CHAPTER 4
1) Which of the following is part of the microenvironment of a firm's marketing environment? A) the political state of the country in which the firm exists B) the cultural forces that exist in a society C) the suppliers who work with the company D) the technological resources available to the company E) the different demographic trends in the market Answer: C Difficulty: Moderate Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 2) Demographic, economic, natural, technological, political, and cultural forces form the ________ of an organization. A) supply chain B) macroenvironment C) marketing intermediary network D) internal environment E) microenvironment Answer: B Difficulty: Easy Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 3) The responsibility for setting a company's mission, objectives, broad strategies, and policies primarily lies with its ________. A) finance department B) research department C) top management D) marketing managers E) human resource managers Answer: C Difficulty: Easy Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 4) Which of the following is part of the microenvironment of a company's marketing environment? A) a just-in-time inventory system used by the compan y when making purchase decisions B) a set of laws that require the company compa ny to scale down its telemarketing calls to customers C) a changing demographic picture that requires the firm to make product adaptations
D) a new technology that would ensure significant cost-cutting if implemented in the firm E) a set of environmental sustainability laws that significantly impact the c ompany's production processes Answer: A Difficulty: Moderate Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytic thinking 5) ________ provide the resources needed by a company to produce its goods and services. A) Wholesalers B) Suppliers C) Physical distribution firms D) Media firms E) Retailers Answer: B Difficulty: Easy Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 6) ________ are distribution channel firms that help a company find customers or make sales to them. A) Resellers B) Suppliers C) Producers D) Logistics firms E) Credit companies Answer: A Difficulty: Easy Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 7) Which of the following has the primary function of helping a company target and promote its products to the right markets? A) marketing services agencies B) resale marketers C) service providers D) physical distribution firms E) credit companies Answer: A Difficulty: Easy Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment
8) A marketing intermediary would most likely help a firm by ________. A) negotiating with labor unions regarding wages, h ours, and benefits B) providing technical expertise on the production and design of goods C) competing directly with the firm in a certain product category D) supplying the raw materials needed for manufacturing the firm's products E) moving the firm's goods from production points to distribution centers Answer: E Difficulty: Moderate Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 9) Which of the following is most likely a financial pu blic? A) community organization B) minority group C) corporate attorney D) stockholder E) newspaper Answer: D Difficulty: Moderate Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 10) Monfax Corporation insures manufacturers, distributors, and consumers against the loss or damage of goods during transportation after a pu rchase or sale. In this case, Monfax is an an example of a ________. A) wholesaler B) retailer C) financial intermediary D) physical distribution firm E) marketing service agency Answer: C Difficulty: Difficult Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 11) Which of the following is an example of a media public? A) community organization B) minority group C) television station D) banking institution E) federal government Answer: C Difficulty: Moderate
Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 12) Kelstone Developers is planning to build a new shopping mall that would require the partial acquisition of a nearby public park. Walking Green, an environmental group, challenges the plan citing environmental destruction. In response to the demands of Walkin g Green, Kelstone Developers promises to build a huge park-like wal kway around the mall. Walking Green is an example of a(n) ________ in this scenario. A) financial public B) government public C) citizen-action public D) internal public E) media public Answer: C Difficulty: Moderate Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytic thinking 13) Minority groups that question a company's compan y's marketing decisions most likely belong to ________ publics. A) general B) local C) citizen-action D) media E) financial Answer: C Difficulty: Easy Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 14) The town of Genter recently recentl y witnessed a devastating hurricane that crippled the town's infrastructure. Q-Mart, a retail chain that plans to open a new retail store in Genter, organizes a program to help the people of Genter. The program consists of providing free meals to those who lost their dwellings in the hurricane. What section of the marketing microenvironment is Q-Mart most likely trying to reach? A) suppliers B) marketing intermediaries C) local publics D) competitors E) employees Answer: C Difficulty: Moderate Chapter LO: 1
Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytic thinking 15) The citizen-action publics in a company's marketing environment include ________. A) employees and managers of the company B) stockholders and investment analysts C) government trade agencies D) environmental groups E) news channels Answer: D Difficulty: Easy Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 16) Which of the following is an example of a local public? A) a community organization that addresses welfare issues in its neighborhood B) a supplier responsible for sourcing most of the raw materials used in production C) a company director who is working to improve the organization's public image D) a bank that helps a company acquire loans E) a federal regulatory agency that monitors business practices Answer: A Difficulty: Moderate Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 17) Which of the following are examples of internal publics of a company? A) newspapers, magazines, television stations, blogs, and other Internet media B) governmental departments and agencies that regulate businesses C) neighborhood residents and community organizations D) the managers, board of directors, and workers of the company E) the general public that is directly affected by the company Answer: D Difficulty: Easy Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 18) According to the text, ________ are the most important actors in a company's microenvironment. A) stockholders B) employees C) suppliers D) resellers E) customers
