Chapter 03 Scanning the Marketing Environment
Student: ___________________________________________________________________________
1. With more individuals wanting tools for obtaining information, offering opinions, and interacting
with friends, Facebook was influenced by which major force?
A. social
B. technological
C. economic
D. competitive
2. As the cost of wireless connectivity, Internet service, and smartphones declined, social
networking became affordable for consumers around the world. Facebook has leveraged this
__________ force.
A. social
B. technological
C. economic
D. competitive
3. Facebook has faced significant scrutiny from many privacy regulators since its creation, including
from Canada's Privacy Commissioner, which forced Facebook to undergo numerous account
changes to make controlling your privacy settings easier. Facebook was influenced by which
force?
A. regulatory and legal
B. economic
C. technological
D. social
4. Bell Canada frequently commissions numerous studies of the market to gather information on
events outside the organization and learn and interpret any trends. Bell is engaging in which
activity?
A. Outsourcing
B. Competitive intelligence gathering
C. Company protection
D. Environmental scanning
5. A company engaged in environmental scanning is:
A. taking into account the effect its marketing activities can have on plants and animals in our
environment.
B. continually acquiring information on events occurring outside the organization to identify and
interpret potential trends.
C. maintaining a time constant horizon in its strategic planning process.
D. maintaining retail customer databases.
6. Changes in the marketing environment are a source of _______ and _______ to be managed.
A. strengths; weaknesses
B. opportunities; threats
C. competitive advantage; competition
D. income; growth
7. A company that experiences truncated future growth when launching a new product, may have
failed to initially engage in:
A. Environmental scanning
B. Competitive intelligence gathering
C. Company protection
D. Business modeling
8. A marketing manager for Foster Parent's Plan of Canada reads in Macleans that despite the
Internet and television, Canadians are actively engaged in their communities. Over fifty percent
have performed volunteer work and almost 80 percent have donated money to charities. She
asks research and development personnel to identify possible new ad campaigns that will
encourage this high levels of community-connectedness to continue. This ad campaign change is
the result of the managerial activity:
A. ecological/technological forecasting.
B. environmental scanning.
C. macroeconomic analysis.
D. strategic planning.
9. A marketing manager for United Way reads in a business journal that despite the Internet and
television, North Americans are actively engaged in their communities. 54 percent have
performed volunteer work and 78 percent have donated money to charities. She asks research
and development personnel to identify possible new ad campaigns that will encourage this high
levels of community-connectedness to continue. This ad campaign change is the result of the
managerial activity:
A. ecological/technological forecasting.
B. environmental scanning.
C. macroeconomic analysis.
D. strategic planning.
10. Statistics Canada revealed that coffee consumption in Canada has risen to over 90 litres. Sports
drinks, energy drinks, and bottled water all saw increases in consumption as well. But tea and
soft drink consumption actually declined. This type of information is the result of:
A. ecological/technological forecasting.
B. environmental scanning.
C. macroeconomic analysis.
D. strategic planning.
11. Which of the following statements regarding environmental scanning is most accurate?
A. Environmental scanning changes the marketing environment.
B. Environmental scanning identifies and interprets potential trends.
C. Environmental scanning should be done at least every five years.
D. Environmental scanning focuses primarily on geographical factors.
12. The United Way of Canada found in a recent survey that more individuals were planning on
volunteering their time in 2014, than they did in 2013. This survey is an aspect of:
A. social needs forecasting.
B. transactional exchange.
C. macroeconomic analysis.
D. environmental scanning.
13. You are the Director of Marketing for Starbucks. You are doing an environmental scan to help you
create a three-year marketing plan for the Canadian market. Which of the following environmental
trends should you consider the MOST important?
A. Coffee consumption in Canada has risen to over 90 litres.
B. By the year 2012, baby boomers will control more than 65 percent of all consumer
expenditures.
C. The largest cities in Canada have all seen a rise in dual-income couples who bring with them
larger disposable incomes.
D. By the year 2013, robotics will play a major role in North American society.
14. Boston Consulting Group is giving a presentation to one of their clients and highlights different
trends that are affecting the business environment. They conclude that all of the following are
environmental trends that typically arise from each of the following sources except:
A. economic forces
B. technological forces
C. competitive forces
D. managerial forces
15. You are in charge of the marketing program for a consumer electronics company. You have been
asked to think about developing a plan that will allow the firm to grow sales by at least 10 percent
each year for the next five years. Prior to developing these plans you should engage in which of
the following processes?
