Chapter 4—The Marketing Environment

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CHAPTER 4—THE MARKETING ENVIRONMENT
TRUE/FALSE
1. MARKETERS CAN CONTROL THE EXTERNAL ENVIRONMENT IN WHICH THEIR ORGANIZATIONS
OPERATE.
ANS: F
ALTHOUGH MARKETERS CAN CONTROL THE MARKETING MIX AND PERHAPS INFLUENCE THE
EXTERNAL ENVIRONMENT, THEY CANNOT CONTROL THE EXTERNAL ENVIRONMENT IN WHICH
THEIR ORGANIZATIONS OPERATE.
PTS: 1
REF: 87
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
2. CHAMPION LYTE IS A SUGAR-FREE SPORTS DRINK DESIGNED TO REPLENISH ELECTROLYTES LOST
DURING ACTIVITY OR ILLNESS. SINCE THE PRODUCT WAS DESIGNED PRIMARILY FOR DIABETICS,
HEALTH CARE PROFESSIONALS WHO TREAT DIABETICS ARE ITS PRIMARY TARGET MARKET.
ANS: F
THE TARGET MARKET CONSISTS OF THE DIABETICS FOR WHOM THE PRODUCT WAS DESIGNED.
PTS: 1
REF: 87
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
3. OFTEN, 20 PERCENT OF A FIRM’S CUSTOMERS PRODUCE 80 PERCENT OF THE FIRM’S REVENUE.
ANS: T
PTS: 1
TOP: AACSB REFLECTIVE THINKING
MSC: BLOOMS LEVEL I KNOWLEDGE
REF: 89
OBJ: 04-1
KEY: CB&E MODEL CUSTOMER
4. COMPANIES USE ENVIRONMENTAL MANAGEMENT WHEN THEY IMPLEMENT STRATEGIES THAT
ATTEMPT TO SHAPE THE EXTERNAL ENVIRONMENT WITHIN WHICH THEY OPERATE.
ANS: T
PTS: 1
TOP: AACSB REFLECTIVE THINKING
MSC: BLOOMS LEVEL I KNOWLEDGE
REF: 89
OBJ: 04-1
KEY: CB&E MODEL STRATEGY
5. SOCIAL CHANGE IS PERHAPS THE MOST DIFFICULT EXTERNAL VARIABLE FOR MARKETING
MANAGERS TO FORECAST, INFLUENCE, OR INTEGRATE INTO MARKETING PLANS.
ANS: T
PTS: 1
REF: 90
OBJ: 04-2
TOP: AACSB REFLECTIVE THINKING
KEY: CB&E MODEL STRATEGY
MSC: BLOOMS LEVEL VI EVALUATION
6. THE NATURAL MARKETING INSTITUTE PREDICTS THAT AMERICAN CONSUMERS WILL BECOME
LESS ENVIRONMENTALLY ORIENTED OVER THE NEXT DECADE AS ECONOMIC CONCERNS BECOME
DOMINANT IN MOST PEOPLE’S LIVES.
ANS: F
THE OPPOSITE IS PREDICTED.
PTS: 1
REF: 91
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
7. THE PRACTICE OF CHOOSING GOODS AND SERVICES THAT MEET ONE’S DIVERSE NEEDS AND
INTERESTS RATHER THAN CONFORMING TO A SINGLE, TRADITIONAL LIFESTYLE IS KNOWN AS
AGGREGATE LIFESTYLES.
ANS: F
THE TERM IS COMPONENT LIFESTYLES.
PTS: 1
REF: 93
KEY: CB&E MODEL CUSTOMER
OBJ: 04-2
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL I KNOWLEDGE
8. THE POPULATION SHIFT IN THE UNITED STATES FROM THE NORTHEAST AND MIDWEST TOWARD
THE SOUTH AND SOUTHWEST HAS HAD A GREATER EFFECT ON MARKETING THAN HAS ANY OTHER
SOCIAL CHANGE.
ANS: F
THE PHENOMENON OF WORKING WOMEN HAS PROBABLY HAD A GREATER EFFECT ON MARKETING
THAN HAS ANY OTHER SOCIAL CHANGE.
PTS: 1
REF: 93
KEY: CB&E MODEL CUSTOMER
OBJ: 04-2
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL VI EVALUATION
9. DEMOGRAPHY IS THE STUDY OF PEOPLE'S VITAL STATISTICS SUCH AS THEIR AGES AND
LOCATIONS.
ANS: T
PTS: 1
TOP: AACSB REFLECTIVE THINKING
MSC: BLOOMS LEVEL I KNOWLEDGE
REF: 95
OBJ: 04-3
KEY: CB&E MODEL CUSTOMER
10. THE CLOTHING STYLE WORN BY TWEENS REFLECTS THAT OF THEIR PARENTS.
ANS: F
TWEENS WANT THEIR OWN LOOK.
PTS: 1
REF: 96
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
11. THE AVERAGE TEEN EARNS ABOUT $45.00 PER WEEK.
ANS: T
PTS: 1
REF: 96
OBJ: 04-3
TOP: AACSB REFLECTIVE THINKING
KEY: CB&E MODEL CUSTOMER
MSC: BLOOMS LEVEL II COMPREHENSION
12. GENERATION Y IS THE MOST ETHNICALLY DIVERSE GENERATION THE NATION HAS EVER SEEN.
ANS: T
PTS: 1
REF: 98
OBJ: 04-3
TOP: AACSB DIVERSITY
KEY: CB&E MODEL CUSTOMER
MSC: BLOOMS LEVEL II COMPREHENSION
13. GENERATION Y IS THE FIRST GENERATION OF LATCHKEY CHILDREN—PRODUCTS OF DUALCAREER AND/OR DIVORCED HOUSEHOLDS.
ANS: F
GENERATION X WAS THE FIRST GENERATION OF LATCHKEY CHILDREN.
PTS: 1
REF: 100
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
14. BABY BOOMERS STATE THAT “OLD AGE” OFFICIALL BEGINS AT 65.
ANS: F
BABY BOOMERS STATE THAT “OLD AGE” OFFICIALLY BEGINS AT 80; THEY TEND TO FEEL MUCH
YOUNGER THAN THEIR CHRONOLOGICAL AGE DUE TO THEIR “MENTAL ATTITUDE.”
PTS: 1
REF: 102
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
15. ALMOST HALF OF ALL U.S. RESIDENTS IS A MINORITY.
ANS: F
ABOUT ONE IN THREE U.S. RESIDENTS IS A MINORITY.
PTS: 1
REF: 103
KEY: CB&E MODEL CUSTOMER
OBJ: 04-4
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL I KNOWLEDGE
16. THE HISPANIC POPULATION IS DRIVING MINORITY GROWTH IN THE UNITED STATES.
ANS: T
PTS: 1
REF: 103-104
OBJ: 04-4
TOP: AACSB DIVERSITY
KEY: CB&E MODEL CUSTOMER
MSC: BLOOMS LEVEL II COMPREHENSION
17. ON AVERAGE, AFRICAN AMERICANS ARE NEARLY EIGHT YEARS OLDER THAN ALL OTHER
AMERICAN CONSUMERS.
ANS: F
AFRICAN AMERICANS ARE NEARLY SIX YEARS YOUNGER THAN ALL CONSUMERS ; 47 PERCENT
ARE BETWEEN 18 AND 49 YEARS OLD, WHICH IS CONSIDERED THE TOP-SPENDING AGE
DEMOGRAPHIC BY MARKETERS.
PTS: 1
REF: 105
KEY: CB&E MODEL CUSTOMER
OBJ: 04-4
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL II COMPREHENSION
18. RISING INCOMES MEAN A HIGHER STANDARD OF LIVING.
ANS: F
NOT NECESSARILY. INCREASED STANDARDS OF LIVING ARE A FUNCTION OF PURCHASING POWER,
WHICH IS MEASURED BY COMPARING INCOME TO THE RELATIVE COST OF A SET STANDARD OF
GOODS AND SERVICES IN DIFFERENT GEOGRAPHIC AREAS.
PTS: 1
REF: 110
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-5
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
19. INFLATION IS A MEASURE OF THE DECREASE IN THE VALUE OF MONEY, EXPRESSED AS THE
PERCENTAGE REDUCTION IN VALUE SINCE THE PREVIOUS YEAR.
ANS: T
PTS: 1
TOP: AACSB REFLECTIVE THINKING
MSC: BLOOMS LEVEL I KNOWLEDGE
REF: 110
OBJ: 04-5
KEY: CB&E MODEL PRICING
20. AN ECONOMIC RECESSION INCREASES DEMAND FOR PRODUCTS AND SERVICES.
ANS: F
A RECESSION IS A PERIOD OF ECONOMIC ACTIVITY CHARACTERIZED BY NEGATIVE GROWTH,
WHICH REDUCES DEMAND FOR GOODS AND SERVICES.
PTS: 1
REF: 111
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-5
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
21. BASIC RESEARCH ATTEMPTS TO DEVELOP NEW OR IMPROVED PRODUCTS.
ANS: F
THIS IS APPLIED RESEARCH. BASIC RESEARCH ATTEMPTS TO EXPAND THE FRONTIERS OF
KNOWLEDGE BUT IS NOT AIMED AT A SPECIFIC, PRAGMATIC PROBLEM.
PTS: 1
REF: 113
THINKING
KEY: CB&E MODEL RESEARCH
OBJ: 04-6
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
22. THE MOST INNOVATIVE FIRMS HAVE AN AVERAGE PROFIT MARGIN GROWTH OF 3 PERCENT
HIGHER THAN THE TYPICAL FIRM.
ANS: T
PTS: 1
TOP: AACSB REFLECTIVE THINKING
MSC: BLOOMS LEVEL I KNOWLEDGE
REF: 115
OBJ: 04-6
KEY: CB&E MODEL RESEARCH
23. CHAMPION LYTE IS A SUGAR-FREE SPORTS DRINK. IN DEVELOPING THE PRODUCT, ITS
MANUFACTURER THOROUGHLY STUDIED THE LEGAL RESTRICTIONS ON THE DRINK'S
INGREDIENTS, PACKAGING, MANUFACTURING, AND LABELING AND HAS ABIDED BY ALL SUCH
RESTRICTIONS. IN THIS WAY, THE MANUFACTURER OF CHAMPION LYTE DRINKS CONDUCTED ITS
EXAMINATION OF ALL POLITICAL AND LEGAL FACTORS THAT MIGHT AFFECT THE PRODUCT'S
MARKETING.
ANS: F
LEGAL RESTRICTIONS GOVERN DECISIONS IN ALL AREAS OF THE MARKETING MIX, NOT JUST IN
THE AREAS THE MANUFACTURER CHECKED.
PTS: 1
REF: 115
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
24. THE SHERMAN ACT OF 1890 ESTABLISHES PROTECTION FOR TRADEMARKS.
ANS: F
THE LANHAM ACT OF 1946 ESTABLISHES PROTECTION OF TRADEMARKS.
PTS: 1
REF: 116
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
25. MARKETERS NEED A THOROUGH UNDERSTANDING OF THE LAWS ESTABLISHED BY THE FEDERAL
GOVERNMENT, STATE GOVERNMENTS, AND REGULATORY AGENCIES.
ANS: T
PTS: 1
REF: 116
OBJ: 04-7
TOP: AACSB REFLECTIVE THINKING
KEY: CB&E MODEL STRATEGY
MSC: BLOOMS LEVEL II COMPREHENSION
26. AFTER HAL LI PURCHASED AND INSTALLED A WOODBURNING STOVE TO HEAT HIS FAMILY HOME,
THE STOVE CAUGHT FIRE AND DAMAGED MUCH OF THE HOUSE. HE BELIEVES THE STOVE HAD
INADEQUATE INSULATION. LI SHOULD VOICE HIS CONCERNS TO THE FEDERAL TRADE
COMMISSION (FTC).
ANS: F
THE CONSUMER PRODUCT SAFETY COMMISSION IS DESIGNED TO PROTECT THE HEALTH AND
SAFETY OF CONSUMERS.
PTS: 1
REF: 118
THINKING
KEY: CB&E MODEL PRODUCT
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
27. THE GRAMM-LEACH-BLILEY ACT REQUIRES WEB SITE OPERATORS TO POST A PRIVACY POLICY
ON THE HOME PAGE AND A LINK TO THE POLICY ON EVERY PAGE WHERE PERSONAL INFORMATION
IS COLLECTED.
ANS: F
THE CHILDREN’S ONLINE PRIVACY PROTECTION ACT RULE STIPULATES THESE POLICIES.
PTS: 1
REF: 120
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
28. THE COMPETITIVE ENVIRONMENT OF A BUSINESS ENCOMPASSES THE NUMBER OF COMPETITORS
THE FIRM MUST FACE, THE RELATIVE SIZE OF THESE COMPETITORS, REGULATORY AGENCIES, AND
THE DEGREE OF INTERDEPENDENCE WITHIN THE INDUSTRY.
ANS: F
REGULATORY AGENCIES ARE POLITICAL AND LEGAL FACTORS.
PTS: 1
REF: 121
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-8
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
MULTIPLE CHOICE
1. A(N) _____ IS A DEFINED GROUP THAT MANAGERS FEEL IS MOST LIKELY TO BUY A FIRM'S
PRODUCT.
A.
TARGET MARKET
B.
BUYING CENTER
C.
AGGREGATED UNIT
D.
CONSUMER CLUSTER
E.
DEMOGRAPHIC SAMPLE
ANS: A
PTS: 1
TOP: AACSB REFLECTIVE THINKING
MSC: BLOOMS LEVEL I KNOWLEDGE
REF: 87
OBJ: 04-1
KEY: CB&E MODEL CUSTOMER
2. WHICH OF THE FOLLOWING STATEMENTS BEST DESCRIBES THE TYPICAL TARGET MARKET?
A.
A TARGET MARKET WILL REMAIN STABLE
OVER TIME, INCLUDING THE SAME GROUP OF
CONSUMERS.
B.
TARGET MARKETS CHANGE OVER TIME AS
CONSUMERS DROP IN OR OUT OF THE MARKET,
AND AS TASTES CHANGE.
C.
TARGET MARKETS ARE NOT STRONGLY
AFFECTED BY CHANGES IN THE EXTERNAL
ENVIRONMENT.
D.
TARGET MARKETS ONLY CHANGE WHEN THE
FEATURES AND BENEFITS OF THE PRODUCT
OFFERING CHANGE.
E.
TARGET MARKETS CANNOT BE SPECIFICALLY
DEFINED ACCORDING TO AGE, INCOME, OR
LOCATION BECAUSE THESE FACTORS ARE
CONTINUALLY CHANGING
ANS: B
TARGET MARKETS ARE DEFINED AND DESCRIBED, BUT THEY ARE ALWAYS CHANGING IN
RESPONSE TO THE ENVIRONMENT.
PTS: 1
REF: 87
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL VI EVALUATION
3. COLORIFIC RECENTLY BEGAN COMPETING WITH CRAYOLA COLORING PRODUCTS. AT THE
BEGINNING OF THE SCHOOL YEAR, THE _____ FOR COLORIFIC PRODUCTS CONSISTS OF BACK-TOSCHOOL SHOPPERS.
A.
TARGET MARKET
B.
BUYING CENTER
C.
MASS MARKET
D.
CONSUMER SAMPLE
E.
AGGREGATED DEMOGRAPHY
ANS: A
A TARGET MARKET IS A DEFINED GROUP THAT MANAGERS FEEL IS MOST LIKELY TO BUY ITS
PRODUCTS.
PTS: 1
REF: 87
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
4. THE PUBLISHER OF EBONY MAGAZINE HAS FORGED AN ALLIANCE WITH DAN RIVER, INC. TO
CREATE LUXURY BED AND BATH PRODUCTS FOR THE NEWLY DEVELOPED EBONY HOME BRAND.
