51) Which of the following has encouraged marketers to go beyond what is required by law and pursue environmentally sustainable strategies?
A) the EPA
B) the black market
C) the green movement
E) green intervention
52) Many firms today use RFID technology to ________.
A) identify new target markets
B) analyze threats and opportunities in the macroenvironment
C) move toward environmental sustainability
D) track products through various points in the distribution channel
E) track patterns of consumer online behavior
53) Which country leads the world in research and development spending?
E) the United States
54) Which of the following is a result of regulations set up by the Food and Drug Administration and the Consumer Product Safety Commission?
A) The time between new product ideas and their introduction to the market has decreased.
B) Spending on research and development has decreased.
C) Research costs for companies have grown.
D) More companies have failed to meet safety standards.
E) Companies are more focused on making practical, affordable versions of products.
55) Marketers should be aware of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. This is most accurately described as the ________ environment.
56) Even the most liberal advocates of free-market economies agree that the system works best with ________ regulation.
D) at least some
57) Legislation affecting business around the world will continue to ________.
A) become standardized
C) remain steady
E) threaten the American domestic economy
58) The legislation created to limit the number of commercials aired during children’s programming is called the ________
A) Children’s Online Privacy Protection Act
B) Child Protection Act
C) Fair Packaging and Labeling Act
D) Children’s Television Act
E) Consumer Product Safety Act
59) Business legislation has been created for three basic reasons: to protect companies from each other, to protect consumers, and to ________.
A) protect the interests of society
B) regulate prices
C) increase world trade
D) regulate monopolies
E) promote social responsibility
60) The recent rash of business scandals and increased concerns about the environment have created fresh interest in the issues of ________ and ________.
A) ethics; promotion responsibility
B) ethics; social responsibility
C) finances; employee discrimination
D) management ethics; insider trading
E) promotion; pricing
61) A company or association’s ________ is designed to help guide responses to complex social responsibility issues.
A) code of ethics
B) cause-related marketing
C) discretion in enforcing regulations
E) core value system
62) The primary concern for consumers with the boom in Internet marketing is ________.
B) false advertising
E) social responsibility
63) Cause-related marketing is a(n) ________.
A) response to customer needs
B) primary form of environmental awareness
C) primary form of corporate giving
D) lobbying response to corporate legislative problems
E) attempt to influence consumers’ core beliefs
64) A society’s basic values, perceptions, preferences, and behaviors are all part of its ________ environment.
65) Marketers should understand that a society’s core beliefs and values have a high degree of ________.
66) Your company is making negotiations to enter a market in Lower Albania. You would most likely discover that ________ beliefs and values are open to change in this country.
67) A society’s ________ are expressed in how people view themselves, organizations, society, nature, and the universe.
A) social codes
B) cultural values
D) public policies
68) Watching the cultural trends of how people view others, observers have noted an increased interest in ________.
A) socializing with co-workers
B) going out less and staying home more
D) do-it-yourself projects
E) adventurous experiences
69) Trends in people’s views of organizations indicate that which of the following has increased in the past twenty years?
A) employees’ loyalty to their employers
B) confidence in American political organizations
C) distrust in big American businesses
D) confidence in the American education system
E) employees’ view of work as a source of satisfaction
70) Watching the cultural trends of how people view society, observers have noted that since September 11, 2001, marketers responded to the increased ________ of Americans with special products and promotions.
D) foreign intolerance
71) Which of the following is a potential downside to using patriotic themes in marketing programs?
A) Patriotism has been on the decline in the past decade.
B) Levels of patriotism fluctuate rapidly.
C) Such promotions can be viewed as attempts to gain from others’ triumph or tragedy.
D) Americans are less confident in political organizations.
E) Few marketers currently use this technique.
72) The LOHAS market is most closely associated with which of the following cultural trends?
A) environmental sustainability
B) increased patriotism
C) distrust of political systems
D) organized religion
73) Cultural forecasters have noted a renewed American interest in ________.
A) dominating and taming nature
B) the fine arts
C) work as a source of satisfaction and self-definition
E) reforming social classes
74) Marketers can take a(n) ________ by taking aggressive action to affect the publics and forces in their marketing environments.
A) environmental stance
B) proactive stance
C) natural perspective
D) natural-management perspective
E) relationship-building perspective
75) Which of the following explains why few companies have been successful in shutting down critics who post complaints on the Web?
A) The criticism is usually interpreted as protected speech.
B) The courts have typically refused to hear any cases against individual critics.
