y, also known as __________, are determined to make a difference in the world, and by doing so, make the world a better place.

A)political activists
B)keeners
C)millenials
D)aggressors
E)reformers

Question 61

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

A)multi-attitudinal marketing programs.
B)multi-disciplinary marketing programs.
C)multicultural marketing programs.
D)multi-lifestyle marketing programs.
E)multi-lingual marketing programs.

Question 62

To assist marketers in gathering data on the population, the Census Bureau has developed a classification system to describe the varying locations of the population.The system consists of two types of __________.

A)geometric areas
B)algebraic areas
C)statistical areas
D)numerical areas
E)labor areas

Question 63

The U.S.Census Bureau has developed a two-level classification system that reflects the varying locations of the population.The smaller of these classifications is called the

A)consolidated metropolitan statistical area.
B)secondary marketing statistical area.
C)combined marketing statistical area.
D)micropolitan statistical area.
E)metropolitan statistical area.

Question 64

Minority racial and ethnic groups (excluding Caucasians) are concentrated in geographic regions of the United States.Native American groups are heavily concentrated in

A)Arizona.
B)Colorado.
C)Nebraska.
D)North Dakota.
E)South Dakota.

Question 65

If a metropolitan statistical area contains a population of 2.5 million or more, it may be subdivided into smaller areas called __________.

A)population divisions
B)numerical divisions
C)metropolitan divisions
D)combined divisions
E)statistical divisions

Question 66

HSBC Bank International Ltd.(Europe's largest bank) selected its advertising agency because that agency was "always sensitive to the possibility that something might not translate well or may offend superstitions about colors or numbers." Its advertising agency was responsive to

A)psychographic differences.
B)population shifts.
C)racial and ethical diversity.
D)a value consciousness.
E)macroeconomics.

Question 67

Culture refers to

A)the moral and ethical beliefs of a family passed down from generation to generation.
B)voluntary pastimes associated with the fine arts, such as ballet, music, and theater.
C)the set of values, ideas, and attitudes that are learned and shared among the members of a group.
D)the description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.
E)the concern for obtaining the best quality, features, and performance of a product or service.

Question 68

The U.S.Census Bureau has developed a classification system that reflects the varying locations of the population.The largest of these classifications is called the

A)consolidated metropolitan statistical area (CMSA).
B)secondary marketing statistical area (SMSA).
C)combined marketing statistical area (CMSA).
D)primary marketing statistical area (PMSA).
E)metropolitan statistical area (MSA).

Question 69

A notable trend of the U.S.population is the changing racial and ethnic composition.__________, who may be from any race, currently make up 15 percent of the U.S.population.

A)African American
B)American Indian
C)Asian American
D)Mexicans
E)Pacific Islanders

Question 70

Micropolitan statistical area refers to

A)a metropolitan 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 their geographic isolation.
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 71

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)secondary marketing statistical area.
E)combined marketing statistical area.

Question 72

If a metropolitan statistical area contains a population of 2.5 million or more, it may be subdivided into smaller areas called metropolitan divisions.In addition, adjacent metropolitan statistical areas and micropolitan statistical areas may be grouped into __________ statistical areas.

A)covariance
B)sampling
C)correlation
D)regression
E)combined

Question 73

Approximately one in __________ U.S.residents is African American, American Indian, Asian American, Pacific Islander, or a representative of another racial or ethnic group.

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

Question 74

Which of the following statements regarding culture is most accurate?

A)Culture is easily influenced by contemporary trends.
B)Culture plays a far less significant role in consumer behavior than racial identity.
C)Because the U.S.is considered a "melting pot," cultural aspects of consumer behavior are not easily identified.
D)Culture incorporates not only the demographics of a community but its buying behaviors as well.
E)Culture incorporates the set of values, ideas, and attitudes that are learned and shared among the members of a group.

Question 75

Multicultural marketing refers to

A)multi-national firms that operate in an expanded global marketplace.
B)collaborations and partnerships between firms from different countries designed to serve the broadest customer base possible.
C)combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races multi-attitudinal marketing programs.
D)franchise agreements that allow companies from one country to operate in foreign countries without having to make product adaptations.
E)firms whose board of directors, management, and employees represent a diverse group of races, religions, and ethnicities.

Question 76

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

A)family values
B)morals
C)culture
D)group values
E)ethics

Question 77

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)consolidated metropolitan statistical area.
D)secondary marketing statistical area.
E)combined marketing statistical area.

Question 78

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 metropolitan statistical area of 2.5 million people or more.
C)a cluster of exurbs that function as a single unit due to their geographic isolation.
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 79

Members of Generation Y are idealistic and eager to get started making the world a better place.One way they hope to achieve their goal is through __________.

A)environmental sustainability
B)inter-generational dialogue
C)political activism
D)fiscal conservatism
E)educational reform

Question 80

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

A)the west coast
B)midwestern states
C)eastern urban areas
D)the northeast seaboard
E)western and southern states