EBONY HOME WILL USE THE PUBLISHER’S LONG HISTORY AND EXPERTISE TO MARKET TO THE
AFRICAN AMERICAN MARKET. THE AFRICAN AMERICAN MARKET IS THE _____ FOR THE EBONY
HOME BRAND.
A.
TARGET MARKET
B.
BUYING CENTER
C.
AGGREGATED UNIT
D.
CONSUMER CLUSTER
E.
DEMOGRAPHIC SAMPLE
ANS: A
A TARGET MARKET IS A DEFINED GROUP THAT MANAGERS FEEL IS MOST LIKELY TO BUY A FIRM'S
PRODUCT.
PTS: 1
REF: 87
THINKING
KEY: CB&E MODEL CUSTOMER
5. THE EXTERNAL ENVIRONMENT _____.
A.
OBJ: 04-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
CAN BE CONTROLLED IN MUCH THE SAME
MANNER AS THE INTERNAL MARKETING MIX
B.
CANNOT BE INFLUENCED BY MARKETING
MANAGERS
C.
DOES NOT CHANGE OVER TIME
D.
DOES NOT HAVE AN IMPACT ON FORTUNE 500
COMPANIES
E.
MUST BE CONTINUALLY MONITORED BY
MARKETING MANAGERS
ANS: E
THE GOAL IN GATHERING THE ENVIRONMENTAL DATA IS TO IDENTIFY FUTURE MARKET
OPPORTUNITIES AND THREATS.
PTS: 1
REF: 88
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL IV ANALYSIS
6. THE GOAL OF ENVIRONMENTAL SCANNING IS TO _____.
A.
IDENTIFY OPPORTUNITIES AND THREATS IN
THE MARKETPLACE
B.
ELIMINATE ALL COMPETITION IN THE
MARKETPLACE
C.
CLOSE ALL ENVIRONMENTAL LOOPHOLES
D.
CONTROL THE EXTERNAL ENVIRONMENT
E.
INCREASE PRODUCT MYOPIA
ANS: A
THE EXTERNAL ENVIRONMENT CAN PROVIDE OPPORTUNITIES TO SERVE NEW AND CHANGING
NEEDS, AS WELL AS WARNINGS ABOUT CHANGES THAT COULD THREATEN THE CURRENT POSITION
OF THE FIRM. ENVIRONMENTAL SCANNING CAN IDENTIFY SUCH OPPORTUNITIES AND THREATS.
PTS: 1
REF: 88
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL IV ANALYSIS
7. ALL OF THE FOLLOWING ARE FACTORS IN THE EXTERNAL ENVIRONMENT AFFECTING MARKETING
EXCEPT:
A.
MARKETING MIX
B.
ECONOMIC CONDITIONS
C.
TECHNOLOGY
D.
POLITICAL AND LEGAL FACTORS
E.
COMPETITION
ANS: A
THE MARKETING MIX IS CREATED BY THE COMPANY.
PTS: 1
REF: 89
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL IV ANALYSIS
8. WHICH OF THE FOLLOWING IS A KEY AREA THAT FIRMS SHOULD MONITOR IN THE EXTERNAL
ENVIRONMENT?
A.
UNDERSTANDING CURRENT CUSTOMERS
B.
IDENTIFYING THE MOST VALUABLE
CUSTOMERS AND THEIR NEEDS
C.
UNDERSTANDING WHAT DRIVES CONSUMER
DECISIONS
D.
E.
UNDERSTANDING THE COMPETITION
ALL OF THE ABOVE
ANS: E
ALL OF THE LISTED FACTORS MUST BE MONITORED.
PTS: 1
REF: 88-89
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
9. MARKETING MANAGERS CANNOT CONTROL _____, BUT THEY CAN SOMETIMES INFLUENCE IT.
A.
WHERE ADVERTISING IS PLACED
B.
THE EXTERNAL ENVIRONMENT
C.
THE SALES FORCE
D.
THE DISTRIBUTION STRATEGY
E.
PRODUCT PRICING
ANS: B
THE EXTERNAL ENVIRONMENT IS BASICALLY UNCONTROLLABLE, BUT THE OTHER FOUR
ANSWERS ARE PART OF THE MARKETING MIX.
PTS: 1
REF: 89
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
10. WHEN A COMPANY ENGAGES IN _____, IT IS IMPLEMENTING STRATEGIES THAT ATTEMPT TO
SHAPE THE EXTERNAL ENVIRONMENT IN WHICH IT OPERATES.
A.
SYNERGISTIC CONTROL
B.
ENVIRONMENTAL MANAGEMENT
C.
ENVIRONMENTAL CONTROL
D.
MARKET CONTROL
E.
REACTIVE MANAGEMENT
ANS: B
ENVIRONMENTAL MANAGEMENT MEANS ATTEMPTING TO INFLUENCE EXTERNAL
ENVIRONMENTAL FACTORS.
PTS: 1
REF: 89
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
11. THE MICHIGAN STATE LEGISLATURE TRIED TO PASS A BILL REQUIRING CONCERT PROMOTERS
AND VENUE OPERATORS TO PRINT PARENTAL WARNINGS ON TICKETS AND ADVERTISEMENTS FOR
CONCERTS AND SHOWS BY PERFORMERS WHOSE RECORDINGS HAD CONTENT ADVISORY LABELS.
PROMOTERS AND VENUE OPERATORS PREVENTED THE PASSAGE OF THIS BILL, ARGUING THAT IT
WOULD REQUIRE THEM TO MAKE VALUE JUDGMENTS FOR WHICH THEY WERE ILL-EQUIPPED. THE
PROMOTERS AND OPERATORS ENGAGED IN:
A.
INTERNAL MARKETING
B.
ILLEGAL PRACTICES
C.
ENVIRONMENTAL MANAGEMENT
D.
REENGINEERING
E.
CORPORATE ESPIONAGE
ANS: C
ENVIRONMENTAL MANAGEMENT MEANS ATTEMPTING TO INFLUENCE EXTERNAL
ENVIRONMENTAL FACTORS.
PTS: 1
REF: 89
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
12. _____ FACTORS ARE ENVIRONMENTAL FACTORS THAT INCLUDE OUR ATTITUDES, VALUES, AND
LIFESTYLES.
A.
SOCIAL
B.
ECONOMIC
C.
POLITICAL
D.
COMPETITIVE
E.
DEMOGRAPHIC
ANS: A
SOCIAL FACTORS, SUCH AS ATTITUDES, VALUES, AND LIFESTYLES, INFLUENCE CONSUMERS’
BEHAVIOR.
PTS: 1
REF: 90
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
13. WHICH OF THE FOLLOWING IS THE MOST DIFFICULT FOR MARKETING MANAGERS TO FORECAST,
INFLUENCE, OR INTEGRATE INTO MARKETING PLANS?
A.
TECHNOLOGY
B.
SOCIAL FACTORS
C.
DEMOGRAPHY
D.
COMPETITION
E.
ECONOMIC CONDITIONS
ANS: B
SOCIAL FACTORS AND CHANGES ARE DIFFICULT TO FORESEE, BECAUSE THEY ARE USUALLY SLOW
AND/OR SMALL CHANGES.
PTS: 1
REF: 90
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL VI EVALUATION
14. MANY PEOPLE IN THE UNITED STATES CHOOSE TO DRINK LIGHT BEER BECAUSE THEY VALUE
THIN AND FIT BODIES. IN EUROPE, LIGHT BEERS HAVE HAD LITTLE SUCCESS BECAUSE FLAVOR IS
VALUED MORE HIGHLY. FOR INTERNATIONAL BEER MANUFACTURERS, THIS DIFFERENCE
ILLUSTRATES HOW _____ INFLUENCE(S) MARKETING.
A.
DEMOGRAPHY
B.
COMPETITION
C.
SOCIAL FACTORS
D.
ECONOMIC CONDITIONS
E.
TECHNOLOGY
ANS: C
VALUES ARE AN EXAMPLE OF SOCIAL FACTORS AND INFLUENCE THE PRODUCTS THAT PEOPLE
BUY.
PTS: 1
REF: 90
KEY: CB&E MODEL CUSTOMER
OBJ: 04-2
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL III APPLICATION
15. IN MANY AFRICAN NATIONS, PEOPLE LIVE ON LESS THAN $5.00 PER DAY. TO GROW HERE,
PROCTER & GAMBLE (P&G) MUST PERSUADE THESE PEOPLE TO PURCHASE ITEMS THEY HAVE
LIVED WITHOUT FOREVER. AS A RESULT, P&G SELLS ONE-OUNCE PACKAGES OF ARIEL LAUNDRY
SOAP FOR AS LITTLE AS 10 CENTS IN THIS MARKET. P&G RESPONDED TO _____ FACTORS WHEN IT
DEVELOPED THESE SMALL PACKAGES.
A.
DEMOGRAPHIC
B.
COMPETITIVE
C.
TECHNOLOGICAL
D.
SOCIAL
E.
COMPONENT LIFESTYLE
ANS: D
SOCIAL FACTORS INFLUENCE THE PRODUCTS PEOPLE BUY.
PTS: 1
REF: 90
KEY: CB&E MODEL CUSTOMER
OBJ: 04-2
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL III APPLICATION
16. SHARK FIN SOUP IS A FAVORITE THAI FOOD. WHEN A SAN FRANCISCO-BASED ORGANIZATION
CLAIMED THAT THE LEADING PRODUCER’S SOUP CONTAINED MERCURY POISON, ITS SALES
PLUMMETED. THE POPULARITY OF THIS SOUP IN THAILAND REPRESENTS A(N) _____ FACTOR
WHILE THAILAND’S LAX ENFORCEMENT OF ENVIRONMENTAL PROTECTION AND CONSUMER
PROTECTION REGULATIONS ARE A(N) _____ FACTOR.
A.
ECONOMIC; TECHNOLOGICAL
B.
SOCIAL; TECHNOLOGICAL
C.
SOCIAL; POLITICAL AND LEGAL
D.
COMPETITIVE; ECONOMIC
E.
SOCIAL; TECHNOLOGICAL
ANS: C
FOOD PREFERENCES ARE A CULTURAL ISSUE, AND THE LAX ENFORCEMENT OF ENVIRONMENTAL
PROTECTION LAWS IS A LEGAL/POLITICAL FACTOR.
PTS: 1
REF: 90 | 115
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-2 | 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
17. CONSUMERS’ CONCERN FOR HEALTH ISSUES AFFECTS THE WAY FOOD IS MARKETED. FOR
EXAMPLE, MARKETERS MUST NOW LIST THE NUMBER OF GRAMS OF TRANSFAT ON A PRODUCT’S
NUTRITION LABEL BECAUSE IT HAS RECENTLY COME TO LIGHT THAT THIS TYPE OF FAT IS
HARMFUL. CONSUMERS’ CONCERN FOR HEALTH ISSUES IS A(N) _____ FACTOR.
A.
ECONOMIC
B.
POLITICAL AND LEGAL
C.
TECHNOLOGICAL
D.
DEMOGRAPHIC
E.
SOCIAL
ANS: E
SOCIAL FACTORS INCLUDE OUR ATTITUDES, VALUES, AND LIFESTYLES.
PTS: 1
REF: 90
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
18. QUAKER OATS AND OTHER CEREAL MANUFACTURERS HAVE DEVELOPED WHAT THEY CALL
"BREAKFAST-WITH-ONE-HAND" PRODUCTS—NO-MESS BREAKFAST BARS AND DRINKS THAT CAN
BE CONSUMED WHILE COMMUTING. THE POPULARITY OF ON-THE-GO FOOD IS LARGELY THE
RESULT OF CHANGES IN _____ FACTORS.
A.
NATURAL ENVIRONMENTAL
B.
DEMOGRAPHIC
C.
TECHNOLOGICAL
D.
SOCIAL
E.
POLITICAL
ANS: D
SOCIAL FACTORS INCLUDE OUR ATTITUDES, VALUES, AND LIFESTYLES.
PTS: 1
REF: 90
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
19. WHAT DO SELF-SUFFICIENCY, UPWARD MOBILITY, WORK ETHIC, AND CONFORMITY HAVE IN
COMMON?
A.
THESE ARE NO LONGER VALUED ATTITUDES
B.
THEY ARE ATTITUDES THAT CAN EASILY BE
CHANGED
C.
D.
E.
THESE ARE THREE PERCEPTIONS THAT
AMERICANS HAVE OF THE ASIAN LIFESTYLE
THESE ARE THREE OF THE CORE VALUES THAT
INFLUENCE LIFESTYLES IN THE UNITED
STATES
THEY ARE THE DETERMINANTS OF A
COMPONENT LIFESTYLE
ANS: D
THESE ARE THE FOUR BASIC VALUES THAT HAVE STRONGLY INFLUENCED AMERICAN ATTITUDES
AND LIFESTYLES.
PTS: 1
REF: 90
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL IV ANALYSIS
20. ACCORDING TO THE NATURAL MARKETING INSTITUTE, ALL OF THE FOLLOWING ARE LIKELY
CONSUMER TRENDS OVER THE NEXT TEN YEARS EXCEPT:
A.
AN INCREASED FOCUS ON THE ACQUISITION
OF LUXURY ITEMS AND “STATUS SYMBOLS”
B.
TAKING GREATER STEPS TOWARD PROACTIVE
HEALTH CARE
C.
MAKING “MEANINGFUL GREEN” INITIATIVES
THAT AFFECT ENVIRONMENTAL, SOCIAL, AND
ECONOMIC DIMENSIONS
D.
GETTING OFF THE GRID
E.
ALL OF THE ABOVE ARE LIKELY TRENDS
ANS: A
THE NATURAL MARKETING INSTITUTE PREDICTS THAT CONSUMERS WILL DEMONSTRATE AN
INCREASING ORIENTATION TOWARD ENVIRONMENTALISM.
PTS: 1
REF: 91
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL IV ANALYSIS
21. MARTINA HAS BEGUN A SMALL GARDEN IN HER BACKYARD. SHE HAS ALSO INSTALLED A WATER
PURIFICATION IN HER HOME, AS WELL AS A MEANS TO COLLECT AND STORE RAINWATER FOR
FUTURE USE IN HER GARDEN. MARTINA’S ACTIONS BEST REPRESENT WHICH “CORE AMERICAN
VALUE”?
A.
CONFORMITY
B.
SOCIAL JUSTICE
C.
MATERIALISM
D.
UPWARD MOBILITY
E.
SELF-SUFFICIENCY
ANS: E
A NEW SPIRIT OF SELF-RELIANCE OR SELF-SUFFICIENCY IS DRIVING MANY CONSUMERS’ DESIRE
TO “GET OFF THE GRID.”
PTS: 1
REF: 91
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
22. ACCORDING TO RESEARCH ON GEOGRAPHY AND PERSONALITY, WHICH OF THE FOLLOWING
WOULD BE CATEGORIZED AS A “HIGH-ANXIETY” STATE?
A.
MINNESOTA
B.
UTAH
C.
NEW YORK
D.
CALIFORNIA
E.
NEW MEXICO
ANS: C
“HIGH-ANXIETY” STATES INCLUDE NOT ONLY NEW YORK AND NEW JERSEY BUT ALSO STATES
STRESSED BY POVERTY, SUCH AS WEST VIRGINIA AND MISSISSIPPI.
PTS: 1
REF: 92-93
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
23. A(N) _____ IS THE PRACTICE OF CHOOSING GOODS AND SERVICES THAT MEET ONE'S DIVERSE
NEEDS AND INTERESTS RATHER THAN CONFORMING TO TRADITIONAL STEREOTYPES.
A.
AGGREGATED LIFESTYLE
B.
COMPONENT LIFESTYLE
C.
PSYCHOGRAPHIC MODE OF LIVING
D.