C) Web sites using “I hate” or “sucks” in the title along with a company’s name can be easily confused with the company’s actual Web site.
D) Registering domain names to prevent critical Web sites is a lengthy process.
E) Companies have found that it is more effective to respond in kind with attacks against critics.
76) LandPort Transportation and Omega Warehousing move and store the products your company sells. The two businesses are examples of ________.
B) marketing services agencies
C) marketing intermediaries
D) physical distribution firms
E) geographic segments
77) Innovations is a producer of electronic circuits that power a variety of technological devices produced by other companies. Innovations sells its products to ________ markets.
78) ING, an international insurance and financial services company, is the primary sponsor of the annual New York City Marathon, which is attended by over one million fans and watched by approximately 300 million viewers worldwide. The ING logo and name appear throughout the race course. ING most likely sponsors the event in order to appeal to which type of public?
79) Noora DeLange is helping her company develop a marketing program for a new product line. The program involves emphasizing experience over acquisition and uses a marketing pitch that is less overt than the company’s previous programs. The marketing program is most likely designed to appeal to which of the following demographic groups?
A) Gen Xers
B) nontraditional households
C) “micropolitan” populations
D) baby boomers
E) manufacturing workers
80) Wholesome Soups, a maker of organic soups, is starting a new marketing campaign emphasizing the ease of preparing and eating Wholesome Soups on the go. Print, television, and Internet ads feature college-aged students enjoying Wholesome Soups in between classes and during study breaks. Wholesome Soups’ new marketing campaign is most likely aimed at which of the following?
A) baby boomers
C) Gen Xers
E) the SOHO market
81) Which of the following demographic trends is likely the most responsible for the increasing number of people who telecommute?
A) the migration toward micropolitan and suburban areas
B) the move from rural to metropolitan areas
C) the increasing number of nontraditional households
D) the growing percentage of married couples who do not have children
E) the declining number of manufacturing workers
82) Chet Hoffman’s chain of travel agencies has identified the lesbian, gay, bisexual, and transgender community as a growing market that spends an increasing percentage of its income on travel. Which of the following would be the LEAST effective component of a marketing plan for Chet to take advantage of this opportunity?
A) develop a presence on LGBT-oriented social networking sites
B) position his agency as focused on specialized experiences
C) implement a mass marketing campaign
D) place specially-targeted ads in gay-themed publications
E) advertise on LOGO
83) With an expected increase in ethnic diversity within the American population, marketers are most likely to place a greater emphasis on which of the following?
A) geographic segmentation
B) differing advertising messages
C) mass marketing
D) “us and them” paradigms
E) tiered markets
84) The green movement will likely spark the LEAST interest in which of the following?
A) recycling programs
B) environmentally sustainable strategies
C) social responsibility
D) Internet usage
85) Norma Bernanke is a marketer at a pharmaceutical company that has just developed a new medication to treat asthma. Which of the following components of the political environment should Norma be LEAST concerned with as her company begins to develop a marketing plan for the new product?
A) approval from the Food and Drug Administration (FDA)
B) state laws regulating advertising of pharmaceuticals
C) laws enforced by the Federal Trade Commission
D) the Fair Packaging and Labeling Act
E) the Nutrition Labeling and Education Act
86) A regional supermarket chain runs print, radio, and television advertisements announcing that 1% of each of its sales is donated to local after-school programs for underprivileged youth. This is an example of ________ marketing.
87) Which of the following is an example of a core belief?
A) Marriage is important.
B) Americans should display their patriotism.
C) The comforts of home are more important than entertainment outside of the home.
D) Extended warranties are never worth the money consumers pay for them.
E) Professionals should wear business clothes to work.
88) Consumers undertaking which of the following would be most likely to be identified as “cocooning” or “nesting”?
A) taking a cruise
B) taking up a new sport
C) having a home entertainment center installed
D) hiking the Grand Canyon
E) traveling to Asia
89) Toyota’s Prius was the first mass-produced hybrid vehicle, known for its fuel efficiency and environmental friendliness. The Prius was initially most likely marketed to which of the following groups?
A) the SOHO market
B) the LOHAS market
C) the LGBT market
D) the Asian American market
E) the Millennials market
90) Assume that you are a manager at a firm that has hired lobbyists to influence legislation affecting your firm’s industry to its advantage. Your firm takes a(n) ________ approach to the marketing environment.
E) team work
91) Which of the following forces would marketers be MOST likely able to influence?
A) geographic population shifts
B) core cultural values
C) income distribution
D) increasing ethnic diversity
E) media publics
92) If baby boomers are predictors of where product and service demand will be, increased demands will most likely be evident in ________ in the upcoming years.