A. ecological/technological forecasting.
B. macroeconomic analysis.
C. environmental scanning
D. strategic planning.
16. As a consultant with Accenture, you frequently engage in environmental scanning on behalf of
your clients. Which of the following statements about environmental scanning best describes
what actually happens?
A. Environmental scanning changes the marketing environment.
B. Environmental scanning focuses primarily on geographical and meteorological factors.
C. Environmental scanning is an annual event.
D. Environmental scanning identifies and explains potential trends.
17. According to one of the world's largest publishers, it was unprepared for recent increases in the
demand for books about security. To prepare for the shift in demand, the publisher should have
engaged in:
A. tracking environmental trends as a part of its ongoing operation
B. noticing changing demographics
C. noticing changes in ethnic composition
D. shifting funds from its product development department
18. A manufacturer of major appliances uses environmental scanning and identifies various trends.
Which of the following trends might be more relevant to this manufacturer's success in terms of
product development?
A. the growth in electronic commerce.
B. advances in biotechnology, cosmetic surgery, and cancer drugs.
C. new legislation related to digital copyright, intellectual property protection, and consumer
privacy.
D. eco-consciousness.
19. Responding to the movement towards reducing our carbon footprint, the federal government
recently made financial incentives available to Canadians who made their homes more energyefficient. According to an environmental scan of Canada, this growth in eco-consciousness
reflects a change in _____ forces.
A. economic
B. competitive
C. technological
D. social
20. Use of Facebook has grown significantly in developing countries over the last couple of years as
internet and smartphone connectivity has increased as well in these countries. This rising trend is
an example of _____ forces.
A. economic
B. competitive
C. technological
D. social
21. Sir Galahad's is a high-fashion boutique selling top-of-the-line men's clothing and accessories.
The keys to Sir Galahad's success include knowing men's changing fashion tastes and providing
something different from other clothing retailers. In addition, because of the high value of the
merchandise, Sir Galahad's management is searching for information on available computerized
inventory controls and sales order processing. From this description, one can infer that the
environmental category of least importance to Sir Galahad's is:
A. regulatory.
B. economic.
C. technological.
D. social.
22. Shoppers Drug Mart has been opening an increasing number of stores in areas where the ‘baby
boomer' generation makes up a large proportion of the population. Which force is likely playing a
factor in these decisions?
A. ecology.
B. macroeconomic conditions.
C. regulatory forces.
D. social forces.
23. You are the Director of Marketing for Starbucks. You are doing an environmental scan to help you
create a three-year marketing plan for increasing your presence in Canadian post-secondary
institutions. Which of the following environmental trends should you consider the MOST
important?
A. Consumption of coffee by 18- to 24-year-olds is now at a record high.
B. By the year 2012, baby boomers will control more than 65 percent of all consumer
expenditures.
C. The largest cities in Canada have all seen a rise in dual-income couples who bring with them
larger disposable incomes.
D. Coffee consumption in Canada has risen to over 90 litres.
24. The local City Hall is assessing the need to build an additional community centre in the town. To
be successful, they need to understand demographic shifts in the population and various cultural
changes in their community. The City will be most concerned with which force?
A. ecology.
B. macroeconomic conditions.
C. regulatory forces.
D. social forces.
25. Changes in social forces can have a dramatic impact on a marketing strategy, some of these
social forces in the environment include the demographic characteristics of the population, and
it's _____.
A. living standards
B. social class
C. values
D. dialect
26. A magazine that appeals to single parents has noticed an increase in monthly subscription sales
over the last several years. After completing their environmental scan, they attribute this increase
to a change in which force in the marketing environment?
A. economic
B. competitive
C. technology
D. social
27. More magazine is a new publication designed to appeal to women over the age of 40. Demand
for such magazines is an example of how changing _____ characteristics impact the marketing
environment.
A. cultural
B. behavioural
C. occupational
D. demographic
28. By 2011, the Canadian population is estimated to be 34 million; by 2050, it is expected to be 43
million and even more ethnically diverse. This demographic information is part of which
environmental factor?
A. social
B. technological
C. regulatory
D. economic
29. The United Way of Canada is constantly monitoring different social forces in the marketing
environment. Which statement below most accurately relates to social forces?
A. empower workers to improve their performances.
B. usually have little impact on marketing strategy.
C. include reduced emphasis on trade regulation.
D. include demographics and values.
30. Per capita income ranges from $115,000 in Luxembourg, to $50,000 in Canada, to $600 in
Afghanistan. Per capita income is a component of which environmental category?
