Chapter 04 Test Bank
1. The growth in number of multigenerational households can be attributed to which of the following factors?
A. More adult children are living at home.
B. An increase in ethnic diversity.
C. The Great Recession.
D. More adult children are living at home and An increase in ethnic diversity.
E. All of these choices are correct.
2. Which of the following describes a population in terms of its size, distribution, and structure?
A. geographics
B. psychographics
C. demographics
D. censographics
E. behaviorgraphics
3. Harriett wants to describe the population of a new market in which her firm wishes to enter. She wants to describe
the population in terms of its size, distribution, and structure. Which of the following should she use?
A. psychographics
B. behaviorgraphics
C. censographics
D. demographics
E. geographics
4. Age, gender, education, occupation, and income are examples of __________ variables.
A. demographic
B. holographic
C. geographic
D. psychographic
E. censographics
5. What is the approximate population of the United States today?
A. 100 million
B. 249 million
C. 320 million
D. 350 million
E. 498 million
6. Which of the following is not a reason why the population of the United States has grown steadily since 1960?
A. longer life expectancies
B. increasing birth rate for most of the period between 1960 and today
C. immigration
D. baby boomers moving through child-bearing years
E. All of these are reasons why the population of the United States has grown
7. Which of the following is true regarding the size and distribution of the population of the United States?
A. The population of the United States is approximately 250 million today.
B. The population has grown steadily since 1960 due birth rates that have always been on the increase.
C. The growth has not been even throughout the United States.
D. Northeast states, such as Vermont and Connecticut, are expected to grow dramatically in the next ten years.
E. The population of the United States has continued to decrease since 1960.
8. Which of the following is the most widely applied single cue we use to initially evaluate and define individuals
we meet?
A. age
B. income
C. occupation
D. gender
E. education
9. Which of the following is strongly associated with occupation?
A. income
B. education
C. age
D. income and education
E. income, education and age
10. Approximately what percentage of the U.S. population has a high school degree?
A. 25%
B. 40%
C. 50%
D. 75%
E. 87%
11. Approximately what percentage of the U.S. population has completed college?
A. 30%
B. 43%
C. 50%
D. 75%
E. 87%
12. Juan is interested in knowing occupational influences on purchases of satellite radio systems. Which of the
following occupations are most likely to purchase this type of product?
A. wholesale and retail trade
B. professional, scientific and technical
C. mining and construction
D. wholesale and retail trade and mining and construction
E. All of these choices are correct.
13. Which of the following statements regarding education is false?
A. Education is increasingly critical for a “family wage” job.
B. Traditional high-paying manufacturing jobs that required relatively little education are rapidly disappearing.
C. Education clearly drives income in today’s economy.
D. Education does not influence how one thinks, makes decisions, and relates to others.
E. Education has a strong influence on one’s tastes and preferences.
14. A household’s purchasing power is a function of which of the following?
A. income and accumulated wealth
B. age and gender
C. income and education
D. occupation and income
E. social class and education
15. When comparing income levels by education and gender, which of the following is true?
A. men and women earn about the same income if they have the same education
B. the difference between men and women on earnings occurs mostly at the lower education levels
C. the difference between men and women on earnings occurs mostly at the higher education levels
D. men earn more than women at each level of education
E. women earn more than men at each level of education
16. Budweiser is a popular brand of beer. Part of this company’s market research of U.S. consumers looked at
education levels of beer consumers. What education level is the likely consumer of beer (that with highest
propensity to buy and consumer beer) to have attained?
A. did not graduate high school
B. graduated high school
C. attended college
D. graduated college
E. None of these choices are correct.
17. What is the movement called in which companies have expanded opportunities for less affluent consumers to
afford luxury?
A. mass to class
B. class to mass
C. more to all
D. one for all
E. all for one
18. An estimate by the consumer of how much money he or she has available to spend on nonessentials is known as
A. objective discretionary income (ODI).
B. adjusted gross income (AGI).
C. adjusted discretionary income (ADI).
D. subjective discretionary income (SDI).
E. subjective gross income (SGI).
19. The Martins’ household income is $123,000 per year. However, this family estimates that they have $45,000
available to spend on nonessentials such as vacations and entertainment. The $45,000 represents the Martins’
A. objective discretionary income (ODI).
B. adjusted gross income (AGI).
C. adjusted discretionary income (ADI).
D. subjective discretionary income (SDI).
E. subjective gross income (SGI).
20. Which of the following statements regarding age is true?
A. Proper age positioning is critical for many products.
B. Age affects a consumer’s self-concept and lifestyle.
C. Our age shapes the media we use.
D. Analyzing age cohort groups or generations often provides more meaningful segments and marketing strategies
than merely looking at census age groups.
E. All of these choices are correct.
21. Which age category is expected to experience the largest percentage increase between 2010 and 2020?
A. < 10
B. 20–29
C. 40–49
D. 60–69
E. > 69
22. Procter & Gamble is a major consumer packaged goods manufacturer. Which age category provides the greatest
opportunity for P&G in terms of growth between 2010 and 2020?
A. < 10
B. 20–29
C. 40–49
D. 60–69
E. > 69
23. One’s perceived age, a part of one’s self-concept, is known as
A. felt age.
B. real age.
C. cognitive age.
D. perceptual age.
E. chronological age.
24. Gertrude is 93 years old, but she perceives herself to be about 65 years old. Sixty-five is Gertrude’s __________
age.
A. felt age
B. real age
C. cognitive age
D. perceptual age
E. chronological age
25. Which of the following variables is associated with cognitive age?
A. health
B. education
C. income
D. social support
E. All of these choices are correct.
26. Sam is a healthy 75-year-old man. He is a retired attorney, has a substantial retirement income, and is a member
of several social groups that travel, help others, and encourage lifelong learning. Which of the following is most
likely true about Sam?