A) university enrollment
B) beer and wine
C) financial services
D) the apparel industry
E) the automobile industry
93) Which of the following best explains why Gen Xers who are parents tend to put family before career?
A) Gen Xers were the first generation of latchkey kids.
B) Gen Xers were minimally affected by the recent economic downturn.
C) Gen Xers are more skeptical about marketing than members of other generations are.
D) Gen Xers are not as educated as members of other generations are.
E) Gen Xers do not face as many economic pressures as members of other generations do.
94) In considering the changing American family, which of the following are marketers likely to consider the LEAST important?
A) The number of traditional households has increased.
B) Baby boomers are hitting retirement age.
C) The number of married couples with both partners working outside of the home has increased.
D) Married couples with children make up less than 25% of the nation’s households.
E) The number of stay-at-home fathers has increased in the past 20 years.
95) Which of the following is the most reasonable to assume as more and more Americans move to “micropolitan areas”?
A) Geographic segmentation may be less critical to marketers.
B) Rural populations will offer an expanding market.
C) Micropolitan areas are likely to offer the same advantages as metropolitan areas.
D) Congested areas are likely to become more ensnarled.
E) Crime rates in metropolitan areas will increase.
96) As a marketer of pesticides, which of the following should give you the LEAST amount of concern?
A) shortages of raw materials
B) increased pollution
C) increased government intervention
D) persistence of cultural values
E) chemical pollutants in the food supply
Refer to the scenario below to answer the following questions.
Casey Brickly opened The Landing on the north shore of Witmer Lake in 1962. With a sandwich counter on one side and a bait shop and grocery on the other, The Landing was an immediate hit with weekend lake visitors and local residents alike. In the summer, boaters parked at the piers and bought all their lake needs?rods and reels, bait, fishing licenses, snacks, soft drinks?at The Landing. Even during the winter months, snowmobilers and ice fishermen were lured to The Landing for a snack and hot coffee or hot chocolate.
As time passed, the business changed and grew tremendously. What was formerly a weekend tourist area gradually became a year-round residential area. Many of the houses, which were built as cottages in the 1950s and 1960s, were remodeled into year-round homes. By the end of the 1970s, the days of small motor boats and 10 mile-per-hour speed limits were gone; skiing and fast speed boats became all the rage. Through it all, The Landing continued to attract flocks of patrons.
In the 1980s, however, Casey started to realize that the grocery area in The Landing could not compete with larger local retailers. He eventually enlarged the sandwich counter, transforming the bait shop and grocery into a restaurant with a full menu typical of any diner.
“Getting rid of the bait shop was hard to do,” Casey admitted. “I still had a summer crowd that relied on us for their fishing needs, but we couldn’t survive a whole year on four months of profit.”
In the early 2000s, the atmosphere of Witmer Lake and the neighboring lakes became upscale. “I could see that people were spending more on their speed boats than what they had originally paid for their cottages!” Casey exclaimed. Many of the cottages were inherited by children and grandchildren of the original owners. Once again, the scene started to change as many of the lake houses were used only as weekend lake homes. Unlike the previous generation, a vast number of the current owners could afford to live closer to their jobs while maintaining lake homes. “At this point, business wasn’t growing,” Casey said.
As local competition continued to increase, Casey converted the diner atmosphere of The Landing into a bar with a lounge area. “The change might have been too drastic,” Casey said, “but it was the only way we could maintain a strong, year-round business in spite of the population shifts and competitive forces.”
97) Which microenvironment actors have affected The Landing the most?
D) natural environment
E) economic environment
98) Which of the following macroenvironmental forces has had the greatest effect on The Landing?
A) the demographic environment
B) the technological environment
C) the sustainable environment
D) the political environment
E) the social responsibility environment
99) Which macroenvironmental force has benefitted The Landing the most?
A) the legal environment
B) the natural environment
C) the economic environment
D) the political environment
E) the technological environment
100) Which of the following demographic forces has most likely influenced the recent upscale atmosphere of the area surrounding Witmer Lake?
A) baby boomers reaching their peak earning and spending years
B) Gen Xers displacing the lifestyles of baby boomers
C) Millennials beginning to assert their buying power
D) the changing structure of the American family
E) the growing ethnic diversity of the country
101) Today’s marketers must successfully build relationships to connect effectively with customers, others in the company, and external partners.
102) When marketing manager Suzie Kwan discusses factors and forces outside marketing, such as political factors that affect marketing management’s ability to build and maintain successful relationships with target customers, she is talking about the external marketing concept.