Answer: E Difficulty: Easy Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 19) ________ markets consist of individuals and households that buy goods and services for personal use. A) Consumer B) Business C) Government D) Wholesaler E) Retailer Answer: A Difficulty: Easy Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 20) Which of the following is most likely categorized as a business market? A) government agencies that buy goods and services to produce public services B) individuals who buy goods and services for personal consumption C) firms that buy goods and services for further processing D) firms that buy goods and services to resell for profit E) retail outlets that buy goods and services to sell at discounted prices Answer: C Difficulty: Moderate Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 21) Reseller markets consist of ________. A) government agencies that buy goods and services to produce public services B) individuals who buy goods and services for personal consumption C) firms that buy goods and services to assemble o verseas D) firms that buy goods and services to sell at a profit E) firms that buy goods and services for further processing Answer: D Difficulty: Moderate Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 22) Dextora Technologies manufactures microprocessors and caters exclusively to private manufacturers that produce high-end computers. Which type of market does Dextora directly target? A) retail market
B) government market C) consumer market D) business market E) reseller market Answer: D Difficulty: Moderate Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytic thinking 23) JJ Distributors Ltd. buys electronic products from manufacturers for wholesale and sells them to various retail outlets. To which of the following markets does JJ Distributors Ltd. directly cater? A) business markets B) reseller markets C) manufacturer markets D) supplier markets E) consumer markets Answer: B Difficulty: Moderate Chapter LO: 1 Course LO: Discuss the fundamental fundamental concepts of marketing marketing AACSB: Analytic thinking 24) ________ is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics. A) Sociobiology B) Demography C) Behavioral ecology D) Environmental studies E) Political science Answer: B Difficulty: Easy Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 25) Members of which of the following generational groups were born between 1946 and 1964? A) Millennial B) Generation X C) Generation Z D) baby boomer E) Lost Generation Answer: D Difficulty: Easy Chapter LO: 2
Course LO: Identify factors that influence a company's microenvironment and macroenvironment 26) Which of the following is most likely a true statement about baby boomers? A) They are the first generation to have grown up with computers. B) They constitute the largest demographic group i n the United States. C) They were born between 1965 and 1976. D) They are the most educated generation of Americans. E) They are the wealthiest generation in U.S. history. Answer: E Difficulty: Moderate Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 27) To which of the following generational groups do zoomers belong? A) Millennial B) Generation X C) Generation Z D) Lost Generation E) baby boomer Answer: E Difficulty: Easy Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 28) Which generational group controls the highest percentage of disposable income in the th e United States? A) baby boomer B) Generation X C) Millennial D) Generation Z E) Lost Generation Answer: A Difficulty: Moderate Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 29) Secure is a financial services and insurance company. The company's compan y's most profitable division is one that sells the Secure Future P lan. The Secure Future Plan targets customers who are entering retirement and want long-term savings so they can remain financially independent in the later years of their life. The marketing team at Secure has most likely targeted the plan at ________. A) Millennials B) baby boomers
C) Generation Xers D) Generation Zers E) the Lost Generation Answer: B Difficulty: Difficult Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytic thinking 30) Which of the following is most likely a charac teristic of Generation Xers? A) They were the first group to grow up u p in the Internet era. B) They comprise a considerably larger population than the baby boomers. C) They prefer quantity over quality of products. D) They are the least educated generation to date. E) They are generally unreceptive to ad pitches that make fun of tradition. Answer: A Difficulty: Moderate Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 31) Which generational group is most likely less materialistic when compared with other groups? A) Generation Z B) Generation X C) baby boomer D) Millennial E) the Lost Generation Answer: B Difficulty: Moderate Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 32) Which of the following is most likely a charac teristic of the Millennial generation? A) They have very little knowledge of using digital media. B) They are a smaller population than Generation X. C) They are the wealthiest generation in the United States to date. D) They like to engage in two-way brand conversations. E) They typically avoid using technology while buying products. Answer: D Difficulty: Moderate Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 33) Which of the following is the most financially strapped generation in the post-recession era?