DEMOGRAPHICALLY DEFINED LIFESTYLE
E.
TARGETED LIFESTYLE
ANS: B
THIS IS THE DEFINITION OF COMPONENT LIFESTYLES.
PTS: 1
REF: 93
KEY: CB&E MODEL CUSTOMER
OBJ: 04-2
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL I KNOWLEDGE
24. LANCE IS A 30-YEAR OLD, SINGLE PROFESSIONAL WHO ENJOYS HIKING, COLLEGE SPORTS, AND
POETRY. HE LIVES WITH HIS GIRLFRIEND BUT DOES NOT HAVE PLANS TO GET MARRIED IN THE
NEAR FUTURE. HE LEADS A LIFE MUCH DIFFERENT FROM HIS FATHER WHO MARRIED RIGHT
AFTER HIGH SCHOOL, HAD CHILDREN, AND WORKED FOR THE SAME COMPANY HIS ENTIRE
CAREER. MORE AND MORE IN THE U.S., CONSUMERS LIKE LANCE ARE ENJOYING _____, PIECING
TOGETHER A VARIETY OF INTERESTS, PRODUCTS, AND SERVICES INSTEAD OF CONFORMING TO
TRADITIONAL STEREOTYPES.
A.
WELL-DEFINED SEGMENTS
B.
COMPONENT LIFESTYLES
C.
SIMPLE MULTIPURPOSE PRODUCTS
D.
CONFORMITY AND COHESIVENESS
E.
MODULAR MARKET MIXES
ANS: B
COMPONENT LIFESTYLES ARE THE PRACTICE OF CHOOSING GOODS AND SERVICES THAT MEET
ONE’S DIVERSE NEEDS AND INTERESTS RATHER THAN CONFORMING TO A SINGLE, TRADITIONAL
LIFESTYLE.
PTS: 1
REF: 93
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
25. KENDRA TEACHES HIGH SCHOOL SCIENCE. SHE IS ALSO A WINE EXPERT, A PTA PRESIDENT, AND
AN ACCOMPLISHED SCULPTOR. HER OTHER INTERESTS INCLUDE SCRAPBOOKING, GOURMET
COOKING, AND NASCAR. MARKETERS WOULD CATEGORIZE KENDRA AS _____.
A.
FITTING INTO A CAREGIVER SEGMENT
B.
A MEMBER OF THE TYPICAL EDUCATIONBASED TARGET SEGMENT
C.
NOT BELONGING TO ANY TARGET MARKET
D.
HAVING A COMPONENT LIFESTYLE
E.
HAVING A CONFORMING LIFESTYLE
ANS: D
A COMPONENT LIFESTYLE PIECES TOGETHER PRODUCTS AND SERVICES THAT FIT A VARIETY OF
INTERESTS AND NEEDS, AND DOES NOT CONFORM TO ANY PARTICULAR STEREOTYPE.
PTS: 1
REF: 93
OBJ: 04-2
TOP: AACSB REFLECTIVE
THINKING
KEY: CB&E MODEL CUSTOMER
MSC: BLOOMS LEVEL III APPLICATION
26. LEE SIRACCA OWNS TWO HORSES, BREWS HIS OWN BEER, PARTICIPATES IN THE CIVIC ARTS
COMMISSION, ENJOYS TALK RADIO, HIKES ON WILDERNESS TRAILS, AND COMPETES IN RODEOS.
ALL OF THESE DIVERSE NEEDS AND INTERESTS INFLUENCE HIS CHOICES OF THE GOODS AND
SERVICES HE BUYS. LEE HAS A:
A.
COMPONENT LIFESTYLE
B.
DEMOGRAPHICALLY ORIENTED LIFESTYLE
C.
MULTICULTURAL DEMOGRAPHIC POSITION
D.
FRAGMENTED MARKET ORIENTATION
E.
SEGMENTED BUYING STRATEGY
ANS: A
A COMPONENT LIFESTYLE PIECES TOGETHER PRODUCTS AND SERVICES THAT FIT A VARIETY OF
INTERESTS AND NEEDS, AND DOES NOT CONFORM TO ANY PARTICULAR STEREOTYPE.
PTS: 1
REF: 93
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
27. THE GROWTH OF DUAL-INCOME FAMILIES HAS RESULTED IN:
A.
BURNOUT
B.
A SENSE OF ENTITLEMENT
C.
DECREASED DISCRETIONARY INCOME
D.
DECREASED GNP
E.
INCREASED PURCHASING POWER
ANS: E
DUAL-INCOME FAMILIES HAVE THE MONEY TO EXERCISE MORE OPTIONS WHEN PURCHASING.
PTS: 1
REF: 93-94
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
28. THE HOME DEPOT HAS UNVEILED A NEW CAMPAIGN TITLED TRUE STORIES, A SERIES OF ONLINE
VIDEOS AND TV ADS TELLING THE STORIES OF WOMEN WHO FACED CHALLENGING PERSONAL
CIRCUMSTANCES AND TOOK IT UPON THEMSELVES TO COMPLETE HOME IMPROVEMENT
PROJECTS—WITH HOME DEPOT’S HELP, OF COURSE. WHICH OF THE FOLLOWING EVENTS
PROBABLY HAD THE GREATEST IMPACT ON HOME DEPOT’S NEW MARKETING STRATEGY?
A.
THE GROWING NUMBER OF ONE-CHILD
FAMILIES
B.
C.
D.
THE INCREASING NUMBER OF IMMIGRANTS
FROM NORTHERN EUROPE
THE GROWING NUMBER OF PEOPLE ON THE
INTERNET
THE INCREASING NUMBER OF WORKING
WOMEN
E.
THE GROWING NUMBER OF PEOPLE OF
RETIREMENT AGE WHO ARE CONTINUING
WORK
ANS: D
THE PHENOMENON OF WORKING WOMEN HAS PROBABLY HAD A GREATER EFFECT ON MARKETING
THAN ANY OTHER SOCIAL CHANGE.
PTS: 1
REF: 93-94
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL VI EVALUATION
29. IF YOU WERE TO ASK AMERICANS WHAT THEY MOST DESIRE TO MAKE THEIR LIVES EASIER, MOST
WILL WANT MORE TIME. THIS FEELING THAT THERE ARE NOT ENOUGH HOURS IN A DAY IS AN
EXAMPLE OF A(N) _____ FACTOR THAT HAS STRONGLY INFLUENCED THE MARKETING
ENVIRONMENT.
A.
SOCIAL
B.
ECONOMIC
C.
LEGAL
D.
DEMOGRAPHIC
E.
COMPONENT LIFESTYLE
ANS: A
SOCIAL FACTORS INCLUDE OUR ATTITUDES, VALUES, AND LIFESTYLES. LACK OF TIME IS DUE TO
CONSUMERS’ LIFESTYLES.
PTS: 1
REF: 94
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
30. THE STUDY OF PEOPLE'S VITAL STATISTICS, SUCH AS AGE, RACE AND ETHNICITY, AND LOCATION,
IS CALLED:
A.
CULTURAL SOCIOLOGY
B.
PSYCHOMETRICS
C.
ECOLOGY
D.
ETHNOGRAPHY
E.
DEMOGRAPHY
ANS: E
THIS IS THE DEFINITION OF DEMOGRAPHY.
PTS: 1
REF: 95
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
31. ZIMMER CENTRALPULSE IS THE WORLD'S LARGEST PRODUCER OF REPLACEMENT HIPS AND KNEES
FOR ORTHOPEDIC SURGERY. IT IS PARTICULARLY INTERESTED IN MARKETING IN THE
SOUTHWESTERN UNITED STATES, WHERE A LARGE AGING POPULATION LIVES. WHICH EXTERNAL
ENVIRONMENTAL ELEMENT MOST DIRECTLY EXPLAINS ITS CONTINUED GROWTH?
A.
ECONOMIC CONDITIONS
B.
POLITICAL CONDITIONS
C.
CULTURE
D.
E.
DEMOGRAPHY
SOCIAL FORCES
ANS: D
DEMOGRAPHY CONSIDERS THE AGE OF THE TARGET MARKET.
PTS: 1
REF: 95
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
32. WHICH OF THE FOLLOWING IS NOT A DEMOGRAPHIC CHARACTERISTIC OF A POPULATION?
A.
INCOME LEVEL
B.
AGE
C.
VALUES
D.
EDUCATION
E.
BIRTHRATE
ANS: C
VALUES ARE A SOCIAL FACTOR.
PTS: 1
REF: 95
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL IV ANALYSIS
33. RIOT MEDIA IS A MEDIA AND TOY COMPANY THAT CAPITALIZES ON THE "GROSS-OUT" HUMOR
THAT BOYS AGES 8 THROUGH 12 GREATLY ENJOY. IN OTHER WORDS, IT TARGETS:
A.
MEMBERS OF GENERATION X
B.
A COHORT GENERATION
C.
TWEENS
D.
BABY BOOMERS
E.
THE BABY BRIDGING GENERATION
ANS: C
TWEENS ARE DESCRIBED AS PRE- AND EARLY ADOLESCENTS.
PTS: 1
REF: 96
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
34. GIRLS BETWEEN THE AGES OF 8 AND 12 ARE ONE OF THE GROWING MARKETS FOR HIGH-END
SHOE MANUFACTURERS. THESE GIRLS WANT STYLES THAT ARE BOTH YOUTHFUL AND GROWN-UP
LOOKING. THEY ARE:
A.
MEMBERS OF GENERATION X
B.
A COHORT GENERATION
C.
TWEENS
D.
BABY BOOMERS
E.
THE BABY BRIDGING GENERATION
ANS: C
TWEENS ARE DESCRIBED AS PRE- AND EARLY ADOLESCENTS.
PTS: 1
REF: 96
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
35. RESEARCH INDICATES THAT _____ IS THE MOST IMPORTANT THING TO TWEENS.
A.
GETTING GOOD GRADES
B.
BEING HAPPY
C.
STAYING HEALTHY
D.
SPENDING TIME WITH FRIENDS
E.
EATING RIGHT
ANS: B
IN ORDER, RESEARCH INDICATES THAT TWEENS CARE ABOUT BEING HAPPY, GETTING ALONG
WITH FAMILY, GETTING GOOD GRADES, BEING HEALTHY, SCHOOL, AND BEING GOOD WITH
MONEY.
PTS: 1
REF: 97
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
36. WHICH OF THE FOLLOWING STATEMENTS ABOUT AMERICAN TEENAGERS IS CORRECT?
A.
THEY SPEND ABOUT 40 HOURS PER WEEK
TUNED IN ELECTRONICALLY.
B.
ABOUT 25 PERCENT GO TO THE MALL AT
LEAST ONCE A WEEK.
C.
MORE THAN 50 PERCENT HAVE A PERSONAL,
ONLINE BLOG.
D.
THEY PREFER ONLINE FRIENDS TO “REAL”
FRIENDS.
E.
THEY WOULD RATHER SHOP IN A STORE THAN
ONLINE.
ANS: E
PTS: 1
TOP: AACSB REFLECTIVE THINKING
MSC: BLOOMS LEVEL IV ANALYSIS
REF: 97-98
OBJ: 04-3
KEY: CB&E MODEL CUSTOMER
37. _____ ARE STRONGLY ATTACHED TO TECHNOLOGY, FAMILY-ORIENTED, AND IMPATIENT, AND
ARE QUICK SHOPPERS.
A.
GENERATION XERS
B.
MEMBERS OF THE COHORT GENERATION
C.
BABY BOOMERS
D.
GENERATION YERS
E.
MEMBERS OF THE BABY BRIDGING
GENERATION
ANS: D
GEN YERS TEND TO BE IMPATIENT, FAMILY-ORIENTED, INQUISITIVE, OPINIONATED, DIVERSE,
TIME MANAGERS, “STREET SMART,” AND CONNECTED.
PTS: 1
REF: 98
KEY: CB&E MODEL CUSTOMER
OBJ: 04-3
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL III APPLICATION
38. MERISSA CHAMPLAIN DESIGNS AND SELLS CLOTHES FOR YOUNG WORKING WOMEN. HER
MARKETING MANAGERS RECENTLY TOLD HER THAT SHE’LL BE IN FINANCIAL TROUBLE UNLESS
SHE STARTS DESIGNING CLOTHES SUITED TO GEN YERS. WHY IS THIS?
A.
GEN YERS ARE PICKY
B.
GEN YERS ARE MORE MULTICULTURAL
C.
BABY BOOMERS PROVIDE ALL OF THE
DISPOSABLE INCOME FOR GEN Y MEMBERS
D.
DEMOGRAPHICALLY, GEN YERS ARE AN
EXTREMELY LARGE GROUP OF CONSUMERS
E.
GEN YERS ARE EASILY SWAYED BY
TRADITIONAL PROMOTION MEDIA
ANS: D
THE SIZE OF THIS GROUP MAKES THEM ESPECIALLY IMPORTANT TO ALL MARKETERS.
PTS: 1
REF: 98
KEY: CB&E MODEL CUSTOMER
OBJ: 04-3
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL III APPLICATION
39. WHICH OF THE FOLLOWING REPRESENTS THE LARGEST GROUP OF CONSUMERS IN THE UNITED
STATES?
A.
TWEENS
B.
GEN Y
C.
GEN X
D.
BABY BOOMERS
E.
BOOMERANGS
ANS: B
DUE TO IMMIGRATION AND THE AGING OF THE BOOMER GENERATION, GEN Y PASSED THE
BOOMERS IN TOTAL POPULATION IN 2010, WITH MORE THAN 75 MILLION MEMBERS.
PTS: 1
REF: 98
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-4
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
40. CHRISTOPHER IS A GEN YER. IF HE FITS THE TYPICAL PROFILE OF HIS DEMOGRAPHIC, YOU COULD
REASONABLY EXPECT HIM TO:
A.
FROWN ON INTERRACIAL MARRIAGES
B.
ACTIVELY SEEK OUT “GREEN” PRODUCTS
C.
SPEND MUCH MORE TIME WITH FRIENDS THAN
WITH FAMILY
D.
KEEP HIS OPINIONS MOSTLY TO HIMSELF AND
DO WHAT AUTHORITY FIGURES TELL HIM TO
DO
E.
ALL OF THE ABOVE ARE TRUE.
ANS: B
GEN YERS TEND TO BE IMPATIENT, FAMILY-ORIENTED, INQUISITIVE, OPINIONATED, DIVERSE,
TIME MANAGERS, “STREET SMART,” AND CONNECTED. THEY ALSO CARE ABOUT THE
ENVIRONMENT AND OFTEN SEEK OUT “GREEN” PRODUCTS.
PTS: 1
REF: 100
KEY: CB&E MODEL CUSTOMER
OBJ: 04-3
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL III APPLICATION
41. CONSUMERS BORN BETWEEN 1965 AND 1978 FORM A GROUP CALLED:
A.
TWEENS
B.
YUPPIES
C.
COHORT MARKETS
D.
AMERICA'S MASS MARKET
E.
GENERATION X
ANS: E
PTS: 1
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL I KNOWLEDGE
REF: 100
OBJ: 04-3
KEY: CB&E MODEL CUSTOMER
42. YOU ARE A MARKETING CONSULTANT FOR A FIRM THAT WANTS TO TARGET MEMBERS OF
GENERATION X. BASED ON YOUR KNOWLEDGE OF THIS DEMOGRAPHIC GROUP, YOUR ADVICE TO
THIS FIRM WOULD BE TO _____.
A.
EMPHASIZE FREEDOM FROM WORK AND
COMMITMENT
B.
EMPHASIZE THE IMPORTANCE OF THEIR
CHILDREN’S EDUCATION
C.
AVOID TOPICS DEALING WITH MATERIALISTIC
POSSESSIONS
D.