103) The microenvironment consists of larger societal forces that affect a company, such as demographic, economic, political, and cultural forces.
104) The macroenvironment consists of the factors close to the company that affect its ability to serve its customers, such as suppliers, customer markets, competitors, and publics.
105) Marketing research firms, advertising agencies, media firms, and marketing consulting firms are all referred to as marketing services agencies.
106) Today’s successful marketers recognize the importance of working with their intermediaries as channels through which they sell their products rather than as full-fledged partners.
107) Consumer organizations such as environmental and minority groups that may question a company’s marketing decisions are referred to as local publics.
108) The demographic environment is of major interest to marketers because it involves people, and people make up markets.
109) The single most important demographic trend in the United States that marketers should understand is the changing family structure.
110) As baby boomers reach their peak earning and spending years, they become lucrative markets for financial services, travel, and entertainment.
111) Once thought of as slackers, Gen Xers are now displacing the lifestyles, culture, and materialistic values of the baby boomers.
112) Millennials comprise the most commercially influential group in America today.
113) Millennials represent a larger demographic segment than the baby boomers or Gen Xers.
114) Marketers must increasingly consider the needs of traditional households because this segment of the population is growing more rapidly than nontraditional households.
115) The American workforce today is better educated but less white-collar than it was a generation ago.Answer: FALSE
116) Companies in several industries have recognized the buying power of the gay and lesbian segment of the U.S. population and have begun explicitly targeting these consumers with gay-specific marketing efforts.
117) Significant trends in the natural environment include shortages of raw materials, increased pollution, and decreased government intervention.
118) Cause-related marketing is a slowing trend as companies have abused the practice, using it more to increase sales than to support worthwhile causes.
119) In the cultural environment, core values and beliefs and secondary values and beliefs differ in that core values and beliefs are more open to change.
120) When a company hires lobbyists to influence legislation affecting its industry, it is taking a reactive approach to the marketing environment.
121) Trudie Jones works for a distribution channel firm that helps several electronics companies find customers or make sales to them. Trudie works for a reseller.
122) A company markets wild and crazy games for teens to play at parties. This company’s customer market is a business market.
123) More government legislation and the green movement are the likeliest causes of a general decline in environmental concerns in the past decade.
124) The introduction of new technologies is beneficial to all industries, as new markets and opportunities are created.
125) Today’s technological environment changes more rapidly than core cultural beliefs do.
126) Who are the major players in a company’s microenvironment? Explain the role each major actor plays.
127) In a short essay, differentiate between the basic marketing intermediaries.
128) In marketing, what is a public? Briefly describe the seven main types of publics faced by marketers and explain how marketing might communicate with these publics.
129) How can marketers use information about the demographic environment?
baby boomers, Generation Xers, and Millennials on today’s marketing strategies.
131) What are the major trends in today’s natural environment? How do these trends affect companies?
132) Why is the technological environment such a dramatic force in today’s market?
133) Describe the three main reasons the business legislation is enacted, giving an example of each type of legislation.
134) What is cause-related marketing? Give two examples of the practice and explain why companies participate in cause-related marketing.
135) What is the cultural trend in how people view nature? How does this affect marketers?
136) How have large retailers such as Walmart changed the dynamics behind partnering with resellers?
137) What are two potential drawbacks of creating separate products and marketing programs for each generation?
138) How do baby boomers today differ from previous generations as they neared and reached their sixties?
139) Why might marketers want to target segments of the population based on lifestyles rather than age groups?
140) Give two characteristics of the American family that depict its “nontraditional” nature.
141) How might geographic shifts in population impact marketers?
142) In terms of ethnic and racial makeup, why is the United States today more accurately characterized as a “salad bowl” than a “melting pot”?
143) Briefly explain why Americans amassed record amounts of debt in the 1990s and why the free-spending trend has ended.
144) Why might it be beneficial for marketers to help develop solutions to problems facing the natural environment, such as increased pollution and shortages of raw material?
145) One purpose of government regulation is to protect consumers from unfair business practices. List two areas in which this may occur.
146) How might a marketer act in a socially responsible way toward the general public?
147) Explain the controversy surrounding cause-related marketing.
explained or understood or if they appear to be exploiting a cause in order to increase sales.
148) What is the difference between a core belief and a secondary belief? Give an example of each.
149) Why is it important for marketers to understand people’s views of themselves?
150) What steps might a marketer take to shift from a reactive stance to the marketing environment to a more proactive stance?