A. cultural
B. behavioural
C. occupational
D. demographic
31. The fastest growing population segment in Canada was born between 1946 and 1964. This
segment is known as:
A. generation X
B. baby boomers
C. generation Y
D. mid-millenials
32. Michael is recently divorced and has two children. He moves in with Leanne, also a recent
divorcee who has one child. How is this new family structure classified?
A. Brady Bunches
B. Blended families
C. Merged families
D. Hallmark families
33. Over 50 percent of the Canadian population is located in just the top 10 CMAs in the country,
which include such cities as Toronto, Montreal, Vancouver, Ottawa, Calgary, and Edmonton. In
this instance, CMAs stands for:
A. Canadian metropolitan area
B. Census metropolitan area
C. Certified metropolitan area
D. Canadian market area
34. Walmart decides to run two different ads in Toronto, Ontario. One, in a predominant Chinese
market, is written in Chinese; the other, in a large Italian area, is written in Italian. Walmart is
engaging in what type of marketing?
A. discriminatory marketing
B. micromarketing marketing
C. social marketing
D. ethnic marketing
35. In many Inuit communities in Northern Canada, elders pass on values, ideas, and attitudes
through stories and songs to members of their generational family. These items that are learned
and shared among members of a group are collectively known as:
A. culture
B. ethnicity
C. pychographics
D. ethnographics
36. A day care conducted a survey and found that 60 percent of Canadian women work outside the
home and are no longer home to watch children that are too young for school. The day care
offers a special that says: "Heading back to work after maternity leave? Leave the kid watching
up to us!" The day care is taking advantage of which trend?
A. competitive trend
B. family trend
C. regulatory trend
D. cultural trend
37. Kraft Canada launched a specific microsite for new Canadians who recently arrived from South
Asia, called Kraft Ka Khana. As a multicultural marketer, Kraft can do many of the following
examples of things to engage with a diverse audience, except ________.
A. start to customize, not generalize
B. build a relationship with your ethnic Canadian customers. Acknowledge them as Canadians
while respecting them for being different in their culture and value systems
C. build stereotypes
D. spend your resources in gaining knowledge of these ethnic markets, including good field
research
TB Figure 1
38. According to TB Figure 1 above, by the year 2050, which age group is projected to account for
most of the world's population?
A. 0-14
B. 15-59
C. 60-69
D. 70-79
39. According to TB Figure 1 above, in 2005 the approximate size of the world population of those
aged 0-14 was
A. 5.5 billion
B. 4 billion
C. 1.5 billion
D. 1 billion
40. According to TB Figure 1 above, in what year will the population totals for people under 14 and
people over 60 be relatively the same?
A. Sometime in the 1950s
B. Sometime in the 1990s
C. In the year 2008
D. Sometime in the 2040s
41. Which generational cohort is the Samsung ad in TB Figure 2 below most likely trying to reach?
TB Figure 2
A. Generation X
B. Baby boomers
C. Generation Y
D. The baby bust generation
42. The generation of children born to baby boomers, a period of increasing births, is sometimes
referred to as a(n):
A. baby boomer
B. baby buster
C. boomerang
D. echo-boom
43. HSBC Bank International Ltd. (Europe's largest bank) selected its advertising agency because
that agency was "always sensitive to the possibility that something might not translate well or may
offend superstitions about colours or numbers." Its advertising agency was responsive to
A. psychographic differences.
B. population shifts.
C. racial and ethnic diversity.
D. a value consciousness.
44. Anya has been instructed to prepare a short paper on her ancestry. She has asked some friends
to explain the topic to her. Which of the following statements offers the BEST explanation?
A. She is supposed to write about her family's customs.
B. She is supposed to describe the personalities in her family.
C. She is supposed to write about the ethnic composition of her family.
D. She is supposed to write about any geographical shifts her family has made and how it
changed them.
45. When assessing the viability for a new store location, Starbucks will review the population
distribution, income, and occupation of those residents that inhabit each area. Which item below
is Starbucks most concerned with?
A. cultural census
B. psychographics
C. social audit
D. demographics
46. Environmental scans have shown that the population of Canada is undergoing dramatic change.
For example, the number of people in this country who are between the ages of 20 and 34 has
declined since 1990. On the other hand, the number of people who are 65 years of age or older
has increased. These changes in the Canadian population are examples of _____ changes to
which marketers must respond.