EMPHASIZE THE BABY BOOM CULTURE
E.
CONCENTRATE ON SOCIAL NETWORKING AS
THE BEST WAY TO REACH THIS GROUP
ANS: B
GEN XERS TEND TO BE MORE PROTECTIVE AND INVOLVED WITH THEIR KIDS THAN WERE THE
BABY BOOMER GENERATION.
PTS: 1
REF: 100-101
KEY: CB&E MODEL CUSTOMER
OBJ: 04-3
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL VI EVALUATION
43. THE GROUP OF PEOPLE IN THE UNITED STATES WHO WERE BORN BETWEEN 1946 AND 1964 ARE
KNOWN AS:
A.
GENERATION XERS
B.
GRAY MARKETS
C.
SYNERGISTIC COHORTS
D.
THE BABY BUST GENERATION
E.
BABY BOOMERS
ANS: E
BABY BOOMERS ARE CONSIDERED TO BE AMERICA’S MASS MARKET.
PTS: 1
REF: 101
KEY: CB&E MODEL CUSTOMER
OBJ: 04-3
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL I KNOWLEDGE
44. ALL OF THE FOLLOWING ARE PROMOTIONAL MESSAGES CREATED TO RESONATE WITH BABY
BOOMERS, EXCEPT:
A.
CONNECTING WITH THEIR SENSE OF
THEMSELVES AS TRAILBLAZERS
B.
FOCUSING ON THEIR LIVES, NOT THEIR AGES
C.
LINKING THE BRAND WITH A MAJOR LIFE
EVENT
D.
MARKETING TO BOOMERS’ TENDENCIES AS
BIG SPENDERS
E.
KNOWING THAT BOOMERS ARE JADED
STUDENTS OF ADS
ANS: D
MARKETERS SPEND COUNTLESS HOURS TRYING TO CREATE PROMOTIONAL MESSAGES THAT WILL
RESONATE WITH BOOMERS.
PTS: 1
REF: 102-103
KEY: CB&E MODEL CUSTOMER
OBJ: 04-3
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL II COMPREHENSION
45. WHICH OF THE FOLLOWING STATEMENTS CHARACTERIZES THE GROWING ETHNIC MARKETS IN
THE UNITED STATES TODAY?
A.
MARKETERS ARE MODIFYING PRODUCTS TO
APPEAL TO DIFFERENT ETHNICITIES
B.
THE UNITED STATES IS BECOMING A
MULTICULTURAL SOCIETY
C.
THE UNITED STATES IS MOVING AWAY FROM
BEING A SOCIETY DOMINATED BY WHITES
AND ROOTED IN WESTERN CULTURE
D.
THE PERCENTAGE OF WHITES IN THE UNITED
STATES' POPULATION WILL DECLINE
RELATIVE TO OTHER MINORITY GROUPS
E.
ALL OF THE STATEMENTS CHARACTERIZE THE
DEMOGRAPHIC TRANSITION IN THE UNITED
STATES TODAY
ANS: E
IMMIGRATION IS NOT EXPECTED TO SLOW TO A TRICKLE, ALTHOUGH THE DIVERSITY OF THE U.S.
POPULATION IS PROJECTED TO STABILIZE IN THE NEXT CENTURY AS THE BIRTHRATE AMONG
MINORITIES PLATEAUS.
PTS: 1
REF: 103
KEY: CB&E MODEL CUSTOMER
OBJ: 04-4
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL IV ANALYSIS
46. THE MAJORITY OF HISPANIC AMERICANS ARE OF _____ DESCENT.
A.
MEXICAN
B.
PUERTO RICAN
C.
SPANISH
D.
SOUTH AMERICAN
E.
CUBAN
ANS: A
NEARLY 60 PERCENT OF HISPANIC AMERICANS ARE OF MEXICAN DESCENT. THE NEXT LARGEST
GROUP, PUERTO RICANS, MAKE UP JUST UNDER 10 PERCENT OF HISPANICS. ALL OTHERS EACH
ACCOUNT FOR LESS THAN 5 PERCENT OF ALL HISPANICS.
PTS: 1
REF: 103
KEY: CB&E MODEL CUSTOMER
47. IN GENERAL, HISPANIC AMERICANS:
A.
OBJ: 04-4
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL II COMPREHENSION
PREFER TO BUY AMERICAN PRODUCTS
RATHER THAN BRANDS FOUND IN THEIR
HOMELANDS, BECAUSE THEY WANT TO BE
“REAL AMERICANS”
B.
ARE MUCH OLDER THAN THE GENERAL U.S.
POPULATION
C.
TEND TO BE VERY BRAND LOYAL
D.
RESPOND UNFAVORABLY TO ADVERTISING
TARGETED DIRECTLY AT THEM
E.
ARE HIGHLY AWARE OF MOST MAINSTREAM
U.S. BRANDS
ANS: C
HISPANIC AMERICANS ARE VERY BRAND LOYAL, BUT THEY OFTEN ARE NOT AWARE OF MANY
MAINSTREAM U.S. BRANDS.
PTS: 1
REF: 104
KEY: CB&E MODEL CUSTOMER
OBJ: 04-4
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL II COMPREHENSION
48. IF CURRENT TRENDS CONTINUE, BY 2015 _____ OF ALL BLACK AMERICANS WILL LIVE IN THE
SUBURBS.
A.
AROUND 10 PERCENT
B.
ROUGHLY ONE-QUARTER
C.
ALMOST ONE-THIRD
D.
MORE THAN HALF
E.
OVER 75 PERCENT
ANS: D
PTS: 1
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL I KNOWLEDGE
REF: 105
OBJ: 04-4
KEY: CB&E MODEL CUSTOMER
49. COMPARED TO OTHER U.S. HOUSEHOLDS, A MUCH LARGER PROPORTION OF AFRICAN AMERICAN
CONSUMERS:
A.
SHOP AT CONVENIENCE-ORIENTED FORMATS
SUCH AS DRUG AND DOLLAR STORES
B.
ARE BILINGUAL
C.
ARE SKEPTICAL OF THE NEW ELECTRONIC
TECHNOLOGY
D.
HAVE ANNUAL INCOMES GREATER THAN
$75,000
E.
GET THEIR NEWS FROM NEWSPAPERS RATHER
THAN TELEVISION OR THE RADIO
ANS: A
A MUCH LARGER PROPORTION OF AFRICAN AMERICAN CONSUMERS SHOP AT CONVENIENCEORIENTED FORMATS, AS COMPARED TO OTHER U.S. HOUSEHOLDS.
PTS: 1
REF: 106-107
KEY: CB&E MODEL CUSTOMER
OBJ: 04-4
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL II COMPREHENSION
50. WHICH ETHNIC GROUP HAS THE HIGHEST AVERAGE FAMILY INCOME?
A.
HISPANIC AMERICANS
B.
AFRICAN AMERICANS
C.
ASIAN AMERICANS
D.
SOUTH AMERICANS
E.
CUBAN AMERICANS
ANS: C
ASIAN AMERICANS, WHO REPRESENT ONLY 4.2 PERCENT OF THE U.S. POPULATION, HAVE THE
HIGHEST AVERAGE FAMILY INCOME OF ALL GROUPS.
PTS: 1
REF: 107
KEY: CB&E MODEL CUSTOMER
OBJ: 04-4
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL II COMPREHENSION
51. WHICH OF THE FOLLOWING IS THE LARGEST ASIAN AMERICAN SEGMENT?
A.
CHINESE
B.
FILIPINO
C.
VIETNAMESE
D.
KOREAN
E.
JAPANESE
ANS: A
CHINESE COMPRISE THE LARGEST ASIAN AMERICAN SEGMENT.
PTS: 1
REF: 107
KEY: CB&E MODEL CUSTOMER
OBJ: 04-4
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL I KNOWLEDGE
52. BECAUSE CORAZON IS A FILIPINO-AMERICAN, SHE IS:
A.
PROBABLY UNFAMILIAR WITH MOST
AMERICAN CUSTOMS
B.
UNLIKELY TO SPEAK HER NATIVE TONGUE
WHEN SHE IS AT HOME WITH HER FAMILY.
C.
PROBABLY A PRACTICING BUDDHIST
D.
MAKING ALL THE PURCHASING DECISIONS
FOR HER FAMILY
E.
NOT LIKELY TO BE A FLUENT SPEAKER OF
ENGLISH
ANS: B
MANY ASIAN AMERICANS SPEAK THEIR NATIVE TONGUE AT HOME, BUT FILIPINOS ARE FAR LESS
LIKELY TO DO SO. FILIPINOS HAVE A HIGH RATE OF U.S. ACCULTURATION DUE TO ENGLISH
COMPETENCY AND ARE HIGHLY RELIGIOUS (PREDOMINATELY ROMAN CATHOLIC).
PTS: 1
REF: 108-109
KEY: CB&E MODEL CUSTOMER
OBJ: 04-4
TOP: AACSB DIVERSITY
MSC: BLOOMS LEVEL III APPLICATION
53. RECESSION, INFLATION, AND CONSUMERS’ INCOMES THAT INFLUENCE THE MARKETING
ENVIRONMENT ARE CALLED _____ FACTORS.
A.
ECONOMIC
B.
SOCIO-DEMOGRAPHIC
C.
POLITICAL
D.
GOVERNMENT
E.
CONSUMPTION
ANS: A
THE THREE ECONOMIC AREAS OF GREATEST CONCERN TO MOST MARKETERS ARE CONSUMERS’
INCOMES, INFLATION, AND RECESSION.
PTS: 1
REF: 109
THINKING
KEY: CB&E MODEL CUSTOMER
54. AFTER-TAX INCOME IS REFERRED TO AS:
A.
B.
C.
D.
E.
OBJ: 04-5
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
GROSS INCOME
MARGINAL INCOME
PURCHASING INCOME
UNENCUMBERED INCOME
DISPOSABLE INCOME
ANS: E
DISPOSABLE INCOME IS WHAT CONSUMERS HAVE LEFT AFTER PAYING TAXES.
PTS: 1
REF: 109
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-5
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
55. CHINA’S NEW 5 PERCENT TAX ON DISPOSABLE WOODEN CHOPSTICKS, REFLECTING CONCERNS
ABOUT DEFORESTATION, HAS BEEN PRAISED BY ENVIRONMENTALISTS. THE MOVE IS HITTING
HARD AT THE JAPANESE WHO CONSUME 25 BILLION SETS OF WOODEN CHOPSTICKS ANNUALLY.
ALMOST ALL OF THE CHOPSTICKS USED IN JAPAN COME FROM CHINA. THE PRICE OF WOODEN
CHOPSTICKS IN JAPAN HAS INCREASED BY ALMOST 50 PERCENT. THE PRICE INCREASE
INFLUENCES WHICH FACTOR OF THE EXTERNAL ENVIRONMENT OF RESTAURANT OWNERS IN
JAPAN?
A.
B.
C.
D.
E.
ECONOMIC
TECHNOLOGICAL
DEMOGRAPHIC
SOCIAL
ETHNICITY
ANS: A
PURCHASING POWER MAY BE DIMINISHED, ESPECIALLY FOR RESTAURANTS.
PTS: 1
REF: 109
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-5
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
56. FOUR DOLLAR A GALLON GASOLINE WAS UNIMAGINABLE WHEN MECHANICAL GAS PUMPS FIRST
APPEARED IN THE UNITED STATES IN THE 1930S. THEIR SPINNING DIALS CANNOT REGISTER
SALES BEYOND $99.99, WHICH WILL NOT FILL UP MANY SUVS. THE PUMPS CAN BE MODERNIZED
FOR ABOUT $650, BUT THE COMPANY THAT PROVIDES THIS SERVICE HAS A HUGE BACKLOG. THIS
IS AN EXAMPLE OF HOW _____ FACTORS AFFECT SMALL CONVENIENCE STORES AND SERVICE
STATIONS.
A.
TECHNOLOGICAL AND CULTURAL
B.
COMPETITIVE AND NATURAL
C.
ECONOMIC AND TECHNOLOGICAL
D.
CULTURAL AND ECONOMIC
E.
DEMOGRAPHIC AND MARKETING MIX
ANS: C
THE RETROFITTINGS FOR THE PUMPS ARE A TECHNOLOGICAL FACTOR, AND THE INCREASING
PRICE OF GAS IS AN ECONOMIC FACTOR.
PTS: 1
REF: 109 | 113
KEY: CB&E MODEL STRATEGY
OBJ: 04-5 | 04-6
TOP: AACSB TECHNOLOGY
MSC: BLOOMS LEVEL III APPLICATION
57. _____ IS THE PRIMARY DETERMINANT OF A PERSON’S EARNING POTENTIAL.
A.
RACE
B.
EDUCATION
C.
SOCIAL CLASS
D.
GENDER
E.
MARITAL STATUS
ANS: B
ONLY 1 PERCENT OF THOSE WITH A HIGH SCHOOL EDUCATION EARN OVER $100,000 ANNUALLY;
BY COMPARISON, 13 PERCENT OF COLLEGE-EDUCATED WORKERS EARN SIX FIGURES OR MORE.
PTS: 1
REF: 110
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-5
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL IV ANALYSIS
58. _____ IS MEASURED BY COMPARING THE RELATIVE COST OF A STANDARD OF GOODS AND
SERVICES IN DIFFERENT GEOGRAPHIC AREAS.
A.
GROSS INDIVIDUAL PROFIT
B.
PURCHASING POWER
C.
NET PROFIT
D.
RELATIVE PRICING
E.
PRICE ESCALATION
ANS: B
ANOTHER WAY TO THINK OF PURCHASING POWER IS INCOME MINUS THE COST OF LIVING (I.E.,
EXPENSES).
PTS: 1
REF: 110
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-5
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
59. THE HIGHER YOUR _____, THE HIGHER YOUR PURCHASING POWER:
A.
GROSS INCOME
B.
SOCIAL CLASS
C.
DISPOSABLE INCOME
D.
COST OF LIVING
E.
INFLATION INDEX
ANS: C
PURCHASING POWER IS MEASURED BY COMPARING INCOME TO THE RELATIVE COST OF A SET
STANDARD OF GOODS AN SERVICES. IT IS A ALIGNED WITH NET INCOME, OR INCOME MINUS A
STANDARD SET OF EXPENSES. ASSUMING A CONSTANT INCOME, THE HIGHER THE COST OF LIVING
(THE EXPENSES), THE LOWER THE PURCHASING POWER IS.
PTS: 1
REF: 110
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-5
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
60. ALL OF THE FOLLOWING ARE TAKEN INTO ACCOUNT IN A COST OF LIVING INDEX EXCEPT:
A.
INCOME
B.
HOUSING
C.
FOOD AND GROCERIES
D.
HEALTH CARE
E.
ENTERTAINMENT
ANS: A
IN GENERAL, A COST OF LIVING INDEX TAKES INTO ACCOUNT HOUSING, FOOD AND GROCERIES,
TRANSPORTATION, UTILITIES, HEALTH CARE, AND MISCELLANEOUS EXPENSES SUCH AS
CLOTHING, SERVICES, AND ENTERTAINMENT.
PTS: 1
REF: 110
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-5
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL IV ANALYSIS
61. _____ IS MEASURE OF THE DECREASE IN THE VALUE OF MONEY, EXPRESSED AS THE PERCENTAGE
REDUCTION IN VALUE SINCE THE PREVIOUS YEAR.
A.
INFLATION
B.
RECESSION
C.
DEPRESSION
D.
CONSUMER BREAK-EVEN
E.
PRICE ESCALATION
ANS: A
THIS IS THE DEFINITION OF INFLATION.