A) the Millennials B) Generation X C) Generation Z D) the Lost Generation E) the baby boomers Answer: A Difficulty: Easy Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 34) Members of which generational group are referred to as echo boomers? A) the Lost Generation B) Generation X C) Generation Z D) the baby boomers E) Generation Y Answer: E Difficulty: Easy Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 35) Which generational group consists of the kid, teen, and tween markets? A) Generation Y B) Millenial C) Generation Z D) Generation X E) Lost Generation Answer: C Difficulty: Easy Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 36) Which generational group is most comfortable using di gital technologies? A) Millennial B) Zoomer C) Generation X D) Generation Z E) Lost Generation Answer: D Difficulty: Easy Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment
37) Which of the following is most likely a true statement about generational groups in the United States? A) The Millennials account for nearly half of all discretionary consumer spending in the United States. B) The Generation Xers are the most educated generation to date. C) The baby boomers comprise the poorest segment of the population. D) The Generation Xers form the largest segment of the population. E) The Millennials are the most financially secure generation. Answer: B Difficulty: Moderate Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 38) Which of the following is a geographic geo graphic shift that has been observed in the United States in recent times? A) fewer Americans moving to Sunbelt states B) fewer Americans moving to the South C) more Americans moving to the Midwest D) more Americans moving to densely populated cities E) more Americans moving to micropolitan areas Answer: E Difficulty: Moderate Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 39) Which of the following has resulted from the increased educational levels of the U.S. population? A) lower acceptance of technological changes B) greater job growth for professional workers C) higher number of manufacturing jobs D) lower mobility of the U.S. population E) lower number of women in the workforce Answer: B Difficulty: Moderate Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 40) One of the demographic trends seen in the United States over the last few decades is the decrease in the proportion of ________. A) professional workers B) manufacturing workers C) white-collar workers D) telecommuters
E) female employees Answer: B Difficulty: Easy Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 41) Which of the following factors would fall under the demographic environment for marketers? A) the growth rate of a company's compa ny's competitors B) the prices quoted by a company's suppliers C) the profitability of a company's shareholders D) the level of technological advancement in a company's production processes E) the educational level of a company's customers Answer: E Difficulty: Easy Chapter LO: 2 Course LO: Discuss the fundamental fundamental concepts of marketing marketing 42) Which of the following is a demographic trend observed in the United States? A) More people are working remotely. B) Fewer women are entering the workforce. C) Literary rates are dropping in the United States. D) More people are migrating from the suburbs to the cities. E) More people are shifting toward the manufacturing industry. Answer: A Difficulty: Moderate Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 43) Which of the following is most likely a true statement about diversity in the United States? A) Most ethnic groups are shedding their ethnic culture and shifting toward a unified American culture. B) Asian Americans constitute the largest ethnic group in the United States. C) Ethnic and cultural differences exist since different ethnic groups remain isolated from one another. D) Various ethnic groups mix together but also retain their cultural differences. E) The nation's ethnic populations are set to decrease in coming decades. Answer: D Difficulty: Moderate Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Diverse and multicultural work work environments 44) Subsistence economies are best defined as economies that ________.
A) constitute rich markets for many different kinds of goods and services B) consume most of their own agricultural a gricultural output and offer few market opportunities C) offer outstanding marketing opportunities for innovative technological products D) offer huge marketing opportunities for industrial goods E) export all their agricultural and industrial products Answer: B Difficulty: Moderate Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 45) Which of the following changes most likely fo rced marketers to shift to value marketing after the Great Recession of 2008/2009? A) a decrease in customer spending in all product categories B) an increase in the prices of products C) an increase in the purchasing power of consumers D) a decrease in the emphasis placed by customers on product quality E) an increase in the demand for luxury products Answer: A Difficulty: Moderate Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 46) Changes in variables, such as income, cost of living, interest rates, and savings and borrowing patterns most likely reflect changes in the ________ environment of a company. A) economic B) natural C) demographic D) political E) cultural Answer: A Difficulty: Moderate Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 47) Fargo Inc. is a carbonated beverage manufacturer that has many manufacturing plants around the world. It is planning to shift from using thermal power to wind power for its manufacturing plants in the Netherlands to decrease dependency on nonrenewable sources of energy. This scenario depicts Fargo's concern for its ________ environment. A) economic B) natural C) demographic D) political E) cultural Answer: B
Difficulty: Moderate Chapter LO: 3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytic thinking 48) Which of the following represents a change chan ge in the technological environment of a marketing firm? A) increased use of cause-related marketing B) increased use of RFID systems to track products C) increased need to comply with environmental en vironmental regulations D) increased use of value marketing techniques and promotions E) increased need to engage in mass marketing over market segmentation Answer: B Difficulty: Moderate Chapter LO: 3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 49) Which of the following is most likely a true statement about the technological environment of a firm? A) Every new technology makes an older technology obsolete. B) Product safety laws decrease the time taken to introduce new technologies to the market. C) New technologies fail to create many new opportunities in the marketplace. D) The technological environment of a firm remains constant over time. E) New product regulations typically reduce a firm's research costs. Answer: A Difficulty: Moderate Chapter LO: 3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 50) In a marketer's macroenvironment, the ______ __ environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. A) political B) cultural C) technological D) natural E) internal Answer: A Difficulty: Easy Chapter LO: 4 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 51) Governments most likely enact business legislation to ________.