A. cyclical population
B. psychographic
C. demographic
D. situational segment
47. A new travel company decides to launch a ‘concierge-style' travel service that organizes
everything from pick-up at home, transport to the airport, and all the little aspects of the
subsequent trip, such as transportation and meals. Further, they have selected all of the hotels to
be wheelchair- and walker- friendly. Who is the likely target market for this travel company?
A. infants.
B. people over 50 years of age.
C. children of baby boomers.
D. teens.
48. By 2050, the median age in Canada will increase by almost:
A. 2 years.
B. 4 years.
C. 5 years.
D. 9 years.
49. Toyota Canada recently developing a spin-off company to develop and market a new brand of
vehicles called Scion to appeal to the Generation Y group, while still marketing their traditional
brands, such as the Toyota Camry, to the baby boomers is an example of:
A. age cohort marketing.
B. generational marketing.
C. chronological automobile marketing.
D. ageist marketing.
50. Since the mid-1970s, there has been a major shift in the Canadian population from rural to urban
areas. In fact, more than _______ of Canadians are urban dwellers.
A. 60%
B. 70%
C. 80%
D. 90%
51. The principal source of growth in the Canadian population will be from:
A. an increasing birth rate.
B. an increasing rate of multiple births (twins, triplets etc.).
C. emigration.
D. immigration.
52. The Government of Canada recently completed a population census. Their findings indicate that
generally, the population of Canada is becoming:
A. younger and more diverse.
B. older and more diverse.
C. younger and less diverse.
D. older and less diverse.
53. When individuals publish information on social networking sites, such as Facebook, Twitter, or
Google+, they are generating what type of content?
A. user-generated content
B. self-published content
C. social media content
D. self-generated content
54. Why might a new company decide to target baby boomers, as opposed to Generation X?
A. include most of the important business leaders in Canada.
B. represent a small proportion of the population but have large disposable incomes.
C. have the longest life expectancies, and therefore, they will remain active in the market place
for the longest period of time.
D. have experienced increased earnings and they account for the majority of consumer product
purchases.
55. While watching the recent election or SuperBowl, a Twitter hashtag was superimposed at the
bottom of the television screen, encouraging viewers to tweet their thoughts about the event.
Considering that 65 percent of Canadians are also using this space for accessing the internet and
using various gadgets, experts are referring to this shift as the new:
A. digital living room
B. internet space
C. digital domain
D. internet domain
56. Which of the following statements about baby boomers is NOT true?
A. Baby boomers account for the majority of the purchases in most consumer product and service
categories.
B. Generally, baby boomers are receptive to anything that makes them look and feel younger.
C. Baby boomers will change their buying behaviour to reflect concern about their children and
future retirement issues.
D. With advances in modern medicine, the aging baby boomer group is experiencing less agerelated health problems.
57. Drug companies promoting pharmaceutical products designed to address incontinence and
erectile dysfunction vie for a share of this growing market in attempting to lure _______.
A. echo-boom members
B. baby boomers
C. members of Generation Y
D. Generation Xers
58. Marketers are activating traditional ‘static' messaging and products by employing which mobile
technology to engage consumers?
A. QR Codes
B. foursquare
C. Facebook
D. Twitter
59. ‘Survivor' has been a very popular television show. It shows a group of sixteen strangers being
placed in two competitive teams of eight. Each team must survive in a natural environment that is
harsh and demanding. A reviewer described one of the teams in Survivor Africa as being baby
boomers versus Generation X. What do you infer from this statement?
A. The reviewer was surprised that baby boomers and members of Generation X were not
cooperating because they usually do.
B. That people over the age of 50 will more than likely conflict with people born after 1980.
C. Baby boomers want the same things as Generation X members; this caused the conflict
between them.
D. This behaviour was to be expected because baby boomers and members of Generation X are
typically very different from each other.
60. When a local coffee shop launches a new mobile version of their traditional website that can be
found using a mobile phone, the coffee shop recognizes the importance of:
A. mobile marketing
B. easy-to-read font
C. user-generated content
D. e-marketing
61. Mobile marketing is perhaps the core emerging digital platform for marketers because more than
____ million Canadians have mobile phones.
A. 16
B. 21
C. 26
D. 31
62. Search-Engine Optimization (SEO) refers to the concept of:
A. using various techniques to move your content to the top of the first page
B. using various techniques to keep your content confidential
C. ensuring your newsletters do not end up in someone's spam email box
D. mass marketing
63. Bernadin Canning products recently launched a new home canning, jarring, and preserving DIY
kit. Which consumer group is likely to be the target of this traditional activity?