PTS: 1
REF: 110
OBJ: 04-5
TOP: AACSB REFLECTIVE
THINKING
KEY: CB&E MODEL PRICING
KNOWLEDGE
MSC:
BLOOMS LEVEL I
62. A PERIOD OF ECONOMIC ACTIVITY CHARACTERIZED BY NEGATIVE GROWTH, WHICH REDUCES
DEMAND FOR GOODS AND SERVICES, IS CALLED:
A.
STAGNATION
B.
INFLATION
C.
RECESSION
D.
PRICE ESCALATION
E.
PARITY
ANS: C
A RECESSION IS A PERIOD OF ECONOMIC ACTIVITY CHARACTERIZED BY NEGATIVE GROWTH.
PTS: 1
REF: 111
THINKING
KEY: CB&E MODEL PRICING
KNOWLEDGE
OBJ: 04-5
MSC:
TOP: AACSB REFLECTIVE
BLOOMS LEVEL I
63. THE MAIN PRODUCT FOR ZAMPERLA INDUSTRIES IS GONDOLA CARS FOR AMUSEMENT PARK
RIDES AND SKI LIFTS. ITS MARKETING DEPARTMENT CONSTANTLY MONITORS TRENDS IN THE
EXTERNAL ENVIRONMENT THAT MIGHT AFFECT THE FIRM. WHICH ECONOMIC FACTOR MAY POSE
A MAJOR THREAT TO THIS COMPANY?
A.
FEW COMPETITORS IN THIS INDUSTRY
B.
TECHNOLOGICAL IMPROVEMENTS THAT ARE
AUTOMATING PRODUCTION OF CARS
C.
D.
A RECESSION
INCREASING INTEREST IN THE ENVIRONMENT
AND RECYCLING
E.
EXISTING LEGISLATION REQUIRING
LICENSING OF ALL AMUSEMENT PARK RIDES
ANS: C
A RECESSION IS A PERIOD OF ECONOMIC ACTIVITY CHARACTERIZED BY NEGATIVE GROWTH,
WHICH REDUCES DEMAND FOR GOODS AND SERVICES.
PTS: 1
REF: 111
THINKING
KEY: CB&E MODEL PRICING
APPLICATION
OBJ: 04-5
MSC:
TOP: AACSB REFLECTIVE
BLOOMS LEVEL III
64. SHABBY CHIC FASHION BOUTIQUE HAS RESPONDED TO ECONOMIC TRENDS BY PLACING AN
EMPHASIS ON IMPROVING THE QUALITY OF MERCHANDISE IT OFFERS, IMPROVING CUSTOMER
SERVICE, AND REDUCING ITS COST OF GOODS SOLD BECAUSE CONSUMERS ARE NOT SHOPPING AS
MUCH AS THEY USED TO DUE TO LOWER PURCHASING POWER. SHABBY CHIC IS APPARENTLY
DEALING WITH WHICH FACTOR OF ECONOMIC ACTIVITY?
A.
STAGFLATION
B.
RECESSION
C.
INFLATION
D.
E.
STAGNATION
DISTENSION
ANS: B
ALL THE DESCRIBED TECHNIQUES ARE USED TO COUNTER THE EFFECTS OF REDUCED DEMAND
DURING RECESSION.
PTS: 1
REF: 111-112
THINKING
KEY: CB&E MODEL PRICING
APPLICATION
OBJ: 04-5
MSC:
TOP: AACSB REFLECTIVE
BLOOMS LEVEL III
65. ALL OF THE FOLLOWING ARE APPROPRIATE TACTICS FOR MARKETERS TO USE DURING A TIME OF
ECONOMIC RECESSION EXCEPT:
A.
PROMOTE PRODUCT VALUE
B.
MAINTAIN AND IMPROVE CUSTOMER
SERVICES
C.
REDUCE PRICES
D.
REDUCE INVENTORIES
E.
INCREASE PRICE
ANS: E
INCREASING PRICE WILL MAKE IT EVEN MORE DIFFICULT FOR CONSUMERS IN A BAD ECONOMIC
PERIOD CHARACTERIZED BY A RECESSION.
PTS: 1
REF: 112
KEY: CB&E MODEL PRICING
COMPREHENSION
OBJ: 04-5
MSC:
TOP: AACSB TECHNOLOGY
BLOOMS LEVEL II
66. BLOGS CREATED BY CONSUMERS CAN BE USED TO ASSESS CUSTOMER ATTITUDES TOWARD NEW
PRODUCTS AS WELL AS CUSTOMER PERCEPTIONS OF NEW PRODUCTS. MARKETERS’ ABILITY TO
SEARCH FOR KEY WORDS USED IN THE BLOGS IS AN EXAMPLE OF A CHANGE IN THE _____ FACTOR
OF THE EXTERNAL ENVIRONMENT.
A.
PSYCHOGRAPHIC
B.
TECHNOLOGICAL
C.
COMPETITIVE
D.
DEMOGRAPHIC
E.
ECONOMIC
ANS: B
BLOGGING EXISTS IN THE TECHNOLOGICAL ENVIRONMENT.
PTS: 1
REF: 113
OBJ: 04-6
TOP: AACSB TECHNOLOGY
KEY: CB&E MODEL ONLINE/COMPUTER MSC: BLOOMS LEVEL III APPLICATION
67. IN THE FUTURE, ELECTRICAL POWER MAY COME FROM QUANTUM NUCLEONICS, A FORM OF
NUCLEAR POWER THAT PRODUCES NO RESIDUAL RADIATION. THE ABILITY TO USE THIS FORM OF
POWER WILL REQUIRE EQUIPMENT ADAPTATIONS, BUT IT WILL SOLVE THE WORLD'S NEED FOR
CLEAN AND EFFICIENT POWER. WHEN QUANTUM NUCLEONICS IS DEVELOPED, IT WILL BE AN
EXAMPLE OF HOW _____ FACTORS CAN AFFECT AN ORGANIZATION.
A.
TECHNOLOGICAL
B.
COMPETITIVE
C.
ECONOMIC
D.
CULTURAL
E.
DEMOGRAPHIC
ANS: A
QUANTUM NUCLEONICS IS PART OF THE TECHNOLOGICAL ENVIRONMENT.
PTS: 1
REF: 113
KEY: CB&E MODEL STRATEGY
OBJ: 04-6
TOP: AACSB TECHNOLOGY
MSC: BLOOMS LEVEL III APPLICATION
68. COMMERCIAL TRUCK DRIVERS HAVE SUFFERED FINANCIALLY AS A RESULT OF INCREASING
DIESEL FUEL. AS THEY LOOK FOR WAYS TO MAKE THEIR TRUCKS PERFORM MORE EFFICIENTLY,
MANUFACTURERS HAVE CREATED TRUCK BODY DESIGNS THAT ARE MORE AERODYNAMICALLY
SOUND. THIS IS AN EXAMPLE OF HOW _____ FACTORS CAN HELP DURING RECESSIONARY
PERIODS.
A.
TECHNOLOGICAL
B.
COMPETITIVE
C.
ECONOMIC
D.
CULTURAL
E.
DEMOGRAPHIC
ANS: A
TECHNOLOGY ENABLES MORE EFFICIENT PRODUCT DESIGNS.
PTS: 1
REF: 113
KEY: CB&E MODEL STRATEGY
69. THE TWO TYPES OF RESEARCH ARE:
A.
B.
C.
D.
E.
OBJ: 04-6
TOP: AACSB TECHNOLOGY
MSC: BLOOMS LEVEL III APPLICATION
BASIC AND APPLIED
PRIMARY AND SECONDARY
PROFIT AND NOT-FOR-PROFIT
DOMESTIC AND GLOBAL
BASIC AND ADVANCED
ANS: A
BASIC RESEARCH ATTEMPTS TO EXPAND THE FRONTIERS OF KNOWLEDGE BUT IS NOT AIMED AT A
SPECIFIC, PRAGMATIC PROBLEM. APPLIED RESEARCH, IN CONTRAST, ATTEMPTS TO DEVELOP
NEW OR IMPROVED PRODUCTS.
PTS: 1
REF: 113
THINKING
KEY: CB&E MODEL RESEARCH
OBJ: 04-6
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
70. WHICH TYPE OF RESEARCH IS ALSO CALLED PURE RESEARCH AND ATTEMPTS TO EXPAND THE
FRONTIERS OF KNOWLEDGE BUT IS NOT AIMED AT A SPECIFIC, PRAGMATIC PROBLEM?
A.
APPLIED
B.
BASIC
C.
PRIMARY
D.
SECONDARY
E.
SYNERGISTIC
ANS: B
BASIC RESEARCH AIMS TO CONFIRM AN EXISTING THEORY OR TO LEARN MORE ABOUT A CONCEPT
OR PHENOMENON.
PTS: 1
REF: 113
THINKING
KEY: CB&E MODEL RESEARCH
OBJ: 04-6
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
71. JUAN IS A MARKETING PROFESSOR RESEARCHING CONSUMER DECISION-MAKING PROCESSES.
SPECIFICALLY, HE IS EXAMINING IF INCLUDING A PICTURE IN A PRINT ADVERTISEMENT IS MORE
EFFECTIVE THAN NOT INCLUDING A PICTURE IN INFLUENCING READERS’ ATTITUDE TOWARD THE
ADVERTISEMENT AND BRAND ADVERTISED. HE IS NOT RESEARCHING ANY SPECIFIC BRAND, BUT
RATHER HE IS INTERESTED IN TESTING DUAL CODING THEORY THAT PREDICTS THAT PICTURES
WILL HAVE A MORE POSITIVE IMPACT ON ATTITUDES. JUAN IS CONDUCTING _____ RESEARCH.
A.
SECONDARY
B.
BASIC
C.
APPLIED
D.
COMPLEX
E.
SYNERGISTIC
ANS: B
BASIC RESEARCH AIMS TO EXPAND THE FRONTIERS OF KNOWLEDGE BUT IS NOT AIMED AT A
SPECIFIC, PRAGMATIC PROBLEM.
PTS: 1
REF: 113
THINKING
KEY: CB&E MODEL RESEARCH
OBJ: 04-6
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
72. WHICH TYPE OF RESEARCH ATTEMPTS TO DEVELOP NEW OR IMPROVED PRODUCTS?
A.
BASIC
B.
SYNERGISTIC
C.
SECONDARY
D.
PRIMARY
E.
APPLIED
ANS: E
APPLIED RESEARCH IS FOCUSED ON A SPECIFIC MARKETING PROBLEM, SUCH AS DEVELOPING NEW
OR IMPROVED PRODUCTS.
PTS: 1
REF: 113
THINKING
KEY: CB&E MODEL RESEARCH
OBJ: 04-6
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
73. A MARKETING RESEARCHER IS CONDUCTING A FOCUS GROUP INTERVIEW WITH WORKING
MOTHERS TO LEARN HOW KRAFT CAN BETTER MEET THEIR NEEDS FOR CONVENIENCE FOODS.
WHAT TYPE OF RESEARCH DOES THIS REPRESENT?
A.
BASIC
B.
C.
D.
E.
APPLIED
SECONDARY
SYNERGISTIC
IDIOSYNCRATIC
ANS: B
APPLIED RESEARCH ATTEMPTS TO DEVELOP NEW OR IMPROVED PRODUCTS.
PTS: 1
REF: 113
THINKING
KEY: CB&E MODEL RESEARCH
OBJ: 04-6
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
74. ACCORDING TO THE WALL STREET JOURNAL, WHICH OF THE FOLLOWING WAS RANKED AS THE
WORLD’S MOST INNOVATIVE COMPANY?
A.
3M
B.
INTEL
C.
APPLE
D.
WAL-MART
E.
PROCTER & GAMBLE
ANS: C
APPLE IS A MASTER OF PRODUCT AND STORE DESIGN.
PTS: 1
REF: 115
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-6
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
75. ALMOST ANY PRODUCT IN INDIA, FROM TAP WATER TO MILK, HAS TRACES OF TOXINS DUE TO THE
OVERUSE AND MISUSE OF INSECTICIDES BY INDIAN FARMERS, BUT THE GOVERNMENT EXPECTS
MULTINATIONAL CORPORATIONS (MNCS) OPERATING IN INDIA TO PRODUCE FOOD THAT IS
TOXIN-FREE. IN THIS WAY BOTH _____ FACTORS INFLUENCE THE OPERATING ENVIRONMENT FOR
FOREIGN FIRMS.
A.
SOCIAL AND TECHNOLOGICAL
B.
LEGAL AND TECHNOLOGICAL
C.
ECONOMIC AND LEGAL
D.
ECONOMIC AND SOCIAL
E.
TECHNOLOGICAL AND DEMOGRAPHIC
ANS: B
IT IS TECHNOLOGICAL IN THAT THE INSECTICIDES ARE A PRODUCT OF TECHNOLOGY. THE
EXPECTATIONS FOR MNCS ARE A PRODUCT OF THE LEGAL ENVIRONMENT.
PTS: 1
REF: 113 | 115
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-6 | 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
76. LAWS AND REGULATIONS OF VARIOUS GOVERNMENTS AND THEIR ONGOING DEVELOPMENT AND
CHANGE ARE AN EXAMPLE OF _____ FACTORS THAT ARE PART OF THE EXTERNAL ENVIRONMENT
OF ALL ORGANIZATIONS.
A.
ECONOMIC INVESTMENT
B.
POLITICAL AND LEGAL
C.
RESEARCH AND DEVELOPMENT
D.
COMPETITIVE
E.
DEMOGRAPHIC
ANS: B
EVERY ASPECT OF THE MARKETING MIX IS SUBJECT TO LAWS AND REGULATIONS, WHICH ARE
PART OF THE POLITICAL AND LEGAL ENVIRONMENT.
PTS: 1
REF: 115
KEY: CB&E MODEL STRATEGY
OBJ: 04-7
TOP: AACSB TECHNOLOGY
MSC: BLOOMS LEVEL II COMPREHENSION
77. WHEN UNIVERSAL STUDIOS JAPAN OPENED, HEALTH INSPECTORS DISCOVERED THE THEME PARK
HAD PIPED INDUSTRIAL-USE WATER NOT SUITABLE FOR DRINKING INTO ITS DRINKING
FOUNTAINS. THE PROBLEM WAS UNANTICIPATED AND COSTLY TO REPAIR. THIS IS PRIMARILY AN
EXAMPLE OF HOW _____ FACTORS CAN CAUSE A BUSINESS TO INCUR UNEXPECTED COSTS.
A.
SOCIAL
B.
ECONOMIC
C.
COMPETITIVE
D.
CULTURAL
E.
POLITICAL AND LEGAL
ANS: E
THE DRINKING WATER IS SUBJECT TO LAWS AND RESTRICTIONS, WHICH ARE ELEMENTS OF THE
POLITICAL AND LEGAL ENVIRONMENT.
PTS: 1
REF: 115
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
78. EVERY NIGHT UNIVERSAL STUDIOS JAPAN HOSTS A FIREWORKS DISPLAY. THE THEME PARK
RECENTLY CAME UNDER GOVERNMENT INVESTIGATION WHEN ALLEGATIONS WERE MADE THAT
THE PARK WAS DETONATING MORE THAN 50 POUNDS OF EXPLOSIVES IN ITS NIGHTLY FIREWORKS
DISPLAYS. IN THE SMALL NATION, THE USE OF EXPLOSIVES IS STRINGENTLY CONTROLLED. THIS
IS AN EXAMPLE OF HOW _____ FACTORS CAN INFLUENCE A BUSINESS.
A.
COMPETITIVE
B.
LEGAL AND POLITICAL
C.
ECONOMIC
D.
TECHNOLOGICAL
E.
CULTURAL
ANS: B
LAWS AND/OR REGULATIONS REGARDING THE AMOUNT OF EXPLOSIVES ALLOWED ARE PART OF
THE POLITICAL AND LEGAL ENVIRONMENT.
