Deck 3: Scanning the Marketing Environment

Question 1

Over a period of several decades,coffee consumption declined from 75% of the adult population in 1962 to 49% in 2004.Then,it increased to 64% in 2012.A firm with a good marketing orientation would have

A)found a less volatile product to sell in its strategic business portfolio.
B)invested more money in market research for new product development.
C)hired a new promotional firm.
D)explored the reasons behind these changes in coffee consumption trends.
E)demoted coffee from being a "star" to a "dog" in its growth-share matrix

Answer 1

D

Question 2

The purpose of environmental scanning is to

A)only identify trends in the marketplace.
B)only interpret trends in the marketplace.
C)only forecast trends in the marketplace.
D)identify,interpret,and forecast trends in the marketplace.
E)only identify and interpret trends in the marketplace.

Answer 2

E

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 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.

Answer 3

B

Question 4

Between 1962 and 2012,adult coffee consumption has

A)steadily increased each year.
B)steadily decreased each year.
C)remained steady.
D)increased significantly due to adults consuming prepared coffee away from home at outlets such as Starbucks.
E)fluctuated,first declining and then increasing.

Question 5

Predicting the future in terms of environmental scanning requires assumptions about

A)the total potential investment required to achieve the company's goals.
B)the total potential revenues that could be generated as a result of additional investment now.
C)the number of years the trends will continue and the factors that cause these trends to change.
D)the skills the marketing department has to be able uncover trends in the marketplace.
E)the effectiveness of the tools employed,such as scenario casting.

Question 6

A firm conducting an environmental scan of the marketplace might uncover key __________ like the growth of crowdfunding and 3D printing.

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

Question 7

Coffee consumption among consumers 18 to 24 years old has __________ from 2003 to 2012.

A)increased
B)decreased
C)remained the same
D)fluctuated,first declining and then increasing
E)fluctuated,first increasing and then declining

Question 8

All of the following statements about the environmental forces that have influenced Facebook are true EXCEPT:

A)the Federal Trade Commission (FTC)has had 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 fast and convenient.
C)Google and Facebook are becoming fierce competitors for the role of society's depository of information.
D)the cost of wireless connectivity,Internet service,and smartphones rapidly declined and made social networking affordable for consumers around the world.
E)people became increasingly interested in the social aspects of the Internet,sharing more and more information about themselves.

Question 9

Environmental trends come from all of the following forces EXCEPT:

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

Question 10

All of the following reasons explain the change in adult coffee consumption EXCEPT:

A)many coffee marketers increased the distribution of their coffees in supermarkets.
B)many coffee marketers added new coffee flavors and seasonal blends.
C)there was an increase in coffee consumption since 2003 among those who are 18 to 24 years old.
D)there was a shift in demand from coffee to other competing beverages such as tea,soft drinks,juices,and bottled water.
E)there was an increase in away-from-home consumption due to an increase in consumers' discretionary incomes.

Question 11

The changes in coffee consumption are due to all of the following EXCEPT:

A)McDonald's has recently started selling bags of ground coffee in some of its stores.
B)Coffee marketers like Caribou Coffee are offering new flavors and seasonal blends.
C)The decreased use of Fair Trade certified coffee due to the added expenses incurred as a result of certification and farmer subsidies.
D)Coffee shops are using new machines to automate the brewing and dispensing of coffee.
E)Supermarkets such as Safeway have added Starbucks coffee boutiques within their stores.

Question 12

Which of the following trends identified in an environmental scan is a competitive trend?

A)Robots are becoming viable technologies for housework,surgery,and many forms of labor.
B)Microbusiness impact will increase through peer-to-peer websites.
C)During the recession the consumer saving rate rose to 8.3%;the rate has since declined to 3.7%,indicating more spending.
D)There will be increasing regulatory guidance regarding green and environmental marketing claims.
E)Online concept testing is becoming important ways for consumers to participate in brand and product development.

Question 13

Which of the following trends identified in an environmental scan is a social trend?

A)Robots are becoming viable technologies for housework,surgery,and many forms of labor.
B)Microbusiness impact will increase through peer-to-peer websites.
C)During the recession,the consumer saving rate rose to 8.3%;the rate has since declined to 3.7%,indicating more spending.
D)There will be increasing regulatory guidance regarding green and environmental marketing claims.
E)Consumers are increasingly switching media as they search for short,engaging messages.

Question 14

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

Question 15

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 16

Changes in coffee consumption affect all of the following EXCEPT:

A)supermarkets.
B)government regulators.
C)coffee shops.
D)coffee growers.
E)coffee processors.

Question 17

Over a period of several decades,coffee consumption declined from 75% of the adult population in 1962 to 49% in 2004.Then,it increased to 64% in 2012.A firm with a good marketing orientation would have

A)found a less volatile product to sell.
B)invested more money in alternative beverages such as soft drinks,energy drinks,or smoothies.
C)changed to a new promotional firm.
D)explored the reasons behind these changes.
E)demoted coffee from being a "star" to a "dog."