A. Generation X
B. Generation Y
C. Baby boomer
D. A liberal cohort
64. When compared to baby boomers, members of Generation X:
A. save, plan for retirement and take advantage of retirement plans much earlier.
B. are less demanding as consumers.
C. are more extravagant.
D. account for a higher percentage of purchases of consumer products.
65. When the maker of a popular mobile search application utilizes gesture, touch, and voice in a way
to mimic how we operate day-to-day, the application maker recognizes which of the following
rising trends?:
A. natural user interfaces
B. smartphones
C. digital living room
D. predominance of Gen Y members to have a smartphone
66. How are Generation Y members likely to view wireless communication?
A. critical aspect to their lives
B. a learned concept, because they remember when there was no wireless communication
C. something of the past
D. something they are still learning
67. The average Canadian family size is about:
A. 2 persons.
B. 3 persons.
C. 4 persons.
D. 5 persons.
68. Which of the following statements accurately describes a recent trend in the Canadian family?
A. About 50 percent of all first marriages end in divorce.
B. There is an increase in traditional families.
C. Nearly one-half of all households now consist of people who live alone.
D. About 20 percent of all marriages end in divorce.
69. Which major demographic factor most likely accounts for a step-parent purchasing one of
Hallmark's specially-designed cards and verses?
A. changes in the Canadian family structure
B. the baby boom
C. geographic shift
D. population trends
70. Over the last three years a local homebuilder has received an increasing number of requests that
ask for the home to include several living areas for extended family members staying long term.
The major driver of this shift is:
A. changes in the Canadian family structure
B. the baby boom
C. geographic shift
D. population trends
71. When Holiday Inn decided to create a new version of their traditional hotel chain called Holiday
Inn Express, they recognized that consumers were concerned about obtaining the best quality for
a given price. This concept is known as:
A. price matching
B. value consciousness
C. value purchase
D. value business model
72. Lawyers often joke that they will never run out of business because of the increase in blended
families. This is because ____ percent of all first marriages in Canada end in divorce?
A. 25
B. 30
C. 50
D. 65
73. Marketers are using social media to engage different ethnic groups because it allows for
customization of the messages, images, and languages used. This is important because by 2031,
it is estimated that _____ percent of the Canadian population will be part of an ethnic group.
A. 21
B. 31
C. 41
D. 51
74. Developing marketing plans to reflect the unique attitudes, ancestry, communication preferences,
and lifestyles of ethnic Canadians is called ______.
A. trend marketing
B. ethnic marketing
C. target marketing
D. local marketing
75. Since the mid-1970's, the major shift in Canadian population has been:
A. from urban to rural areas.
B. from rural to urban areas.
C. from western to eastern provinces.
D. from north to south.
76. Which of the following does NOT constitute one of Canada's top 10 major CMA urban regions
which in total account for over 50 percent of the Canadian population?
A. Toronto
B. Edmonton
C. Calgary
D. Saskatoon
77. The retailer Target decided to open their first twenty stores in Canada in all markets that have a
population of 100 000 or more, Target was focused on _____________ areas.
A. census municipal
B. regional marketing
C. census metropolitan
D. micropolitan statistical
78. Marketers can now reach large segments of the Canadian population efficiently and effectively
because:
A. most Canadians are located outside of four major urban regions
B. since the 1970s there has been a major shift in the Canadian population from urban to rural
centres
C. the top 10 CMAs account for more than 50 percent of the Canadian population
D. more than 80 percent of Canadians are rural dwellers
79. The trend toward eco-consciousness has opened up numerous opportunities for creative
businesspeople who are often referred to as:
A. green inventors
B. green entrepreneurs
C. ecopreneurs
D. eco-inventors
80. By 2031 and shortly thereafter, visible minorities will represent the majority of the population of
________ and _________.
A. Calgary; Winnipeg
B. Toronto; St.Catharines
C. Ottawa; Halifax
D. Vancouver; Toronto
81. By 2031, visible minorities are projected to represent almost ____ percent of the Canadian
population.
A. 10
B. 20
C. 30
D. 40
82. McDonald's uses different promotional messages in different parts of Toronto, depending on the
predominant language spoken. McDonald's is likely using which strategy?