A. Sam’s cognitive age is less than 75.
B. Sam’s cognitive age is 75.
C. Sam’s cognitive age is greater than 75.
D. Sam’s cognitive age is 50.
E. Sam’s cognitive age is 85.
27. A(n) __________ is a group of persons who have experienced a common social, political, historical, and
economic environment.
A. census age group
B. age cohort
C. cognitive group
D. chronological group
E. demographic group
28. __________ is the process of describing and explaining the attitudes, values, and behaviors of an age group as
well as predicting its future attitudes, values, and behaviors.
A. Census analysis
B. Demographic analysis
C. Generation analysis
D. Cognitive analysis
E. Cohort analysis
29. Maria is analyzing the baby boom generation by describing and explaining its attitudes, values, and behaviors as
well as predicting its future attitudes, values, and behaviors. Maria is conducting a __________ analysis.
A. cohort
B. generational
C. demographic
D. census
E. cognitive
30. __________ deals with the mature market and is based on the theory that people change their outlook on life
when they experience major life events such as becoming a grandparent, retiring, losing a spouse, or developing
chronic health conditions.
A. Demographics
B. Gerontographics
C. Cognitive psychology
D. Cohort analysis
E. Generational analysis
31. Individuals born before 1930 belong to which generation?
A. pre-Depression generation
B. Depression generation
C. baby boom generation
D. Generation X
E. Generation Y
32. Harold was born in 1923. He entered young adulthood during World War II, and served in the Navy during that
war. He has witnessed radical social, economic, and technological change in his lifetime. To which generation does
he belong?
A. pre-Depression generation
B. Depression generation
C. baby boom generation
D. Generation X
E. Generation Y
33. Consumers 55 years of age and over constitute the __________ market.
A. baby boom
B. mature
C. generational
D. gerontological
E. aging
34. Elsie and her two sisters are all in their mid- to late-60s. They are part of the __________ market.
A. Generation X
B. mature
C. generational
D. gerontological
E. aging
35. Which generation is not part of the mature market?
A. pre-Depression
B. Depression
C. Generation X
D. baby boom
E. All of these choices are part of the mature market
36. Which of the following is a segmentation approach to the mature market that incorporates aging processes and
life events related to the physical health and mental outlook of older consumers?
A. gerontographics
B. cognitive psychology
C. demographics
D. ageographics
E. censographics
37. Which cohort was born between 1930 and 1945?
A. pre-Depression generation
B. Depression generation
C. baby boom generation
D. Generation X
E. Generation Y
38. Xavier was born in 1940. He was too young to remember World War II, and he matured during the prosperous
years of the 1950s and early 1960s. His favorite singer was, and still is, Elvis Presley. To which generation does he
belong?
A. pre-Depression generation
B. Depression generation
C. baby boom generation
D. Generation X
E. Generation Y
39. Which generation “invented” rock and roll and grew up with music and television as important parts of their
lives?
A. pre-Depression generation
B. Depression generation
C. baby boom generation
D. Generation X
E. Generation Y
40. Which of the following is a segment of mature consumers?
A. Healthy Indulgers
B. Ailing Outgoers
C. Healthy Hermits
D. Frail Recluses
E. All of these choices are correct.
41. Which segment of mature consumers is physically and mentally healthy and is thus active, independent, and out
to enjoy life?
A. Healthy Indulgers
B. Ailing Indulgers
C. Ailing Outgoers
D. Frail Recluses
E. Healthy Hermits
42. __________ have experienced health problems which limit their physical activities, but their positive outlook
means they remain active within physical constraints.
A. Healthy Hermits
B. Ailing Indulgers
C. Ailing Outgoers
D. Frail Recluses
E. Healthy Recluses
43. People in this group retain their physical health, but life events (i.e., death of a spouse) have reduced their self-
concept and they become withdrawn.
A. Healthy Indulgers
B. Ailing Outgoers
C. Healthy Hermits
D. Frail Recluses
E. Ailing Indulgers
44. This segment of mature consumers has accepted their old-age status and has adjusted their lifestyles to reflect
reduced physical capabilities and social roles.
A. Healthy Indulger
B. Ailing Outgoer
C. Healthy Hermit
D. Frail Recluse
E. Ailing Hermit
45. Which of the following is true regarding the baby boom market?
A. Boomers are tech savvy.
B. Boomers are empty nesters who are downsizing.
C. Boomers are retiring early and wealthy.
D. Boomers have the same values and outlook.
E. Boomers are self-centered.
46. The largest, most diverse generational segment is
A. Generation X.
B. Generation Y.
C. Generation Z.
D. baby boomers.
E. Generation Alpha.
47. Which Generation Y segment, identified by Boston Consulting Group and Barkley USA, believes that they can
have a positive impact and make the world a better place?
A. Clean and Green Millennial
B. Gadget Guru
C. Hip-ennial
D. Millennial Mom
E. Old-School Millennial
48. Which generation refers to those individuals born during the dramatic increase of births (i.e., almost 80 million
baby births) between the end of World War II and 1964?
A. pre-Depression generation
B. Depression generation
C. baby boom generation
D. Generation X
E. Generation Y
49. John was born in 1955, and he has only known prosperity in his lifetime. He remembers when President
Kennedy was assassinated, primarily because his family purchased their first color television not long after that
event. While he remembers the Vietnam War, he was too young to be drafted. To which generation does he belong?
A. pre-Depression generation
B. Depression generation
C. baby boom generation
D. Generation X
E. Generation Y
50. Which generation is considered to be more self-centered, individualistic, economically optimistic, skeptical,
suspicious of authority, and focused on the present than other generations?
A. pre-Depression generation
B. Depression generation
C. baby boom generation
D. Generation X
E. Generation Y