A) prevent unfair competition in the market B) allow a single large monopoly in the market C) prevent alternative products from entering the market D) protect the interests of producers rather than society E) dissociate social responsibility from commerce Answer: A Difficulty: Easy Chapter LO: 4 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 52) Which of the following is most likely true abou t business legislation? A) Business laws are enforced only in international markets and not in local markets. B) Business laws fail to prevent unfair competition among the different compa nies in a market and tend to encourage monopolies. C) Business laws usually remain constant over time. D) Local, national, and state business laws rarely overlap with one another. E) Business laws that are enforced by government a gencies have a major impact on o n a company's marketing performance. Answer: E Difficulty: Moderate Chapter LO: 4 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 53) An ethical concern about companies that use online marketing techniques and involve consumer information in the process is that these companies ________. A) fail to provide value-priced products for online customers B) track, share, and misuse browsing details of unknowing customers C) provide too many alternative products online which confuse customers D) rarely follow the marketing orientation when devising promotional offers online E) fail to reach their target customers through online marketing Answer: B Difficulty: Moderate Chapter LO: 4 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Information technology 54) Which of the following is an example ex ample of cause-related marketing? A) a firm selling groceries without using retail outlets B) a firm selling energy drinks and relying on social media C) a firm selling low-cost health insurance through online sites D) a firm selling hybrid and other low-emission automobiles E) a firm selling electronics and giving a percenta ge of sales to charity Answer: E Difficulty: Moderate
Chapter LO: 4 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 55) Ursa Martin, a book publisher, has decided d ecided to work with Hope in Children, a charity foundation that helps feed and educate edu cate children in poor countries. Ursa Martin has decided that a percentage of revenue from every book it sells will go to the charity. The books are marketed by conveying this message to customers. Which of the following marketing techniques describes Ursa Martin's association with Hope in Children? A) joint venture marketing B) cause-related marketing C) niche marketing D) green marketing E) test marketing Answer: B Difficulty: Moderate Chapter LO: 4 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytic thinking 56) Which of the following is most likely true abou t people's beliefs and values? A) Belief in marriage is a secondary belief for most Americans. B) Secondary beliefs and values cannot be changed. C) Marketers have a high chance of changing core beliefs and values. D) Secondary beliefs are passed on from parents pa rents to children. E) Core beliefs and values have a high degree of persistence. Answer: E Difficulty: Moderate Chapter LO: 4 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 57) Which of the following is most likely a true statement about people's views about organizations? A) Many people view work at an organization as a required chore. B) People don't expect organizations to carry out society's work. C) Confidence in political organizations has increased in recent years. D) Loyalty towards employers has increased in the past two decades. E) Many people today see organizations as a source of personal satisfaction. Answer: A Difficulty: Moderate Chapter LO: 4 Course LO: Identify factors that influence a company's microenvironment and macroenvironment
58) Which of the following is most likely a characteristic of firms that adopt a reactive approach toward the marketing environment? A) They develop strategies to change the marketing environment. B) They take advantage of the opportunities provided by the environment. C) They take aggressive actions to affect the marketing environment. D) They view the marketing environment as a controllable element. E) They do not accept the marketing environment as it is. Answer: B Difficulty: Moderate Chapter LO: 5 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 59) Which of the following is most likely true abo ut companies that take a proactive stance toward the marketing environment? A) They develop strategies to change the marketing environment. B) They believe that marketing strategies are bound by the current environment. C) They passively accept the marketing environment in its current state. D) They view the marketing environment as an uncontrollable element. E) They design strategies according to environmen tal forces in the market. Answer: A Difficulty: Moderate Chapter LO: 5 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 60) Which of the following marketing actions would a proactive organization most likely take? A) engaging in cause-related marketing activities B) passively accepting the marketing environment C) running advertorials to shape public opinion D) carefully monitoring the regulatory environment E) developing universally acceptable mission statements Answer: C Difficulty: Moderate Chapter LO: 5 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 61) Customer markets are part of a manufacturer's microenvironment. Answer: TRUE Difficulty: Easy Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 62) Marketing intermediaries supply resources needed by a company to produce its goods and services.