PTS: 1
REF: 115
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
79. ONE OF THE RESULTS OF THE AMERICANS WITH DISABILITIES ACT IS AN INCREASE IN THE
NUMBERS OF DISABLED TRAVELERS. PUBLICATIONS LIKE EMERGING HORIZONS, A CALIFORNIABASED, 25,000-CIRCULATION MAGAZINE FOCUS ON ACCESSIBLE TRAVEL, AND BUSINESSES, SUCH
AS MOBILITY CHALLENGED VACATIONS LTD., SEE THAT DISABLED TOURISTS ARE A GROWING
MARKET. ONE CAN ARGUE THE INCREASE IN TOURISM BY THE DISABLED WAS DUE TO:
A.
CONTROLLABLE ELEMENTS WITHIN
CORPORATE STRUCTURES
B.
LEGAL FORCES THAT CHANGED THE
ATTRACTIVENESS OF VACATION OPTIONS
C.
MACROECONOMIC CONDITIONS THAT MADE
U.S. DESTINATIONS MORE COMPETITIVE
RELATIVE TO INTERNATIONAL SPOTS
D.
A SHIFT IN REGULATORY CONTROLS FROM
THE PUBLIC SECTOR TO THE PRIVATE SECTOR
E.
COMPETITIVE FORCES THAT CHANGED HOW
DISABLED TOURISTS PERCEIVE VACATIONS
ANS: B
CHANGES IN THE LEGAL ENVIRONMENT CAN HAVE A DRAMATIC EFFECT ON MARKETING
STRATEGY.
PTS: 1
REF: 115
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
80. CHINA’S NEW 5 PERCENT TAX ON DISPOSABLE WOODEN CHOPSTICKS, REFLECTING CONCERNS
ABOUT DEFORESTATION, HAS BEEN PRAISED BY ENVIRONMENTALISTS. THE MOVE IS HITTING
HARD AT THE JAPANESE, WHO CONSUME 25 BILLION SETS OF WOODEN CHOPSTICKS ANNUALLY.
ALMOST ALL OF THE CHOPSTICKS USED IN JAPAN COME FROM CHINA. THE REQUIREMENT FOR
CHINESE MANUFACTURERS OF WOODEN CHOPSTICKS TO PAY THE 5 PERCENT TAX IS A _____
FACTOR IN THEIR EXTERNAL ENVIRONMENT.
A.
COMPETITIVE
B.
SOCIAL
C.
DEMOGRAPHIC
D.
TECHNOLOGICAL
E.
LEGAL
ANS: E
THE TAX IS AN EXAMPLE OF GOVERNMENT REGULATION.
PTS: 1
REF: 115
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
81. THE _____ ACT STRENGTHENED THE CLAYTON ACT TO PREVENT CORPORATE ACQUISITIONS
THAT REDUCE COMPETITION.
A.
HART-SCOTT-RODINO
B.
LANHAM-SCOTT
C.
CELLER-KEFAUVER ANTIMERGER
D.
ROBINSON-PATMAN
E.
SHERMAN
ANS: C
SEE EXHIBIT 4.1. THE CELLER-KEFAUVER ACT BOLSTERED THE CLAYTON ACT'S PROVISION
DEALING WITH INTERLOCKING DIRECTORATES AND CLOSED ANOTHER LOOPHOLE THAT HAD
ALLOWED CORPORATE TAKEOVERS.
PTS: 1
REF: 116
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
82. A COLD MEDICINE MANUFACTURER OFFERS A PROMOTION ALLOWANCE TO RETAILERS FOR
SETTING UP DISPLAYS FEATURING ITS PRODUCTS. RETAILERS ARE ALSO OFFERED PROMOTIONAL
ALLOWANCES ON PURCHASES OF THE PRODUCTS. WHICH LEGISLATION REQUIRES THE
MANUFACTURER TO MAKE THESE PROMOTION ALLOWANCES AVAILABLE TO ALL RETAILERS ON A
PROPORTIONATELY EQUAL BASIS?
A.
B.
C.
D.
E.
HART-SCOTT-RODINO ACT
SHERMAN ACT
CELLER-KEFAUVER ANTIMERGER ACT
ROBINSON-PATMAN ACT
LANHAM ACT
ANS: D
SEE EXHIBIT 4.1.
PTS: 1
REF: 116
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
83. THE _____ IS A GOVERNMENTAL BODY THAT HAS THE POWER TO PRESCRIBE MANDATORY
SAFETY STANDARDS FOR ALMOST ALL PRODUCTS CONSUMERS USE.
A.
HEALTH AND WELFARE AGENCY
B.
FEDERAL TRADE COMMISSION
C.
FOOD AND DRUG ADMINISTRATION
D.
FEDERAL COMMUNICATIONS COMMISSION
E.
CONSUMER PRODUCT SAFETY COMMISSION
ANS: E
THE SOLE PURPOSE OF THE CONSUMER PRODUCT SAFETY COMMISSION IS TO PROTECT THE
HEALTH AND SAFETY OF CONSUMERS IN AND AROUND THEIR HOMES. THE COMMISSION HAS THE
POWER TO PRESCRIBE MANDATORY SAFETY STANDARDS FOR ALMOST ALL PRODUCTS
CONSUMERS USE.
PTS: 1
REF: 118
THINKING
KEY: CB&E MODEL PRODUCT
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
84. ALEX PURCHASED A BATTERY-OPERATED DRILL, AND THE FIRST TIME HE USED THE DRILL, THE
BATTERY PACK OVERHEATED AND EXPLODED. AFTER ALEX'S TRIP TO THE EMERGENCY ROOM, IT
WAS DETERMINED THAT THE EXPLOSION WAS DUE TO A PROBLEM WITH HOW THE DRILL WAS
MANUFACTURED. ALEX WOULD LIKE TO LODGE A COMPLAINT ABOUT THE POOR QUALITY OF THE
DRILL'S CONSTRUCTION. TO WHICH FEDERAL AGENCY SHOULD HE COMPLAIN?
A.
B.
C.
D.
E.
LABOR DEPARTMENT
FOOD AND DRUG ADMINISTRATION
FEDERAL TRADE COMMISSION
DEPARTMENT OF TRADE
CONSUMER PRODUCT SAFETY COMMISSION
ANS: E
THE SOLE PURPOSE OF THE CONSUMER PRODUCT SAFETY COMMISSION IS TO PROTECT THE
HEALTH AND SAFETY OF CONSUMERS IN AND AROUND THEIR HOMES. THE COMMISSION HAS THE
POWER TO PRESCRIBE MANDATORY SAFETY STANDARDS FOR ALMOST ALL PRODUCTS
CONSUMERS USE.
PTS: 1
REF: 118
THINKING
KEY: CB&E MODEL PRODUCT
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
85. THE _____ IS AN AGENCY THAT PREVENTS THE USE OF UNFAIR METHODS OF COMPETITION IN
COMMERCE.
A.
FEDERAL COMMUNICATIONS COMMISSION
B.
COMMERCE DEPARTMENT
C.
COMMISSION FOR FAIR TRADE
D.
FEDERAL TRADE COMMISSION
E.
SHERMAN ANTITRUST AGENCY
ANS: D
THE FTC IS AUTHORIZED TO INVESTIGATE THE PRACTICES OF BUSINESS COMBINATIONS AND TO
CONDUCT HEARINGS ON ANTITRUST MATTERS AND DECEPTIVE ADVERTISING.
PTS: 1
REF: 119
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
86. MANY PEOPLE DRINK BOTTLED WATER TODAY, BUT ONE NATIONAL BRAND OF BOTTLED WATER
WAS NOT "SPRING-FRESH" AS ADVERTISED. THE WATER ACTUALLY CAME FROM A WELL
LOCATED IN THE MIDDLE OF AN INDUSTRIAL WAREHOUSE FACILITY AND NEXT TO A INDUSTRIAL
WASTE SITE. TO WHICH ORGANIZATION SHOULD THE CONSUMERS WHO THOUGHT THE
ADVERTISING FOR THE BOTTLED WATER WAS MISLEADING COMPLAIN?
A.
B.
C.
D.
E.
CONSUMER PRODUCT SAFETY COMMISSION
FOOD AND DRUG ADMINISTRATION
FEDERAL TRADE COMMISSION
FEDERAL COMMUNICATIONS COMMISSION
CONSUMER PROTECTION AGENCY
ANS: C
THE FTC IS CHARGED WITH PREVENTING CORPORATIONS FROM USING DECEPTIVE ADVERTISING
AND UNFAIR METHODS OF COMPETITION IN COMMERCE.
PTS: 1
REF: 119
THINKING
KEY: CB&E MODEL PRODUCT
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
87. THE _____ IS THE FEDERAL GOVERNMENT AGENCY CHARGED WITH ENFORCING REGULATIONS
AGAINST SELLING AND DISTRIBUTING ADULTERATED, MISBRANDED, OR HAZARDOUS PRODUCTS
OF A SPECIFIC TYPE.
A.
FEDERAL TRADE COMMISSION
B.
CONSUMER PRODUCT PROTECTION
COMMISSION
C.
U.S. JUSTICE DEPARTMENT
D.
FOOD AND DRUG ADMINISTRATION
E.
AMERICAN SAFETY LEAGUE
ANS: D
THE FOOD AND DRUG ADMINISTRATION FOCUSED ON THE SAFETY OF FOOD AND DRUGS.
PTS: 1
REF: 119
THINKING
KEY: CB&E MODEL PRODUCT
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
88. PEOPLE WHO ARE CONCERNED ABOUT POTENTIAL HAZARDS SURROUNDING “NATURAL” DIETARY
SUPPLEMENTS SHOULD TAKE THEIR CONCERNS TO THE _____.
A.
FEDERAL TRADE COMMISSION
B.
CONSUMER PRODUCT PROTECTION
COMMISSION
C.
U.S. JUSTICE DEPARTMENT
D.
FOOD AND DRUG ADMINISTRATION
E.
AMERICAN SAFETY LEAGUE
ANS: D
THE FOOD AND DRUG ADMINISTRATION FOCUSED ON THE SAFETY OF FOOD AND DRUGS.
PTS: 1
REF: 119
THINKING
KEY: CB&E MODEL PRODUCT
89. THE CAN-SPAM ACT:
A.
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
PROHIBITS COMMERCIAL E-MAILERS FROM
USING FALSE ADDRESSES AND PRESENTING
FALSE OR MISLEADING INFORMATION
B.
REQUIRES MEAT MANUFACTURERS TO OPEN
THEIR FACILITIES TO HEALTH INSPECTION AT
LEAST ONCE PER QUARTER
C.
REQUIRES VERIFIABLE PARENTAL CONSENT
BEFORE A WEB SITE CAN COLLECT
INFORMATION FROM CHILDREN
D.
ALLOWS COMMERCIAL E-MAILERS TO CHARGE
CONSUMERS A FEE TO “OPT OUT” OF
RECEIVING FURTHER E-MAIL FROM THE
SENDER
E.
PROHIBITS THE ONLINE PRACTICE OF
“BEHAVIORAL TARGETING”
ANS: A
THIS IS ONE OF THE REQUIREMENTS OF THE CAN-SPAM ACT.
PTS: 1
REF: 121
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL II COMPREHENSION
90. THE GRAMM-LEACH-BLILEY ACT IS AN IMPORTANT LAW DESIGNED TO:
A.
PROTECT THE CHANNELS OF COMMERCE
B.
RESTRICT ALCOHOL AND TOBACCO
ADVERTISING
C.
ELIMINATE CERTAIN PRODUCTS FROM BEING
ADVERTISED ON CHILDREN’S TELEVISION
PROGRAMS
D.
PROTECT CONSUMERS FROM IDENTITY THEFT
E.
PENALIZE MARKETERS SELLING
MERCHANDISE WITH COUNTERFEIT BRAND
NAMES
ANS: D
THIS ACT IS AIMED AT FINANCIAL COMPANIES AND REQUIRES THOSE CORPORATIONS TO TELL
THEIR CUSTOMERS HOW THEY USE THEIR PERSONAL INFORMATION AND TO HAVE POLICIES THAT
PREVENT FRAUDULENT ACCESS TO IT.
PTS: 1
REF: 121
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
91. WHEN MIRIAM WENT TO THE SPECIALIST, SHE WAS ASKED TO SIGN SEVERAL OFFICIAL FORMS
THAT THE RECEPTIONIST HANDED HER SO THAT HER PRIMARY CARE DOCTOR COULD BE GIVEN
THE RESULTS OF HER MEDICAL EXAMINATION. THE LAW THAT REQUIRES HER PERMISSION FOR
THE PHYSICIAN'S OFFICE TO HAND OUT PERSONAL INFORMATION ABOUT HER IS THE RESULT OF
LEGISLATION DETERMINED TO:
A.
PROTECT THE CHANNELS OF COMMERCE
B.
RESTRICT MEDICAL ADVERTISING
C.
ELIMINATE HEALTH SERVICES FROM LOCAL
JURISDICTION
D.
PROTECT CONSUMERS FROM IDENTITY THEFT
E.
PENALIZE MARKETERS FOR SELLING
UNWANTED SERVICES
ANS: D
THE OFFICE IS ACTING IN ACCORDANCE WITH THE HEALTH INSURANCE PORTABILITY AND
ACCOUNTABILITY ACT.
PTS: 1
REF: 121
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
92. THE NUMBER OF FIRMS A COMPANY MUST FACE, THE RELATIVE SIZE OF THESE FIRMS, AND THE
DEGREE OF INTERDEPENDENCE WITHIN THE INDUSTRY ARE ALL PART OF ITS _____
ENVIRONMENT.
A.
DEMOGRAPHIC
B.
ECONOMIC
C.
POLITICAL
D.
COMPETITIVE
E.
SOCIAL
ANS: D
MANAGEMENT HAS LITTLE CONTROL OVER THE COMPETITIVE ENVIRONMENT CONFRONTING A
FIRM.
PTS: 1
REF: 121
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-8
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL I KNOWLEDGE
93. FRITO-LAY IS CONSIDERED THE KING OF THE SALTY SNACK INDUSTRY WITH ITS DISTRIBUTION
NETWORK OF 42 PLANTS, 12,800 DELIVERY PEOPLE, AND MORE THAN 900 TRACTOR TRAILERS
FORMED INTO A RETAIL DELIVERY POWERHOUSE. SMALLER MANUFACTURERS OF SALTY SNACKS
FIND THAT MONITORING THE ACTIVITIES OF FRITO-LAY IS AN EFFECTIVE WAY TO MONITOR THE
_____ FACTORS WITHIN THEIR EXTERNAL ENVIRONMENTS.
A.
BUREAUCRATIC
B.
MARKETING MIX
C.
COMPETITIVE
D.
SOCIAL
E.
DEMOGRAPHIC
ANS: C
PTS: 1
REF: 121
OBJ: 04-8
TOP: AACSB REFLECTIVE THINKING
KEY: CB&E MODEL STRATEGY
MSC: BLOOMS LEVEL III APPLICATION
94. ABETTA, ROYAL KING, KINCADE, EQUIROYAL, AND AMADEUS ARE ALL MANUFACTURERS AND
MARKETERS OF WESTERN-STYLE SADDLES FOR HORSES. THUS, THE MANUFACTURERS ARE _____
FACTORS IN EACH OTHER'S EXTERNAL ENVIRONMENTS.
A.
COMPONENT LIFESTYLE
B.
COMPETITIVE
C.
ECONOMIC
D.
SOCIAL
E.
LEGAL AND REGULATORY
ANS: B
THE COMPETITIVE ENVIRONMENT ENCOMPASSES THE COMPETITION A FIRM MUST FACE.
