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62) Over the past two decades, the U.S. population has shifted toward the ________ states.
A) Northern
B) Northeast
C) Sunbelt
D) Midwest
E) Corn belt
63) Which of the following has lost population in the past two decades?
A) California
B) Florida
C) the Western states
D) the Northeast states
E) the Southern states
64) In the 1950s, Americans made a massive exit ________.
A) from the South to the Northeast
B) from the West to the Midwest
C) to foreign countries
D) from the cities to the suburbs
E) from the coastal towns to the cities
65) An increasing number of American workers currently work from their homes or remote
offices and conduct their business by phone or the Internet. This trend has created a ________.
A) booming real estate market in the big cities
B) booming SOHO market
C) decline in the demand for convenience foods
D) decline in the demand for financial services
E) steady increase in global enterprises
66) Which of the following demographic trends is the most likely cause for a rapid increase in
telecommuting?
A) the migration toward micropolitan and suburban areas
B) the migration from rural to metropolitan areas
C) the increasing number of traditional households
D) the growing percentage of married couples who do not have children
E) the declining number of manufacturing workers in today's workforce
67) Micropolitan areas are ________.
A) likely to have a higher crime rate than metropolitan areas
B) less likely to attract telecommuters
C) likely to offer the same advantages as metropolitan areas
D) less likely to offer market expansion opportunities
E) generally unattractive to niche marketers
68) In the United States, job growth currently is the weakest for ________.
A) white collar workers
B) manufacturing workers
C) salespeople
D) telecommuters
E) professional workers
69) Currently, in the United States, job growth is the strongest for ________.
A) blue collar workers
B) manufacturing workers
C) professional workers
D) construction workers
E) sanitation workers
70) Which of the following is an accurate statement about the diversity of the American
population?
A) African Americans represent the largest non-white segment of the population.
B) More than 20 percent of the people living in the United States were born in another country.
C) By 2050, the Asian population is estimated to remain at 4.7 percent.
D) By 2060, Hispanics are estimated to be 28 percent of the population.
E) The United States has become more of a "melting pot" than a "salad bowl."
71) By 2060, ________ will be an estimated 14 percent of the U.S. population.
A) African Americans
B) Asians
C) Hispanics
D) Native Americans
E) Native Hawaiians
72) Which of the following situations is expected to enhance the use of targeted advertising
messages by marketers?
A) increase in derived demand in the market
B) increase in ethnic populations
C) rising global inflation rates
D) inadequate quality control
E) low advertising budgets
73) With an expected increase in ethnic diversity within the American population, marketers
are most likely to place a greater emphasis on ________.
A) geographic segmentation
B) targeted advertising messages
C) mass marketing
D) "do well by doing good" missions
E) corporate giving
74) Soon-Yi Park'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 Soon-Yi 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, the cable television network aimed at gays and lesbians and their
friends and family
75) Which of the following is true with regard to the diversity segment of U.S. adults with
disabilities?
A) Most individuals with disabilities are active consumers.
B) The market represented by U.S. adults with disabilities is smaller than that represented by
African Americans or Hispanics.
C) The diversity segment, U.S. adults with disabilities, is a rather unattractive segment for the
tourism industry.
D) The annual spending power of U.S. adults with disabilities is less than $100 billion.
E) Most companies are reluctant to reach out to consumers with disabilities.
76) The economic environment consists of economic factors that affect ________.
A) cultural patterns of communities
B) entrepreneurial orientation of a population
C) the quality of technological innovation
D) consumer purchasing power
E) the natural environment
77) Consumers' spending patterns since the Great Recession include ________.
A) spending freely, without caution
B) buying less and looking for greater value in what they buy
C) amassing record levels of debt
D) experiencing rapid increases in housing values
E) participating in a booming stock market
78) Which of the following is an accurate statement about the income distribution of the
American population?
A) The top 20 percent of earners achieves 68 percent of the country's adjusted gross income.
B) The bottom 40 percent of earners captures just 11 percent of total income.
C) The top 5 percent of American earners captures 18 percent of all income.
D) The distribution of income allows most companies to target earners of all income levels.
E) Changes in income and interest rates minimally impact spending patterns.
79) A value marketer is most likely to ________.
A) offer consumers superior quality of goods and services at a very high price
B) offer consumers only those products that are associated with status and prestige
C) offer consumers low quality goods and services at very low prices
D) offer consumers a balanced combination of product quality at a fair price
E) deny discounts to consumers to increase profits
80) Which of the following statements about income distribution in the United States is NOT
true?
A) Over the past several decades, the rich have grown richer.
B) Over the past several decades, the middle class has grown faster than other classes.
C) Over the past several decades, the poor have remained poor.
D) The top 20 percent of earners capture over 50 percent of all income.