Answer: FALSE Difficulty: Easy Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 63) Resellers are a part of the financial publics pu blics of an organization. Answer: FALSE Difficulty: Moderate Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 64) A customer buys a can of Pepsi from a Walmart store. In this scenario, Walmart is a supplier in Pepsi's value delivery network. Answer: FALSE Difficulty: Moderate Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 65) Advertising agencies that help a company compa ny target a certain section of customers cu stomers are marketing intermediaries. Answer: TRUE Difficulty: Easy Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 66) A bank that helps a company finance transactions is both a financial intermediary and a financial public. Answer: TRUE Difficulty: Moderate Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 67) The general public's image of a company affects organizational buying behavior. Answer: TRUE Difficulty: Easy Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 68) The single most important demographic trend in the United States is the changing chan ging age structure of the population.
Answer: TRUE Difficulty: Easy Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 69) Generation X is the poorest poo rest generation in U.S. history. Answer: FALSE Difficulty: Easy Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 70) The Generation Zers completely disregard traditional media. Answer: FALSE Difficulty: Easy Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 71) The rapid increase in the number of people who telecommute has created a booming small office/home office market in the United States. Answer: TRUE Difficulty: Easy Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 72) Many companies have started to target the LGBT market segment which has significant buying power. Answer: TRUE Difficulty: Moderate Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Diverse and multicultural work work environments 73) The purchasing power of a population is part of the technological environment of a company's macroenvironment. Answer: FALSE Difficulty: Easy Chapter LO: 2 Course LO: Identify and discuss discuss the factors factors influencing consumer buying behavior 74) Subsistence economies provide the best marketing ma rketing opportunities to companies. Answer: FALSE Difficulty: Easy
Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 75) In the context of income inco me distribution, the middle class in the United States has grown in size over the past several decades. Answer: FALSE Difficulty: Easy Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 76) The income distribution in the United States is equal across all demographics. Answer: FALSE Difficulty: Easy Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 77) The Consumer Product Safety Commission has created complex regulations for testing new drugs before they are sold to the public. Answer: FALSE Difficulty: Moderate Chapter LO: 3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 78) Stringent product regulations have helped to lower research costs and decrease time between b etween new product ideas and their introduction to the market. Answer: FALSE Difficulty: Moderate Chapter LO: 3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 79) The Federal Trade Commission Co mmission enforces laws that prevent unfair competition in business. Answer: TRUE Difficulty: Easy Chapter LO: 4 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 80) Government regulations are intended to prote ct consumers, companies, and societal interests. Answer: TRUE Difficulty: Easy Chapter LO: 4
Course LO: Identify factors that influence a company's microenvironment and macroenvironment 81) Cause-related marketing techniques are typically unprofitable for businesses, which is why it is a rarely used form of corporate giving. Answer: FALSE Difficulty: Moderate Chapter LO: 4 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 82) Marketers have a better chance of taking advantage of a person's secondary beliefs than his or her core beliefs. Answer: TRUE Difficulty: Easy Chapter LO: 4 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 83) Effective marketing managers take a reactive rather than a proactive approach to the marketing environment. Answer: FALSE Difficulty: Easy Chapter LO: 5 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 84) People's orientation to their society has no influence on their consumption patterns and attitudes toward a marketplace. Answer: FALSE Difficulty: Moderate Chapter LO: 5 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 85) A company that adopts a reactive marketing stance would most likely view the marketing environment as an uncontrollable element to which it must adapt. Answer: TRUE Difficulty: Moderate Chapter LO: 5 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 86) What are marketing intermediaries? What are the different types of marketing intermediaries? Answer: Marketing intermediaries help the company promote, sell, and distribute its products to final buyers. They include resellers, physical distribution firms, marketing services agencies, and