A. multicultural marketing
B. geographic marketing
C. target marketing
D. segmented marketing
83. The Canadian population is growing older, becoming more ethnically diverse, and increasingly
living in nontraditional families. Marketers must observe how _____ forces are affecting the
marketing environment.
A. competitive
B. regulatory
C. geographical
D. social
84. HSBC Bank (formerly the Hong Kong Bank of Canada) selected its advertising agency because
that agency was "always sensitive to the possibility that something might not translate well or may
offend superstitions about colours or numbers." Its advertising agency was responsive to:
A. psychographic differences.
B. population shifts.
C. culture and ethnic diversity.
D. a value consciousness.
85. The Mutual Bank of Hong Kong selected its advertising agency because that agency was "always
sensitive to the possibility that something might not translate well or may offend superstitions
about colours or numbers." This is an example of how _____ forces affect marketing.
A. social
B. technological
C. economic
D. competitive
86. The increase in immigration to Canada is likely to result in a firm's ____________ playing a larger
role in marketing.
A. ethnic marketing plans
B. multicultural products
C. immigration strategy
D. product development
87. When a local merchant issues several different ads, each in a different language, and distributed
to different areas of the community, they recognize the importance of:
A. Ethnic marketing
B. Functional marketing
C. Psychographic marketing
D. Cultural segmentation
88. In an interview, a potential candidate asked the hiring manager: "What is the culture like at your
organization?" In a sense, the candidate was trying to learn about the _________ of the
organization.
A. values, ideas, and attitudes
B. attitudes, ancestry, lifestyles
C. attitudes, ancestry, communication preferences
D. religious beliefs
89. When a local gift shop creates an online "gift" for the mobile game CityVille that users can
purchase and play with online, this is an example of:
A. mobile marketing
B. the interaction between real life and virtual worlds
C. social media marketing
D. gift-exchange marketing
90. Many Canadian consumers, particularly working women, are living harried lives and want to do
business with companies that can offer them greater convenience. Many businesses are
responding by offering express lanes of checkouts, longer store hours, drive-through windows,
delivery services, and electronic shopping. These businesses are responding to customers
experiencing:
A. chronological destitution.
B. time poverty.
C. job burnout.
D. role stress.
91. TD Bank has recognized the trend of consumers experiencing time poverty, and has
implemented numerous strategies except:
A. offering express lanes for business
B. having longer opening store hours
C. having drive-through windows
D. having only one receptionist working at a time
92. Sobeys Inc., a major supermarket, offers its shoppers the convenience of one-stop shopping,
including groceries, in-store pharmacies, wellness centres, and banking services. In this way,
they are able to reach those who are ________________.
A. wealthy
B. of various ethnic backgrounds
C. making routine purchase decisions
D. time poor
93. Responding to consumer demand for value, Sobeys offers a line of products that come with a
low-price guarantee. In this way, they are able to reach those who are ________________.
A. wealthy
B. of various ethnic backgrounds
C. making a routine purchase decision
D. value conscious
94. Within the Canadian labour force, the number of tasks to do is expanding, while the time available
to do them is shrinking. This has led to the phenomenon of ________________.
A. technology adaptation
B. time poverty
C. less holidays
D. higher wages
95. You are the marketing director for McDonald's and have observed increased sales of salads,
water, and hamburgers with no mayo on them. As a result, you decide to offer a "buy one large
salad and receive a bottle of water for free" promotion at your stores. Which environmental force
most likely has contributed to this change in dietary habits?
A. economic
B. regulatory
C. competitive
D. social
96. There is a greater concern for health and well-being in Canada. This is evidenced by:
A. increased sales of Cigar Afficionado magazine.
B. the level of fitness activity and sports participation in Canada.
C. no cannibalization in the sales of Coke relative to Diet Coke or Coke Zero.
D. the opening of a record number of Granny's Old-Fashioned Ice Cream outlets.
97. The set of values, ideas, and attitudes of a homogeneous group of people that are transmitted
from one generation to the next is called:
A. social class.
B. morals.
C. culture.
D. reference groups.
98. When a company uses different QR codes on different posters spread throughout a city, they are
able to understand which ads are more effective than others and which locations are best. This
use of technology recognizes the importance of:
A. mobile marketing
B. social media marketing
C. QR marketing
D. consumer engagement marketing
99. Holiday Inn Worldwide offers customers Holiday Inn Express hotels, which feature comfortable
accommodations with room rates lower than the traditional Holiday Inns. In this way, they are
able to reach those who are ________________.