PTS: 1
REF: 121
THINKING
KEY: CB&E MODEL PRODUCT
OBJ: 04-8
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
95. WHEN MANY CONSUMERS THINK OF ADHESIVES, THEY THINK OF 3M BECAUSE IT MAKES SO
MANY KINDS OF ADHESIVES USED IN THE HOME. HOWEVER, THE WORLD'S LARGEST ADHESIVE
PRODUCER IS HENKEL CONSUMER ADHESIVE, MAKER OF LOCTITE AND DUCT TAPE. 3M AND
HENKEL ARE PART OF EACH OTHER'S _____ ENVIRONMENT.
A.
COMPETITIVE
B.
ECONOMIC
C.
SOCIAL
D.
MARKETING MIX
E.
LEGAL AND POLITICAL
ANS: A
THE COMPETITIVE ENVIRONMENT ENCOMPASSES THE NUMBER OF COMPETITORS A FIRM MUST
FACE, THE RELATIVE SIZE OF THE COMPETITORS, AND THE DEGREE OF INTERDEPENDENCE WITHIN
THE INDUSTRY.
PTS: 1
REF: 121
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-8
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
SMOKING INFLAMES NON-SMOKERS AND CLAIMS THE LIVES OF MORE THAN 400,000 SMOKERS
EACH YEAR, SO THE ELECTRONIC CIGARETTE IS A WELCOMED ALTERNATIVE. ELECTRONIC
CIGARETTES, CALLED E-CIGARETTES, ARE BATTERY-POWERED DEVICES THAT EMIT A VAPOR
FROM NICOTINE, FLAVORINGS, AND OTHER CHEMICALS. IT LOOKS LIKE A CIGARETTE AND
ALLOWS SMOKERS TO INHALE THE NICOTINE VAPOR IN PLACES WHERE SMOKING IS NOT
ALLOWED. THE PRODUCT HAS BEEN TOUTED AS A MEANS TO QUIT SMOKING AS WELL.
HOWEVER, CRITICS, ESPECIALLY THE FOOD AND DRUG ADMINISTRATION, CLAIM THAT “VAPING”
POSES RISKS. IN FACT, THE FDA CLAIMS ITS TESTS REVEALED A TOXIC CHEMICAL THAT IS
FOUND IN ANTI-FREEZE AS WELL AS OTHER CARCINOGENS. THE FDA BLOCKED A SHIPMENT OF
THE PRODUCT FROM CHINA AND BANNED THE SALE OF THIS PRODUCT IN THE UNITED STATES. IN
ADDITION TO THE SAFETY ISSUE, THE FDA IS CONCERNED THAT CHILDREN MIGHT BE ATTRACTED
TO THIS PRODUCT BECAUSE THEY COME IN FLAVORS OTHER THAN TRADITIONAL MENTHOL, SUCH
AS BUBBLE GUM, CHOCOLATE, AND STRAWBERRY. THE FDA WANTS THIS PRODUCT TO GO
THROUGH THE SAME RIGOROUS TESTING THAT DRUGS MUST GO THROUGH BEFORE BEING
MARKETED. HOWEVER, THE FDA’S AUTHORITY OVER THIS PRODUCT IS QUESTIONED. WHILE
CONGRESS HAS RECENTLY GIVEN THE FDA AUTHORITY OVER TOBACCO PRODUCTS, THIS IS NOT
A TOBACCO PRODUCT AND THE ELECTRONIC CIGARETTE ASSOCIATION IS FIGHTING THE BAN.
96. REFER TO E-CIGARETTES. E-CIGARETTE MANUFACTURERS CLAIM THEY ARE NOT TRYING TO SELL
THIS PRODUCT TO CHILDREN. RATHER, THEY ARE OFFERING AN ALTERNATIVE TO COMBUSTIBLE
TOBACCO FOR COMMITTED SMOKERS. THESE SMOKERS COMPRISE THE MANUFACTURERS’:
A.
TARGET MARKET
B.
BUYING CENTER
C.
CONSUMER CLUSTER
D.
DEMOGRAPHIC SAMPLE
E.
MASS MARKET
ANS: A
A TARGET MARKET IS A DEFINED GROUP THAT MANAGERS FEEL IS MOST LIKELY TO BUY A FIRM'S
PRODUCT.
PTS: 1
REF: 87
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
97. REFER TO E-CIGARETTES. IN 1964, 42 PERCENT OF AMERICANS SMOKED, BUT NOW THAT RATE
HAS DROPPED BELOW 20 PERCENT. WHICH ENVIRONMENTAL FACTOR HAS HAD THE GREATEST
IMPACT ON THIS TREND?
A.
TECHNOLOGICAL FACTORS
B.
ECONOMIC FACTORS
C.
COMPETITIVE FACTORS
D.
DEMOGRAPHIC FACTORS
E.
SOCIAL FACTORS
ANS: E
MANY OF THE SMOKING BANS HAVE RESULTED FROM SOCIAL PRESSURE TO LIMIT SMOKING.
PTS: 1
REF: 90
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
98. REFER TO E-CIGARETTES. MARKETERS OF THE E-CIGARETTE CLAIM THAT THEY ARE NOT
MARKETING THE PRODUCT TO CHILDREN, PARTICULARLY BECAUSE A STARTER KIT COSTS OVER
$100. WHICH ECONOMIC FACTOR ARE THE MARKETERS CLAIMING WILL LIKELY KEEP THIS
PRODUCT OUT OF THE HANDS OF CHILDREN?
A.
INCOME
B.
INFLATION
C.
RECESSION
D.
PURCHASING POWER
E.
INTEREST RATES
ANS: A
THE PURCHASER OF THIS PRODUCT MUST HAVE A LARGE ENOUGH INCOME TO PURCHASE THIS
RELATIVELY EXPENSIVE PRODUCT.
PTS: 1
REF: 109
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-5
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
99. REFER TO E-CIGARETTES. THE E-CIGARETTE HAS BEEN HERALDED AS AN INNOVATIVE PRODUCT
THAT SERVES A NEED FOR SMOKERS BY HELPING THEM QUIT THE HABIT. THIS INNOVATIVE
PRODUCT WAS DEVELOPED FROM CHANGES IN WHICH ENVIRONMENT?
A.
DEMOGRAPHIC
B.
TECHNOLOGICAL
C.
ECONOMIC
D.
SOCIAL
E.
COMPETITIVE
ANS: B
INNOVATION IS PART OF THE TECHNOLOGICAL ENVIRONMENT.
PTS: 1
REF: 113
THINKING
KEY: CB&E MODEL RESEARCH
OBJ: 04-6
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
100. REFER TO E-CIGARETTES. THE FOOD AND DRUG ADMINISTRATION IS PART OF WHICH
ENVIRONMENTAL FACTOR AFFECTING THE MARKETING OF THIS PRODUCT?
A.
DEMOGRAPHIC
B.
TECHNOLOGICAL
C.
POLITICAL AND LEGAL
D.
COMPETITIVE
E.
ECONOMIC
ANS: C
THE FDA IS FEDERAL REGULATORY AGENCY.
PTS: 1
REF: 115
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
KELLY TUMLIN WANTS TO OPEN A DOG GROOMING SALON THAT WILL OFFER HEALTHY,
NATURAL PET CARE AND HOLISTIC PET PRODUCTS. ALL OF THE PRODUCTS SOLD AT THE SALON
WILL BE OF THE HIGHEST QUALITY AND MADE OF ALL-NATURAL INGREDIENTS.. TUMLIN WANTS
TO PAMPER PETS JUST LIKE A SPA PAMPERS THEIR OWNERS. TO DETERMINE THE FEASIBILITY OF
THE GROOMING SALON, TUMLIN HIRED A MARKETING RESEARCHER WHO STUDIED ALL THE
MARKET INFORMATION AVAILABLE AND DETERMINED THAT SINGLE, WHITE-COLLAR WORKERS
BETWEEN THE AGES OF 30 AND 60 WERE THE MOST LIKELY PEOPLE TO USE THE SERVICES
PROPOSED BY TUMLIN. THE RESEARCHER ALSO DETERMINED THE WEST SIDE OF THE CITY OFFERS
THE BEST LOCATION FOR THE ENTERPRISE EVEN THOUGH ZONING REGULATIONS ARE MUCH
STRICTER IN THAT AREA.
101. REFER TO DOG SPA. THE GROUP OF CONSUMERS IDENTIFIED BY THE RESEARCHER AS MOST
LIKELY TO AVAIL THEMSELVES OF THE SERVICES OFFERED BY TUMLIN'S GROOMING SALON IS
CALLED A:
A.
TARGET MARKET
B.
BUYING CENTER
C.
MASS MARKET
D.
CONSUMER CLUSTER
E.
DEMOGRAPHY
ANS: A
A DEFINED GROUP OF CONSUMERS THAT IS MOST LIKELY TO BUY A FIRM'S PRODUCT IS A TARGET
MARKET.
PTS: 1
REF: 87
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-1
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
102. REFER TO DOG SPA. THE FACT THAT PEOPLE WOULD ACTUALLY TREAT THEIR DOGS TO A
LUXURIOUS SPA TREATMENT REFLECTS A CHANGE IN _____ FACTORS WITHIN THE EXTERNAL
ENVIRONMENT.
A.
DEMOGRAPHIC
B.
SOCIAL
C.
TECHNOLOGICAL
D.
GEOGRAPHIC
E.
POLITICAL
ANS: B
SOCIAL FACTORS INCLUDES OUR ATTITUDES, VALUES, AND LIFESTYLES.
PTS: 1
REF: 90
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-2
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
103. REFER TO DOG SPA. DESCRIBING THE MARKET FOR TUMLIN'S GROOMING SALON IN TERMS OF
HOW OLD THEY ARE AND THEIR MARITAL STATE REFLECTS THE USE OF _____ CHARACTERISTICS.
A.
PSYCHOGRAPHIC
B.
DEMOGRAPHIC
C.
ANTHROPOLOGICAL
D.
GEOGRAPHIC
E.
SOCIOLOGICAL
ANS: B
VITAL STATISTICS SUCH AS AGE, RACE, INCOME, AND MARITAL STATUS ARE DEMOGRAPHIC
CHARACTERISTICS.
PTS: 1
REF: 95
THINKING
KEY: CB&E MODEL CUSTOMER
OBJ: 04-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
104. REFER TO DOG SPA. TUMLIN IS DEVELOPING A STRATEGIC MARKETING PLAN TO COVER THE
FIRST FIVE YEARS OF THE SALON'S BUSINESS. SHE MUST BE SURE TO CONSIDER WHICH OF THE
FOLLOWING UNCONTROLLABLE FACTORS IN HER PLAN?
A.
PLACE OR DISTRIBUTION FACTORS
B.
MEDIA BUYING FACTORS
C.
DEMOGRAPHIC FACTORS
D.
DINING AREA LAYOUT FACTORS
E.
PRICING FOR SERVICES
ANS: C
ALL BUT DEMOGRAPHIC FACTORS ARE CONTROLLABLE MARKETING MIX FACTORS.
PTS: 1
REF: 95
THINKING
KEY: CB&E MODEL MARKETING PLAN
OBJ: 04-3
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
105. REFER TO DOG SPA. WHAT TYPE OF RESEARCH DID THE MARKETING CONSULTANT PERFORM FOR
TUMLIN?
A.
BASIC
B.
PRELIMINARY
C.
APPLIED
D.
CAUSAL
E.
FACTORIAL
ANS: C
APPLIED RESEARCH ATTEMPTS TO DEVELOP NEW OR IMPROVED PRODUCTS. THE RESEARCH
CONDUCTED BY THE CONSULTANT PROVIDED INFORMATION TO TUMLIN TO BETTER DEVELOP THE
SERVICE.
PTS: 1
REF: 113
THINKING
KEY: CB&E MODEL RESEARCH
OBJ: 04-6
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
106. REFER TO DOG SPA. THE UNCONTROLLABLE ENVIRONMENTAL FACTORS TUMLIN FACES IN
TERMS OF ZONING RESTRICTIONS FOR THE NEW DOG SALON REPRESENT _____ FACTORS.
A.
ECONOMIC
B.
POLITICAL AND LEGAL
C.
RESEARCH AND DEVELOPMENT
D.
CULTURAL
E.
DEMOGRAPHIC
ANS: B
THE LAWS AND REGULATIONS OF VARIOUS GOVERNMENTS REPRESENT UNCONTROLLABLE
POLITICAL AND LEGAL FACTORS.
PTS: 1
REF: 115
THINKING
KEY: CB&E MODEL STRATEGY
OBJ: 04-7
TOP: AACSB REFLECTIVE
MSC: BLOOMS LEVEL III APPLICATION
ESSAY
1. WHILE MANAGERS CAN CONTROL THE MARKETING MIX, THEY CANNOT CONTROL THE ELEMENTS
IN THE EXTERNAL ENVIRONMENT THAT CONTINUALLY MOLD AND RESHAPE THE TARGET
MARKET. LIST SIX VARIABLES OF THE EXTERNAL ENVIRONMENT THAT ARE NOT DIRECTLY UNDER
THE CONTROL OF MARKETING MANAGERS.
ANS:
DEMOGRAPHICS
TECHNOLOGY
COMPETITION
SOCIAL CHANGE
ECONOMIC CONDITIONS
POLITICAL AND LEGAL FACTORS
PTS: 1
REF: 89
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 04-1
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
2. WHAT IS ENVIRONMENTAL SCANNING? GIVE AN EXAMPLE OF AN OPPORTUNITY AND A THREAT
THAT ENVIRONMENTAL SCANNING MIGHT IDENTIFY FOR A SUNTAN LOTION COMPANY.
ANS:
ENVIRONMENTAL SCANNING OCCURS WHEN A COMPANY CREATES A TEAM OF SPECIALISTS TO
CONTINUALLY COLLECT AND EVALUATE ENVIRONMENTAL INFORMATION. THIS PROCESS ALLOWS
MARKETING MANAGERS TO UNDERSTAND THE EXTERNAL ENVIRONMENT SO THAT PLANS FOR
THE FUTURE CAN BE MADE. THE OBJECTIVE OF GATHERING ENVIRONMENTAL DATA IS TO
IDENTIFY FUTURE MARKET OPPORTUNITIES AND THREATS.
THREATS THAT MIGHT BE IDENTIFIED FOR A SUNTAN LOTION COMPANY INCLUDE FEAR OF SKIN
CANCER BY SUNBATHERS, OTHER HEALTH CONCERNS, OR LACK OF LEISURE TIME TO SPEND IN
THE SUN. OPPORTUNITIES MIGHT INCLUDE THE NEED FOR SUN-BLOCKERS, WATERPROOF
FORMULAS, OR CHILDREN'S SKIN PROTECTION PRODUCTS. ANOTHER OPPORTUNITY MIGHT BE THE
STATUS ELEMENT ASSOCIATED WITH A TAN.
PTS: 1
REF: 89
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 04-1
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
3. LIST AND DESCRIBE THE FOUR BASIC VALUES THAT HAVE STRONGLY INFLUENCED AMERICAN’S
ATTITUDES AND LIFESTYLES.
ANS:
SELF-SUFFICIENCY. EVERY PERSON SHOULD STAND ON HIS OR HER OWN TWO FEET.
UPWARD MOBILITY. SUCCESS WOULD COME TO ANYONE WHO GOT AN EDUCATION, WORKED
HARD, AND PLAYED BY THE RULES.
WORK ETHIC. HARD WORK, DEDICATION TO FAMILY, AND FRUGALITY WERE MORAL AND
RIGHT.
CONFORMITY. NO ONE SHOULD EXPECT TO BE TREATED DIFFERENTLY FROM EVERYBODY
ELSE.
PTS: 1
REF: 90
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 04-3
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
4. WHAT IS A COMPONENT LIFESTYLE? DESCRIBE HOW A COLLEGE STUDENT FOLLOWS A
COMPONENT LIFESTYLE. USE SPECIFIC EXAMPLES.