financial intermediaries. Resellers are distribution channel firms that help the company find customers or make sales to them. These include wholesalers and retailers that buy and resell merchandise. Physical distribution firms help the company stock and move goods from their points of origin to their destinations. Marketing services services agencies are the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the firm target and promote its products to the right markets. Finan cial intermediaries include banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods. Difficulty: Moderate Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 87) Markwin Electronics is a company that only on ly sells products online. Orders are taken through an interactive Web site, and goods are shipped out through a small warehouse the company owns. Markwin employees also handle the shipmen t of goods to desired destinations. How could marketing intermediaries help Markwin expand its business? Answer: (Students' answers may vary. The answer given below is indicative.) Marketing intermediaries help the company promote, sell, and distribute its products to final buyers. Marketing intermediaries already have channels ready that are directly connected to customers. Thus by utilizing intermediaries, Markwin can tap into a much bigger source of sales. Intermediaries include resellers, physical distribution firms, marketing services a gencies, and financial intermediaries. These include wholesalers and retailers who bu y and resell merchandise. Physical distribution firms can help Markwin stock and move goods from their points of origin to their destinations. Marketing services services agencies are the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right markets. Finan cial intermediaries include banks, credit companies, insurance companies, and other o ther businesses that can help finance transactions for Markwin, or insure against the risks associated with the buying and selling of goods. Marketing intermediaries can form an important component of the company's overall value delivery network. Markwin's marketers must recognize the importance of wo rking with their intermediaries as partners rather than simply as channels through which the y sell their products. Difficulty: Difficult Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytic thinking 88) How do the different types of publics influence a company's marketing environment? Answer: A public is any group that has an actual or potential interest interest in or impact on an organization's ability to achieve its objectives. Financial publics: This group influences the comp any's ability to obtain funds. Banks, investment analysts, and stockholders are the major financial publics. Media publics: This group carries news, features, editorial opinions, and other content. It includes newspapers, magazines, television stations, and blogs and other social media.
Government publics: Management must take government developments into account. Marketers must often consult the company's lawyers on issues of product safety, truth in advertising, and other matters. Citizen-action publics: A company's marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others. Its public relations department can help it stay in touch with consumer and citizen groups. Local publics: This group includes neighborhood residents and community organizations. Large companies usually create departments and programs that deal with local community issues and provide community support. General public: A company needs to be concerned about the general public's attitude toward its products and activities. The public's image of the company affects its buying behavior. Internal publics: This group includes workers, managers, volunteers, and the board of directors. Difficulty: Moderate Chapter LO: 1 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 89) Discuss how an increased educational level in the United States has affected the American household and how marketers have responded to these changes. Answer: (Students' answers may vary. The answer given below is indicative.) The U.S. population is becoming better educated. The rising number of educated edu cated professionals will affect not just what people buy but also how they buy. The number of working women has also increased greatly, growing from under 40 p ercent of the U.S. workforce in the late 1950s to 58 percent today. Among households made up of married couples with children, 58 percent are dual-income households; only the husband works in 28 percent. The significant number of women in the workforce has spawned the child day-care business and increased the consumption of career-oriented women's clothing, convenience foods, financial services, and time-saving services. Difficulty: Moderate Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 90) How do companies use marketing techniques to respond to the changing chan ging diversity in the U.S. population? Provide examples to illustrate your response. Answer: (Students' answers may vary. The answer given below is indicative.) The population of the United States seems to have become more of a "salad bowl," in which various ethnic and cultural groups have mixed mix ed together but have maintained their diversity by retaining and valuing important ethnic and cultural differences. Marketers now face increasingly diverse markets, both at home and abroad, as their operations become more international in scope. The U.S. population is about 64 percent white, with Hispanics at almost 17 percent and African Americans at just over 13 percent. The U. S. Asian American population now totals more than 5 percent of the total U.S. population. The nation's ethnic populations are expected to explode in coming decades. Most large companies, from P&G, Walmart, Allstate, and Bank of America to McDonald's and Levi Strauss, now target specially designed products, ads, and promotions to one or more of these groups. For example, Procter & Gamble has long been the leader in African American advertising, spending nearly 50 percent more than the second-place