A. wealthy
B. of various ethnic backgrounds
C. making a routine purchase decision
D. value conscious
100.Canada's major banks offer lower-interest credit cards, some with value-added enhancements,
such as frequent flyer programs and cash-back offers. In this way, they are able to reach those
who are ________________.
A. wealthy
B. of various ethnic backgrounds
C. value conscious
D. making a routine purchase decision
101.Many Canadians are purchasing LED-based light bulbs instead of the traditional incandescent
bulb. As a result, GE doubled-down on their marketing efforts for their high-end multicolour LED
bulb. GE is responding to an emerging consumer trend known as ________________.
A. going green
B. the health trend
C. value consciousness
D. time poverty
102.A Vancouver-based packaging company has created a package made from a renewable
resource called palm fibre, which composts in less than 90 days and provides a healthy
contribution to soil. In this way, they are able to reach those who are ________________.
A. wealthy
B. of various ethnic backgrounds
C. eco-conscious
D. making a routine purchase decision
103.Spending on foreign travel is up, spending on entertainment and dining outside the home is also
up, in particular, spending on ethnic foods. This illustrates another important trend in that
Canadians are becoming more ________.
A. technological
B. experiential
C. economic
D. ecological
104.A consultancy is presenting to their client about the importance of creating a friendly working
culture to increase productivity. Which of the following statements about culture is true?
A. Culture includes attitudes and values.
B. Culture is an example of an economic force within the marketing environment.
C. Because Canada is considered a "melting pot," cultural trends are typically not monitored by
businesses.
D. Culture is only considered an important facet of marketing in international marketing.
105.The change in attitudes about work, from "I live to work" to "I work to live," helps explain which of
the following?
A. population shift to urban areas
B. stable gross income
C. Safeway Stores advertising in Newsweek magazines
D. growth in sales of Blu-Ray players, sports equipment, and easily prepared meals
106.The roles of men and women in Canadian society have changed dramatically during the past
decades. For instance, more women are actively and successfully pursuing careers in both the
public and private business sectors. Women across the nation have established successful
managerial and professional positions as doctors, lawyers, and astronauts. Such changes in the
role of women in society have necessitated that marketers adjust their marketing activities. Which
of the following is NOT an example of marketing changes due to changing roles of women in the
workforce?
A. 24-hour grocery stores
B. extended banking hours
C. automatic teller machines
D. a promotional campaign by televangelist espousing the virtues of home-cooking, children
being raised at home by their mothers, and denouncing daycare services
107.Which of the following factors can be used to help explain why Generation Y women no longer
feel the need to be feminists?
A. The television industry eliminated all shows where the woman was a stay-at-home mother.
B. The movie industry stopped making films about dependent women.
C. They were able to shop freely on the Internet.
D. Their mothers worked and gave them a reference point for lifestyle choices.
108.When car manufacturers advertise that they offer the highest quality of vehicle available with all
of the most desirable features at the lowest possible price, they try to compete by appealing to
consumers'________________.
A. value consciousness
B. perceived value desires
C. focused shopping habits
D. price targeting
109.How many Canadians are considered active personal bloggers?
A. 500,000
B. 1 million
C. 2 million
D. 3 million
110.The concern for obtaining the best quality, features, and performance of a product or service for
a given price will drive consumption behaviour into the foreseeable. This is known as:
A. price consciousness
B. stinginess
C. frugality
D. value consciousness
111.Sobeys Inc., one of Canada's top food retailers, offers customers its Compliments Value brand of
products, which is a private-label brand at a lesser price. This is designed to appeal to:
A. an ethnically diverse market.
B. value conscious consumers.
C. population age shifts.
D. geographic shifts.
112.Statistics Canada reports that Canadians are consuming less sugar, less fat, and fewer calories
in their diets. Many Canadians are also drinking healthier beverages, including bottled water and
juices, instead of traditional soft drinks in response to the obesity public health threat. This
concern represents:
A. changing values.
B. change in population composition.
C. demographic change.
D. increase in value consciousness.
113.A local community league has seen a steady month-over-month increase in the number of
individuals who join their weeknight pick-up sports activities. Clearly, this community is seeing
a(n) __________ as it relates to an individual's health.