ANS:
COMPONENT LIFESTYLES MEAN THAT U.S. CITIZENS ARE CHOOSING PRODUCTS AND SERVICES
THAT MEET DIVERSE NEEDS AND INTERESTS RATHER THAN CONFORMING TO TRADITIONAL
STEREOTYPES. COMPONENT LIFESTYLES INCREASE THE COMPLEXITY OF CONSUMERS' BUYING
HABITS.
ALTHOUGH THE STEREOTYPICAL STUDENT ADOPTS A "STUDENT LIFESTYLE" AND MAKES
PURCHASES RELATED TO THIS LIFESTYLE (TEXTBOOKS, SCHOOL SUPPLIES, PIZZAS, AND SO ON),
EACH STUDENT MAY ALSO PURCHASE ACCORDING TO ALTERNATIVE LIFESTYLES. THESE MAY
INCLUDE HOBBIES, OUTSIDE JOBS, A FAMILY SITUATION, OR OTHER INTERESTS. THE STUDENT
MAY ALSO BE A GOURMET COOK, FITNESS ENTHUSIAST, SKIER, OR COMPUTER BUFF.
PTS: 1
REF: 93
COMMUNICATION
KEY: CB&E MODEL CUSTOMER
OBJ: 04-2
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
5. COMPARE AND CONTRAST GENERATION Y AND GENERATION X. WHICH GENERATION IS OF
MORE INTEREST TO MARKETERS? WHY?
ANS:
GENERATION Y WERE BORN BETWEEN 1979 AND 1994 AND ABOUT 75 MILLION STRONG, WHICH
IS ALMOST TWICE AS LARGE AS GENERATION X. MOST GEN YERS ARE THE CHILDREN OF BABY
BOOMERS AND ARE DESCRIBED AS IMPATIENT, FAMILY-ORIENTED, INQUISITIVE, OPINIONATED,
DIVERSE, TIME MANAGERS, “STREET SMART,” QUICK SHOPPERS, WANTING FULFILLMENT, AND
MULTITASKERS. THEY CARE ABOUT THE ENVIRONMENT AND WILL OFTEN SEEK OUT “GREEN”
PRODUCTS. GENERATION X - PEOPLE BORN BETWEEN 1965 AND 1978 - CONSISTS OF 40 MILLION
CONSUMERS. GEN XERS WERE THE FIRST GENERATION OF LATCHKEY CHILDREN AND HAVE BEEN
BOMBARDED BY MULTIPLE MEDIA SINCE THEY WERE BABIES, SO THEY ARE SAVVY AND CYNICAL
CONSUMERS. THEY ARE OLDER THAN GEN YERS AND ARE REACHING THE AGE WHERE THEY ARE
SENDING THEIR KIDS OFF TO COLLEGE. GEN XERS HAVE BEEN LARGELY IGNORED DUE TO THE
LARGER BABY BOOMER AND GEN YERS GETTING MARKETERS’ ATTENTION.
BOTH GENERATIONS ARE IMPORTANT TO MARKETERS, BUT THE SIZE OF GEN Y MAKES THEM
ATTRACTIVE. HOWEVER, GEN XERS ARE AVID BUYERS OF THE LATEST CLOTHES, TECHNOLOGY,
AND RECREATIONAL PRODUCTS.
PTS: 1
REF: 98-101
COMMUNICATION
KEY: CB&E MODEL CUSTOMER
OBJ: 04-3
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
6. DESCRIBE SOME BASIC CHARACTERISTICS OF THE AFRICAN AMERICAN MARKET.
ANS:
THE AFRICAN AMERICAN MARKET IS YOUTHFUL AND INCREASINGLY MORE AFFLUENT. AFRICAN
AMERICANS ARE NEARLY SIX YEARS YOUNGER THAN ALL CONSUMERS. BLACK HOUSEHOLDS
MAKING MORE THAN $75,000 ANNUALLY HAVE INCREASED 47 PERCENT IN THE LAST FIVE
YEARS—1.5 TIMES AFTER THAN THE GENERAL POPULATION. IF CURRENT TRENDS CONTINUE, BY
2015 MORE THAN HALF OF ALL BLACK AMERICANS WILL LIVE IN THE SUBURBS. AND ALTHOUGH
THEIR POPULATION IS SMALLER, THERE ARE MORE AFRICAN AMERICAN HOUSEHOLDS IN THE
U.S. THAN HISPANIC HOUSEHOLDS, BECAUSE THE LATTER TEND TO HAVE LARGER FAMILIES.
PTS: 1
REF: 105
COMMUNICATION
KEY: CB&E MODEL CUSTOMER
OBJ: 04-3
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
7. ONE COMPONENT OF THE EXTERNAL ENVIRONMENT MARKETING MANAGERS MUST UNDERSTAND
AND REACT TO IS THE ECONOMIC ENVIRONMENT. BRIEFLY DESCRIBE THE FOUR ECONOMIC AREAS
OF GREATEST CONCERN TO U.S. MARKETERS AND THE MARKETING IMPLICATIONS OF TRENDS IN
THESE FOUR AREAS.
ANS:
CONSUMERS’ INCOMES. INCOMES ARE RISING IN THE UNITED STATES, PRIMARILY DUE TO
DUAL-INCOME FAMILIES. INCREASES IN DISPOSABLE AND DISCRETIONARY INCOME ALLOW
FAMILIES AND INDIVIDUALS TO AFFORD THE "GOOD LIFE." MARKETERS CAN NOW CONCENTRATE
EFFORTS ON HIGHER-QUALITY, HIGHER-PRICED GOODS AND SERVICES.
PURCHASING POWER: THIS IS ALSO KNOWN AS THE COST OF LIVING. WHEN INCOME IS
HIGHER THAN THE COST OF LIVING, PEOPLE HAVE MORE DISCRETIONARY INCOME TO SPEND ON
NON-ESSENTIAL ITEMS.
INFLATION. IN RECENT YEARS, THE UNITED STATES HAS NOT EXPERIENCED HIGH INFLATION;
INSTEAD, PRICES DO NOT RISE QUICKLY, EMPLOYMENT LEVELS ARE HIGH, AND PURCHASING
POWER IS UP. AGAIN, THIS ALLOWS MARKETERS TO CONCENTRATE EFFORTS ON HIGHER-PRICED
GOODS AND SERVICES. DURING PERIODS OF INFLATION, MARKETERS SHOULD BE AWARE THAT
BRAND LOYALTY DECREASES AND CONSUMERS STOCK UP ON BARGAIN PRODUCTS;
CONSEQUENTLY, PRICING STRATEGIES SHOULD BE MONITORED CAREFULLY.
RECESSION. THIS PERIOD OF ECONOMIC ACTIVITY IS WHEN INCOME, PRODUCTION, AND
EMPLOYMENT FALL, WHICH REDUCES DEMAND. MARKETERS CAN COUNTER THESE EFFECTS WITH
VALUE-IMPROVED PRODUCTS, CUSTOMER SERVICE, REPLACEMENT PARTS, AND PRICE FREEZES.
PTS: 1
REF: 109-112
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 04-5
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
8. NAME AND DESCRIBE AT LEAST FIVE APPROACHES COMPANIES ARE NOW USING TO KEEP
INNOVATION STRONG.
ANS:
STUDENTS CAN NAME AND DESCRIBE ANY FIVE OF THE FOLLOWING:
BUILD SCENARIOS. SOME FIRMS USE TEAMS OF WRITERS WITH DIVERSE PERSPECTIVES TO
CREATE COMPLEX SCENARIOS OF WHAT FUTURE MARKETS MAY LOOK LIKE.
ENLIST THE WEB. SOME COMPANIES HAVE CREATED WEB SITES THAT ACT AS LITERAL
MARKETPLACES OF IDEAS. POSTERS OF CHALLENGES SOMETIMES OFFER CASH REWARDS FOR
SOLUTIONS.
TALK TO EARLY ADOPTERS: EARLY ADOPTERS TEND TO BE INNOVATORS THEMSELVES.
THEY ARE RISK-TAKERS AND LOOK FOR NEW THINGS.
USE MARKETING RESEARCH: FIND OUT WHAT CUSTOMERS LIKE AND DISLIKE ABOUT YOUR
PRODUCT—AND YOUR COMPETITORS’ PRODUCTS. FIND OUT WHAT WOULD MAKE THEIR LIVES
AND JOBS EASIER IF THEY HAD …YOUR PRODUCT.
CREATE AN INNOVATIVE ENVIRONMENT. LET EMPLOYEES KNOW THAT THEY HAVE THE
“FREEDOM TO FAIL.” WITHOUT RISK, THERE IS NO INNOVATION. CREATE INTRANETS SO PEOPLE
CAN SHARE KNOWLEDGE AND SKILLS WITHIN THE ORGANIZATION. MANAGEMENT SHOULD LEAD
BY EXAMPLE BY CREATING AN ENVIRONMENT WHERE INNOVATION IS ENCOURAGED AND
REWARDED.
CATER TO ENTREPRENEURS. CLEAR POLICIES THAT RESERVE BLOCKS OF TIME FOR
SCIENTISTS OR ENGINEERS TO EXPLORE THEIR OWN IDEAS HAVE WORKED WELL AT SOME
COMPANIES, WHICH ALLOW EMPLOYEES TO SCHEDULE A CERTAIN PERCENTAGE OF THEIR TIME
TO “PLAY,” PURSUING THEIR OWN IDEAS AND PROJECTS.
PTS: 1
REF: 113-114
OBJ: 04-6
TOP: AACSB
COMMUNICATION
KEY: CB&E MODEL RESEARCH
MSC: BLOOMS LEVEL V SYNTHESIS
9. THERE ARE SEVERAL FEDERAL LAWS THAT AFFECT MARKETING REGARDING THE COMPETITIVE
ENVIRONMENT, PRICING PRACTICES, AND FALSE ADVERTISING. NAME AND BRIEFLY DESCRIBE
THREE OF THESE FEDERAL LAWS.
ANS:
EXHIBIT 4.1 DESCRIBES THE PRIMARY U.S. LAWS THAT AFFECT MARKETING, AND STUDENTS CAN
DISCUSS ANY THREE OF THEM. THE SHERMAN ACT (1890) OUTLAWS TRUSTS, CONSPIRACIES,
RESTRAINT OF TRADE, AND MONOPOLIES. THE CLAYTON ACT (1914) OUTLAWS PRICE
DISCRIMINATION AND TYING CONTRACTS. THE FEDERAL TRADE COMMISSION ACT (1914)
CREATED THE FTC TO DEAL WITH ANTITRUST MATTERS AND OUTLAWS UNFAIR METHODS OF
COMPETITION. THE LANHAM ACT OF 1946 IS THE UNITED STATES' PRIMARY TRADEMARK
LEGISLATION. THE CELLER-KEFAUVER ANTIMERGER ACT PREVENTS CORPORATE ACQUISITIONS
THAT REDUCE COMPETITION. THE HART-SCOTT-RODINO ACT REQUIRES LARGE COMPANIES TO
NOTIFY THE GOVERNMENT OF THEIR INTENT TO MERGE. THE ROBINSON-PATMAN ACT (1936)
PROHIBITS CHARGING DIFFERENT PRICES TO DIFFERENT COMPETING BUYERS AND REQUIRES
SELLERS TO MAKE SERVICES/ALLOWANCES AVAILABLE TO ALL PURCHASERS ON A
PROPORTIONATELY EQUAL BASIS. ALSO, THE CLAYTON ACT OUTLAWS DISCRIMINATION IN
PRICES TO DIFFERENT BUYERS. THE WHEELER-LEA AMENDMENT TO THE FTC ACT (1938)
BROADENS FTC POWERS AND OUTLAWS FALSE AND DECEPTIVE ADVERTISING.
PTS: 1
REF: 116-117
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 04-7
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
10. WHAT IS THE CPSC? HOW DOES IT AFFECT MARKETING?
ANS:
THE CONSUMER PRODUCT SAFETY COMMISSION (CPSC) IS A FEDERAL REGULATORY AGENCY
THAT DIRECTLY AFFECTS THE MARKETING ENVIRONMENT. THE SOLE PURPOSE OF THE CPSC IS
TO PROTECT THE HEALTH AND SAFETY OF CONSUMERS IN AND AROUND THEIR HOMES. THE
COMMISSION HAS THE POWER TO PRESCRIBE MANDATORY SAFETY STANDARDS FOR ALMOST ALL
PRODUCTS CONSUMERS USE. THE CPSC HAS THE POWER TO BAN DANGEROUS PRODUCTS FROM
THE MARKETPLACE AND LEVY HEAVY FINES ON OFFENDING FIRMS. MARKETERS SHOULD BE
AWARE OF THE HEALTH AND SAFETY NEEDS OF CONSUMERS WHEN MAKING AND DISTRIBUTING
PRODUCTS.
PTS: 1
REF: 118
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 04-7
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
11. NAME AND DESCRIBE AT LEAST FIVE WAYS THAT THIEVES CAN STEAL AN IDENTITY.
ANS:
STUDENTS CAN NAME ANY FIVE OF THE FOLLOWING:
DUMPSTER DIVING. THIEVES RUMMAGE THROUGH TRASH LOOKING FOR BILLS OR OTHER
PAPER WITH YOUR INFORMATION ON IT.
SKIMMING. THIEVES STEAL CREDIT CARD NUMBERS BY USING A SPECIAL STORAGE DEVICE
WHEN PROCESSING YOUR CARD.
PHISHING. THIEVES PRETEND TO BE FINANCIAL INSTITUTIONS OR COMPANIES AND SEND SPAM
OR POP-UP MESSAGES TO GET YOU TO REVEAL YOUR PERSONAL INFORMATION.
CHANGING YOUR ADDRESS. THIEVES DIVERT YOUR BILLING STATEMENTS TO ANOTHER
LOCATION BY COMPLETING A CHANGE-OF-ADDRESS FORM.
OLD-FASHIONED STEALING. THIEVES STEAL WALLETS AND PURSES; MAIL; CREDIT OFFERS;
AND NEW CHECKS OR TAX INFORMATION. THEY STEAL PERSONAL RECORDS OR BRIBE
EMPLOYEES WHO HAVE ACCESS.
PRETEXTING. THIEVES USE FALSE PRETENSES TO OBTAIN YOUR PERSONAL INFORMATION
FROM FINANCIAL INSTITUTIONS OR OTHER SOURCES BY POSING AS, FOR EXAMPLE, RESEARCHERS.
XXXXX
PTS: 1
REF: 120-121
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 04-7
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
12. DESCRIBE THE COMPETITIVE ENVIRONMENT FOR A LOCALLY-OWNED COFFEEHOUSE IN YOUR
COLLEGE COMMUNITY.
ANS:
THE COMPETITIVE ENVIRONMENT ENCOMPASSES ALL THE COMPETITORS A FIRM MUST FACE, THE
RELATIVE SIZE OF THE COMPETITORS, AND THE DEGREE OF INTERDEPENDENCE WITHIN THE
INDUSTRY. TO ANSWER THIS QUESTION, STUDENTS WILL NEED TO TAKE A BROAD LOOK AT THE
COMPETITION FOR THE CONSUMERS' COFFEE DOLLARS, INCLUDING BUT NOT LIMITED TO FASTFOOD FRANCHISES, VENDING MACHINES, AND CONVENIENCE STORES. THE COMPETITION IS
LARGE, BUT FRAGMENTED INTO MANY SMALL UNITS THAT ALL OPERATE INDEPENDENTLY FROM
EACH OTHER WHILE STILL TRYING TO ATTRACT SIMILAR TARGET MARKETS.
PTS: 1
REF: 121-122
COMMUNICATION
KEY: CB&E MODEL STRATEGY
OBJ: 04-8
TOP: AACSB
MSC: BLOOMS LEVEL V SYNTHESIS
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