E) The top five percent of American earners get nearly 22 percent of the country's adjusted
gross income.
Refer to the scenario below to answer the following question(s).
Casey Brickly opened The Landing, a convenience store 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 fishing needs, such as rods and reels,
bait, snacks, and soft drinks at The Landing. Even during the winter months, snowmobilers and
ice fishermen were lured to The Landing for snacks 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 full-fledged residential area. Many of the houses, which were
built as cottages in the 1950s and 1960s, were remodeled into residential homes. By the end of
the 1970s, the days of small motorboats and 10 mile-per-hour speed limits were gone; skiing
and fast speedboats became 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 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."
81) Which of the following is the macroenvironmental force that has had the greatest effect on
The Landing?
A) the demographic environment
B) the technological environment
C) marketing intermediaries
D) the political environment
E) citizen-action publics
82) Which of the following generational groups is most likely to represent the present owners
of cottages surrounding Witmer Lake?
A) Baby Boomers
B) Echo Boomers
C) Gen Xers
D) Lost Generation
E) Millennials
83) The demographic environment is of major interest to marketers because it involves people,
and people make up markets.
84) The single most important demographic trend in the United States that marketers should
understand is the changing family structure of the population.
85) As baby boomers reach their peak earning and spending years, they become lucrative
markets for financial services, travel, and entertainment.
86) Millennials comprise the most financially affluent group in America today.
87) The Gen Xers are increasingly displacing the lifestyles, culture, and values of the baby
boomers.
88) Millennials represent a larger demographic segment than the baby boomers or Gen Xers.
89) Marketers must increasingly consider the special needs of traditional households because
this segment of the population is growing more rapidly than nontraditional households.
90) The American workforce today is less white-collar than in the late twentieth century.
91) Companies in several industries have recognized the buying power of the LGBT segment
of the U.S. population and have begun explicitly targeting these consumers with gay-specific
ads and marketing efforts.
92) Prior to the Great Recession of 2008/2009, American consumer spending was careful and
restrained.
93) What are two potential drawbacks of creating separate products and marketing programs for
each generation?
94) Briefly explain why, until 2008, Americans amassed record amounts of debt and why the
free-spending trend has ended.
95) Why do marketers find baby boomers attractive?
96) How can marketers reach the Millennials effectively?
97) How can marketers reach the Generation Zers effectively?
98) What structure can an American family have now, as the traditional family has changed?
99) Why do population shifts interest marketers?
100) In terms of ethnic and racial makeup, why is the United States today more accurately
characterized as a "salad bowl" than a "melting pot"?
101) What is demography? Why is the demographic environment of major interest to
marketers? Discuss the changing age structure of the U.S. population.
102) Explain the impact of the baby boomers, Generation Xers, Millennials, and Generation
Zers on today's marketing strategies.
103) The physical environment affecting marketing activities is referred to as the ________
environment.
A) economic
B) natural
C) cultural
D) political
E) social
104) The environmental sustainability movement encourages companies to ________.
A) actively resist social change
B) operate freely in the black market
C) go beyond government regulations
D) institute deregulation
E) curb organizational anarchy
105) As a consequence of the concern for the natural environment, many companies are
developing strategies and practices that support ________.
A) government intervention
B) environmental sustainability
C) deregulation
D) mass marketing
E) rapid exploitation of natural resources
106) A firm dumping chemical wastes in the local lake is ________.
A) actively resisting social change
B) contributing to organizational anarchy
C) engaging in a "do well by doing good" mission
D) adopting a proactive stance toward the marketing environment
E) contributing to increased pollution
107) New technologies most likely lead to ________.
A) economic imbalance in society
B) reduced exports
C) trade deficits
D) an increased demand for unskilled labor
E) new markets and opportunities
108) 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 online consumer behavior
109) Many companies use RFID product labels on their goods, which exemplifies the
________ environment in business.
A) natural
B) political
C) economic
D) demographic
E) technological
110) Which of the following is most likely 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) Annual spending on research and development has decreased.
C) Research costs for companies have risen.
D) Product innovation has significantly declined.
E) Marketers have grown increasingly apathetic toward meeting safety standards.
111) Trends in the natural environment include all of the following EXCEPT ________.
A) increased government intervention
B) the development of an environmental sustainability movement
C) increased pollution
D) decreased costs of product development
E) shortages of raw materials
112) Which of the following is a true statement about the benefits of RFID technology?
A) It allows firms to track products and customers at various points in the distribution channel.
B) The chips are used to track shipments but not individual items.
C) The chips do not risk invading people's privacy.
D) Sharing of data decreases the buying experience for consumers.
E) The technology will be available for the foreseeable future, allowing companies to fully
invest in its capabilities.