spender in Hispanic media. P&G also tailors products to the specific needs of black consumers. For instance, its CoverGirl Queen Collection is specially formulated "to celebrate the beauty of women of color." Difficulty: Difficult Chapter LO: 2 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytic thinking 91) How has the Great Recession of 2008/2009 affected consumer spending in the United States? Answer: Economic factors can have a dramatic effect effect on consumer spending and buying behavior. For example, until fairly recently, American consumers spent freely, fueled by income growth, a boom in the stock market, rapid increases in housing values, and other economic good fortunes. They made purchases freely, seemingly without caution, amassing record levels of debt. However, the free spending and high expectations of those days were dashed by the Great Recession of 2008/2009. As a result, consumers have now adopted a back-to-basics sensibility in their lifestyles and spending patterns that will likely persist for years to come. The y are buying less and looking for greater value in the things that they do bu y. In turn, value marketing has become the watchword for many marketers. Marketers in all industries are looking for ways to offer today's more financially frugal buyers greater value with just the right combination of product quality and good service at a fair price. Difficulty: Difficult Chapter LO: 2 Course LO: Identify and discuss discuss the factors factors influencing consumer buying behavior 92) What is environmental sustainability? How does it affect the marketing environment? Provide examples to illustrate your response. Answer: Concern for the natural environment has spawned the so-called green movement. Today, enlightened companies go beyond what government regulations dictate. They are developing strategies and practices that support environmental sustainability – an an effort to create a world economy that the planet can support indefinitely. Environmental sustainability means meeting present needs without compromising the ability of future generations to meet their needs. Many companies are responding to consumer demands with more environmentally responsible products. Others are developing recyclable or biodegradable packaging, recycled materials and components, better pollution controls, and more en ergy-efficient operations. For example, Timberland's mission is about more than just making rugged, high-quality boots, shoes, clothes, and other outdoor gear. The brand is about doing everything it can to reduce the environmental footprint of its products and processes. More and more, these companies are recognizing the link between a healthy ecology and a healthy economy. They are learning that environmentally responsible actions also mean good bu siness. Difficulty: Moderate Chapter LO: 3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 93) Describe the major trends in the natural environmen t that marketers need to be aware of. o f.
Answer: Marketers should be aware of several trends in the natural natural environment. The first involves growing shortages of raw materials. Air and water ma y seem to be infinite resources, but some groups see long-run dangers. Air pollution chokes many of the world's large cities, and water shortages are already a big problem in some parts of the United States and the world. Renewable resources, such as forests and food, also have to be used wisely. Nonrenewable resources, such as oil, coal, and various minerals, pose a serious problem. Firms making products that require these scarce resources face large cost increases, i ncreases, even if the materials remain available. A second environmental trend is increased pollution. Industry will almost always damage the quality of the natural n atural environment. Consider the disposal of chemical and nuclear wastes; the dangerous mercury levels in the ocean ; the quantity of chemical pollutants in i n the soil and food supply; and the littering of the environment with non-biodegradable bottles, plastics, and other packaging materials. A third trend is increased government intervention in natural resource management. The governments of different cou ntries vary in their concern and efforts to promote a clean environment. The general hope is that companies around the world will accept more social responsibility and that less expensive devices can be found to control and reduce pollution. Difficulty: Difficult Chapter LO: 3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytic thinking 94) How are American businesses utilizing new technologies to improve their inventory management? Provide examples to illustrate your response. Answer: (Students' answers may vary. The answer given below is indicative.) New technologies can offer exciting opportunities for marketers. The technological advancement of radio-frequency identification (RFID) transmitters is rapidly changing the way companies control their inventory. RFIDs can be embedded embe dded in the products you buy. Many firms are using RFID technology to track products through v arious points in the distribution channel. For example, Walmart has strongly encouraged suppliers shipping products to its distribution centers to apply RFID tags to their pallets. So far, more than 600 Walmart suppliers are doing so. And retailers such as American Apparel, Macy's, and Bloomingdales a re now installing item-level RFID systems in their stores. Fashion and accessories maker Burberry even uses chips imbedded in items and linked to smartphones to provide p ersonalized, interactive experiences for customers in its stores and at runway shows. Difficulty: Difficult Chapter LO: 3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytic thinking 95) Why is monitoring the technological environment crucial for marketing professionals? Answer: (Students' answers may vary. The answer given below is indicative.) The technological environment is perhaps the most dramatic force now shaping our destiny. d estiny. The technological environment changes rapidly. New technologies create new markets and opportunities. However, every new technology re places an older technology. Transistors hurt the vacuum-tube industry, digital photography hurt the film business, and MP3 players and digital