Question 18

Which of the following trends identified in an environmental scan is a technological trend?

A)New smartphone apps,such as mobile advertising,mobile bar code scanning,and mobile payments will become increasingly more available.
B)Customer-generated content is growing as a competitive advantage.
C)The U.S. ,Japan,China,and EU countries will increase investments in sustainable living infrastructure.
D)Online privacy protection advocacy and regulation will continue to grow.
E)Preordering is becoming important ways for consumers to participate in brand and product development.

Question 19

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 ecological factors.
E)There is too much information generated from environmental scanning to make it viable for small firms.

Question 20

Which of the following trends identified in an environmental scan is an economic trend?

A)The U.S. ,Japan,China,and the E.U.countries will increase investments in sustainable living infrastructure.
B)3D printing is creating a resurgence in domestic manufacturing.
C)Partnerships,collaborations,and co-creation of value will become important dimensions of business rivalry.
D)Healthcare,gun-control,and marijuana regulation are receiving increasing attention.
E)High unemployment and reduced income is increasing demand at discount retailers for lower-cost and smaller-sized products.

Question 21

Which of the following trends identified in an environmental scan is a regulatory trend?

A)3D printing and on-demand capabilities are creating a resurgence in domestic manufacturing.
B)Partnerships,collaborations,and co-creation of value will become important dimensions of business rivalry.
C)The U.S. ,Japan,China,and the E.U.countries will increase investments in sustainable living infrastructure.
D)Health consciousness will lead to more public and private smoke-free area laws.
E)Consumers are increasingly switching media (up to 27 times per hour)as they search for short,engaging messages.

Question 22

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

A)attitudinal forces.
B)psychographic forces.
C)social forces.
D)cultural forces.
E)market forces.

Question 23

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 exploring the use of computerized inventory controls and sales order processing.From this description,one can infer that the LEAST IMPORTANT environmental force to The Lemon Tree at this particular time would be

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

Question 24

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 exports to the United States

Question 25

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)First Lady Michelle Obama's Let's Move! initiative to eliminate childhood obesity.
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 26

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

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

Question 27

Demographics refer 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 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 28

As the director of marketing for Littleton Hospital,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)By the year 2015,baby boomers will control more than 50 percent of all consumer expenditures in the U.S.
C)The Littleton 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.

Question 29

Publishers were surprised by the dramatic success of the book Fifty Shades of Grey and believe that it will 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 30

Changes in the demographic characteristics of the population and its values can have a dramatic impact on __________.

A)the marketing concept era
B)marketing tactics
C)market share
D)marketing metrics
E)marketing strategy

Question 31

More magazine 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 32

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 years old
C)increase at the same worldwide rate
D)decrease at the same worldwide rate
E)begin to decrease,relative to previous growth rates

Question 33

From the start of the war on terrorism,billions have been spent.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 34

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

A)product group profiling
B)demographics
C)behavioral analysis
D)psychographics
E)statistical analysis

Question 35

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 36

MySpace.com is a social network that is targeted primarily to people under the age of 25 years old.In 2005,when MySpace was the leading social network,News Corp,owner of The Wall Street Journal and Fox News,bought the firm for $580 million.Since then,its membership has declined precipitously due to changing consumer preferences.As a result,News Corp.sold MySpace to a group of investors for a paltry $38 million in mid-2011.This is an example of how __________ forces impact the marketing environment.

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

Question 37

The social forces in the environment include the __________ of the population and its values.

A)living standards
B)social classes
C)cohorts
D)ethics
E)demographic characteristics

Question 38

One of the world's largest publishers was totally unprepared for recent increases in the demand for digital books.During 2011,the sale of e-books exceeded the sales of traditional printed paperback books for the first time.If the publisher had __________,it would have been more prepared for this shift in its marketing environment.

A)optimized its distribution by eliminating local and chain store bookstores (like Borders)that failed to meet their sales quotas
B)noticed the change in the demographics of book readers in general
C)noticed the behavioral changes in moviegoers,who now prefer to view 2D and 3D movies in IMAX theaters
D)shifted funds from product development to advertising
E)tracked,as part of its ongoing environmental scanning activities,the sales of e-books sold by other publishers as well as e-book readers sold by Amazon.com (Kindle),Barnes and Noble (Nook),and Apple (iPad)

Question 39

The social forces of the environment include the demographic characteristics of the population and its __________.

A)geographic locations
B)social classes
C)cohorts
D)values
E)ethics

Question 40

Demographics characteristics that describe a population include all of the following EXCEPT:

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

Question 41

Which age segment of the U.S.population is expected to grow to 72 million people or almost 20 percent of the population by 2030?

A)children under the age of 18
B)people aged 65 and over
C)children of baby boomers
D)children of Generation X
E)children of Generation Y

Question 42

Projections show that the population of the world is __________.

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

Question 43

The country expected to have the largest population in 2050 is __________.

