80. What two basic approaches are used to measure social status?
A. primary and secondary measures
B. single-item and multi-item indexes
C. position and status measures
D. income and occupation indexes
E. income and education measures
81. Which of the following is not a common single-item index of social class?
A. education
B. occupation
C. income
D. age
E. All of these choices are common single-item indexes of social class.
82. In the Hollingshead Index of Social Position, which is true?
A. occupation is given a higher weight than education
B. occupation is given the same weight as education
C. income is given a higher weight than occupation
D. occupation is given a lower weight than education
E. income is given a lower weight than education
83. The children of Generation Y are known as
A. Generation Alpha.
B. Generation X.
C. the echo boom.
D. Generation Z.
E. the Millennial generation.
84. The newest generation born in 2010 and later is referred to as
A. Millennials.
B. Generation X.
C. Generation Y.
D. Generation Z.
E. Generation Alpha.
85. A family structure with either two or more adult generations, or with both grandparents and grandchildren living
under one roof is known as
A. Multifamily living.
B. A multigenerational household.
C. A Great Recession family structure.
D. Multiage family living.
E. Demographic households.
True or False Questions
86. Demographics describe a population in terms of its size, distribution, and structure.
87. Education is probably the most widely applied single cue we use to initially evaluate and define individuals we
meet.
88. Over 50 percent of Americans have completed college.
89. Education provides a complete explanation for consumption patterns.
90. Income enables purchases but does not generally cause or explain them.
91. Adjusted gross income (AGI) is an estimate by the consumer of how much money he or she has available to
spend on nonessentials.
92. Gerontographics is one segmentation approach to the mature market that incorporates aging processes and life
events to the physical health and mental outlook of older consumers.
93. The Depression generation is composed of those individuals born before 1930.
94. Baby boomers are characterized by high education levels, high incomes, and dual-career households.
95. The baby boom generation is the first American generation to seriously confront the issue of “reduced
expectations.”
96. Generation X is facing the major challenge of being the caretaker of their parents.
97. The children of the original baby boomers, generation Y born between 1977 and 1994, are sometimes referred to
as the “baby bust” generation.
98. The newest generation born in 2010 and later is known as the Millennials.
99. Generation Z are more “risk takers” than Generation X or Generation Y.
100. Many upper-upper class consumers exhibit “conspicuous consumption.”
101. The Hollingshead Index of Social Position (ISP) is based on four socioeconomic factors: occupation, source of
income, house type, and dwelling area.
102. The Hollingshead Index of Social Position (ISP) takes into consideration the rapid expansion of the role of
women.
103. According to the “consumer insight” in your text, social class is the true “root” or underlying cause of the
observed pattern that lower SES consumers have poor quality diets.
104. Define the term “demographics,” explain why it is important to understand demographics in marketing, and
discuss the major demographic variables of interest to marketers.
105. Name and briefly describe the seven generations discussed in this chapter.
106. The Generation Y, or Millennial, market is the largest generational segment in America, and also quite diverse.
What are the six discrete segments of the Generation Y market, and provide insight as to opportunities for
businesses in targeting these segments.
Explanation:
• Hip-ennial: This segment feels that they can have a positive impact and make the world a better place. They are
very informed of what is going on globally and locally through regular consumption, but not creation, of news
107. Define the term “social class system” and list the social classes relevant in the United States.
108. Discuss the two basic approaches to measuring social status.
Chapter 04 Test Bank Summary
Category
# of Questions
AACSB: Analytical Thinking
108
Accessibility: Keyboard Navigation
108
Blooms: Remember
64
Blooms: Understand
43
Difficulty: Easy
17
Difficulty: Hard
19
Difficulty: Moderate
72
Gradable: automatic
107
Gradable: manual
5
Learning Objective: 04–01 Understand the critical role that demographics play
in influencing consumer behavior.
34
Learning Objective: 04–02 Define the concept of generations and discuss the
generations that exist in America.
52
Learning Objective: 04–03 Explain the concept of social stratification and the role
that socioeconomic factors play.
3
Learning Objective: 04–04 Identify and discuss the major social classes in America.
12
Learning Objective: 04–05 Understand how social class is measured.
6
Learning Objective: 04–06 Discussing the role of social class in developing
marketing strategies.
1
Topic: Age
7
Topic: Baby Boom Generation
9
Topic: Demographics
5
Topic: Depression Generation
3
Topic: Education
6
Topic: Generation Alpha
2
Topic: Generation X
6
Topic: Generation Y
8
Topic: Generation Z
6
Topic: Income
7
Topic: Lower Americans
3
Topic: Middle Americans
3
Topic: Occupation
4
Topic: Population Size and Distribution
3
Topic: Pre-Depression Generation
14
Topic: Social Stratification
3
Topic: Social Stratification and Marketing Strategy
1
Topic: Social Structure in the United States
2
Topic: The Changing American Society: Demographics and Social Stratification
2
Topic: The Measurement of Social Class
6
Topic: Understanding American Generations
4
Topic: Upper Americans
4