downloads are hurting the CD business. When old industries fought or ignored new technologies, their businesses declined. Thus, marketers should watch the techno logical environment closely. Companies that do not keep up will soon find their products outdated. If that happens, they will miss new product and market opportunities. Difficulty: Moderate Chapter LO: 3 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytic thinking 96) Discuss how the political environment affects the marketing environment. Answer: Marketing decisions are strongly strongly affected by developments in the political environment. The political environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. Governments develop public policy to guide commerce – sets sets of laws and regulations that limit business for the good of society as a whole. Almost every marketing activity is is subject to a wide range of laws and regulations. Well-conceived regulation can encourage competition and ensure fair markets for goods and services. In the United States, there are many laws created at the national, state, and local levels, and these regulations often overlap. Moreover, regulations are constantly changing; what was allowed last year may now be prohibited, and what was prohibited may now be allowed. Marketers must work hard to keep up with changes in regulations and their interpretations. Difficulty: Moderate Chapter LO: 4 Course LO: Identify factors that influence a company's microenvironment and macroenvironment 97) Give an instance where a company exhibits social responsibility through business. Answer: (Students' answers may vary. The answer given below is indicative.) To exercise their social responsibility and build more positive images, man y companies are now linking themselves to worthwhile causes. Cause-related marketing has become a primary form of corporate giving. It lets companies "do well b y doing good" by linking purchases pu rchases of the company's products or services with benefiting worthwhile causes or cha ritable organizations. For example, the P&G Tide Loads of Hope program provides mobile laundromats laund romats and loads of clean laundry to families in disaster-stricken areas – P&G P&G washes, dries, and folds clothes for these families for free. Down the street, needy peop le will probably find the P&G Duracell Power Relief Trailer, which provides free batteries and flashlights as well as charging stations for phones and laptops. Difficulty: Difficult Chapter LO: 4 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytic thinking 98) Discuss the social and ethical concerns that th e boom in digital technology has created for marketers. Answer: (Students' answers may vary. The answer given below is indicative.)
The boom in Internet marketing has created a new set of social and ethical issues. Critics worry most about online privacy issues. There has been an explosion in the amount of personal digital data available. Users, themselves, supply some of it. The y voluntarily place highly private information on social networking sites, such as Facebook or LinkedIn, or on genealogy genealog y sites that are easily searched by anyone with a computer or a smartphone. However, much of the information is systematically developed by businesses seeking to learn more about their customers, often without consumers realizing that they are under the microscope. Legitimate businesses track consumers' Internet browsing browsing and buying behavior and collect, analyze, and share digital data from every move consumers make at their online sites. Critics worry that these companies may now know too much and might use digital data to take unfair advantage of consumers. Although most companies fully disclose their Internet privacy policies and most try to use data to benefit their customers, abuses do occur. Difficulty: Moderate Chapter LO: 4 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytic thinking 99) Discuss with an example how marketers have adapted to people's changing views toward nature. Answer: (Students' answers may vary. The answer given below is indicative.) People vary in their attitudes toward the natural world. Recently, however, people have recognized that nature is finite and fragile; it can be destroyed or spoiled by b y human activities. This renewed love of things natural has created a 41-million-person "lifestyles of health and sustainability" (LOHAS) market, consumers who seek out everything from natural, organic, and nutritional products to fuel-efficient cars and alternative medicine. For exa mple, Tom's of Maine caters to such consumers with sustainable, all-natural personal care products – toothpaste, toothpaste, deodorant, mouthwash, and soap – made made with no artificial colors, flavors, fragrances, or preservatives. The products are also "cruelty-free" (no animal testing or animal ingredients). ingredients). Tom's makes sustainable practices a priority in every aspect of its bu siness and strives to maximize the recycled content and recyclability of its packaging. Finally, Tom's donates 10 percent of its pretax profits to charitable organizations. Difficulty: Difficult Chapter LO: 4 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytic thinking 100) Draw a comparison between the reactive and proactive approaches a company can take toward a changing marketing environment. Answer: Many companies view the marketing environment as an uncontrollable element to which they must react and adapt. They passively accept the marketing environment and do not try to change it. They analyze environmental forces and design strategies that will help the company avoid the threats and take advantage of the opportunities the environment provides. This is a reactive approach. Other companies t ake a proactive stance toward the marketing environment. Instead of letting the environment define their strateg y, they craft a strategy that defines the environment. Rather than assuming that strategic options are bounded by the current
environment, these firms develop strategies to change the environment. Proactive firms take aggressive actions to affect the publics and forces in their marketing environment. Such companies hire lobbyists to influence legislation affecting their industries and stage media events to gain favorable press coverage. They The y run advertorials (ads expressing editorial points of view) and blogs to shape public opinion. They press lawsuits and file complaints with regulators to keep competitors in line, and the y form contractual agreements to better control their distribution channels. Difficulty: Moderate Chapter LO: 5 Course LO: Identify factors that influence a company's microenvironment and macroenvironment AACSB: Analytic thinking