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

Question 44

World population projections show that the number of people 60 years of age and older is expected to __________ by 2050.

A)decline by 1 billion
B)double to 4 billion
C)triple to 2 billion
D)decline by 3 billion
E)reach 6 billion

Question 45

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

A)273 million.
B)314 million.
C)323 million.
D)358 million.
E)414 million.

Question 46

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 47

By 2050,the world's population is expected to be __________.

A)5.0 billion
B)5.7 billion
C)6.1 billion
D)7.9 billion
E)9.6 billion

Question 48

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

A)5.0 billion
B)6.3 billion
C)7.1 billion
D)7.9 billion
E)9.5 billion

Question 49

All of the following factors contribute significantly to the rate of change of a country's population (such as the U.S. )EXCEPT:

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 (defined as 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 50

Demographers predict that the number of people in the U.S.aged 65 and over will __________ by 2030.

A)almost double
B)be significantly less than the number of children under 18 years old
C)increase at the same rate as the rate for developing countries
D)increase at the same rate as the rate for developed countries
E)stay the same as today

Question 51

The population explosion has occurred

A)primarily in the developing countries of Latin America,Asia,and Africa.
B)evenly throughout the world.
C)primarily in the United States due to high birth rates and immigration.
D)primarily in the countries of the European Union due to high birth rates and immigration.
E)primarily in developed countries due to better economic,infrastructure,and healthcare conditions.

Question 52

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 53

Which of the following has currently affects the baby boomer generation 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 54

Baby boomers can be defined as the generation of children 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 55

The term that describes 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 56

Baby boomers are an important target market because they (their)

A)workforce participation has made them the wealthiest generation in U.S.history,accounting for an estimated 50 percent of all consumer spending.
B)include most of the important business leaders in the United States.
C)represent a small proportion of the population but have large disposable incomes.
D)have the longest life expectancies,remaining an active participant in the marketplace for a long time.
E)will be able to pass along significant wealth to their children,the generation that will succeed them.

Question 57

The term "minority" is currently defined as "a relatively small group of people who differ from others with respect to race,religion,language,or political persuasion." Why will the term have different implications in the future?

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

Question 58

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

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

Question 59

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 60

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

A)the declining populations in Latin American countries
B)the size of the 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 61

Generation Y is defined as the generation of children born __________.

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

Question 62

Generation Y is sometimes referred to as

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

Question 63

The Lays Kettle Cooked Chips photo shown above is targeted at which generational cohort?

A)echo-boomers
B)Generation Xers
C)baby boomers
D)Generation Yers
E)baby busters

Question 64

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 65

Which of the following statements regarding baby boomers is MOST ACCURATE?

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

Question 66

Which generational cohort,which is becoming the largest cohort in terms of business travel,is the Aloft Hotels ad above most likely trying to reach?

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

Question 67

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 68

Which of the following statements about the marketing activities that target baby boomers is MOST ACCURATE?

A)Some educational institutions have developed degree programs that emphasize sustainable practices.
B)Some hoteliers have remodeled their rooms to make them more casual and "tech-friendly."
C)Some consumer packaged goods firms have reformulated their products to address concerns about salt,sugar,and saturated fat.
D)Some travel agencies have developed distinctive,memorable,and personal vacations (cruises,sightseeing trips,etc. )
E)Some greeting card firms have created birthday cards with sentiments designed for step parents and step children.

Question 69

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)housing

Question 70

Generation X is the label often given to

A)persons born between 1965 and 1976.
B)persons 65 years old and older.
C)those who survived the great depression.
D)the "greatest generation" born between the baby boomer generation and their parents that were called Generation W,the World War II generation.
E)those people who were born since the millennium.

Question 71

All of the following statements about Generation X are true EXCEPT:

A)Generation X is not prone to extravagance.
B)Generation X is replacing baby boomers as the largest segment of business travelers.
C)Generation X is the first generation to have less than the previous generation.
D)Generation X was born during the "baby bust" era because the number of children born each year was declining.
E)Generation X was born during the "echo boom" or "baby boomlet" era because the number of children born each year was rising.

Question 72

The 50 million people of the population born between 1965 and 1976,also called the __________,refers to Generation X.

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

Question 73

The name given to the generational cohort who are described as self-reliant,supportive of racial and ethnic diversity,and better educated than previous generations is __________.

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

Question 74

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

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

Question 75

The 50 million people of the population born between 1965 and 1976,also called the baby bust,refers to __________.

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

Question 76

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 77

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 78

Generation X

A)is the least healthy generation since the 1940s.
B)accounts for the largest amount of consumer spending.
C)is the largest segment of business travelers.
D)is interested in distinctive,memorable,and personal experiences.
E)includes younger members known as millennials.

Question 79

The Prudential ad shown above is targeted at which generational cohort?

A)echo-boomers
B)Generation Xers
C)Generation Yers
D)baby boomers
E)baby busters

Question 80

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