A. change in attitude
B. change in interests
C. increase in peer pressure by family members
D. increase in value consciousness
114.eBay, which allows consumers to engage in online buying and selling globally, is known as a:
A. consumer-to-consumer marketing site
B. consumer-seller direct marketing site
C. entrepreneur marketing site
D. buyer-seller marketing site
115.Which component of the marketing environment pertains to the income, expenditures, and
resources that affect the cost of running a business or household?
A. Ecology
B. The economy
C. Technology
D. Culture
116.During and immediately after a recession, most retailers see a decrease in consumer spending.
Which environmental force is most likely affected?
A. economic
B. regulatory
C. competitive
D. psychographic
117.In a 2001 survey conducted immediately after the World Trade Centre attack, 47 percent of the
women who responded to the survey said they were not going to treat themselves to small
luxuries like manicures, and 54 percent said they would not be buying any expensive clothes.
These results of this survey most directly relates to the _____ forces within the marketing
environment.
A. economic
B. regulatory
C. competitive
D. social
118.Surveys of consumer expectations are tracked over time by researchers, who ask such questions
as "Do you expect to be better off or worse off financially a year from now?" Surveyors record the
share of positive and negative responses to this question and related ones to develop an index,
sometimes called a consumer confidence or consumer sentiment index. These results of these
surveys most directly relate to the _____ forces within the marketing environment.
A. economic
B. regulatory
C. competitive
D. social
119.MJ Home Builders Inc. reviews the monthly published ‘Consumer Confidence' report, issued by
the Federal Government, as one consideration when deciding to begin building more homes.
This report would be considered an aspect of _____ forces within the marketing environment.
A. economic
B. regulatory
C. competitive
D. social
120.The total amount of money made in one year by a person, household, or family unit is known as:
A. income
B. net income
C. disposable income
D. gross income
121.As a new graduate, you made a salary of $50,000CDN; after paying taxes to use for such
necessities as food, shelter, clothing, and transportation, you have $22,000CDN left over. This
amount is known as your:
A. income
B. net income
C. disposable income
D. gross income
122.After paying taxes, living expenses, and necessities, you realize you have enough money to go
on a week-long vacation to Turks and Caicos. This money is likely coming from which account?
A. discretionary income
B. net income
C. disposable income
D. gross income
123.If a family has Royal Doulton china, Rolex watches, and Lexus automobiles, one could assume
that they have, or had:
A. income
B. net income
C. disposable income
D. discretionary income
124.Some merchants at the beginning of the 2007 Christmas season were worried consumers would
not be willing to buy as much as they had in years previously. As a result, these retailers
purchased fewer items for their inventories. Manufacturers sold less because the retailers did not
want to have as large an inventory as usual. Manufacturers had to lay people off because their
production was down, and many consumers actually did have less money to spend. This is an
example of how _____ forces directly affect marketing.
A. economic
B. social
C. regulatory
D. technological
125.Components of a consumer's income include:
A. inflation, recession, and recovery.
B. salary, wages, commissions, and fees.
C. gross, disposable, and discretionary incomes.
D. taxes, perquisites, and salary.
126.At the end of one year you made $100,000CDN, this income is known as:
A. Inflationary
B. Discretionary
C. Disposable
D. Gross
127.Tracy Smith has a disposable income of $1,600. Her disposable income represents 80 percent of
her gross income. What is her gross income?
A. $5,400
B. $3,200
C. $2,000
D. $1,600
128.The money a consumer has left after paying taxes to use for food, clothing, and shelter is known
as:
A. Net
B. Discretionary
C. Disposable
D. Household
129.In recent years, Canadians have spent a decreased portion of their disposable income for eating
out. Two factors account for this trend - the recession of the early '90s and many baby boom
households are in the midst of their child-raising years, causing increased spending on food at
home. This is an example of how _____ forces directly affect marketing.
A. economic
B. governmental
C. technological
D. social
130.When taxes rise at a faster rate than does disposable income, what must consumers do?
A. economize
B. spend more
C. go on vacation
D. retire early
131.Which product below is likely purchased using discretionary income?
A. a new watch
B. condo fees
C. grocery bill for milk
D. a new suit for work
132.Emily had an excellent year as a saleswoman in 2007. She earned $97,000. She paid $17,000
for "necessities" such as mortgage, food, and clothing. She was given a six-week all expenses
paid vacation by the company for her sales performance that had a value of $9,000. Her
provincial and federal income taxes totaled $24,000. What was her discretionary income?
A. $56,000
B. $73,000
C. $80,000
D. $88,000
133.Frank has a gross income of $24,000. He pays $4,000 in taxes. His yearly expenditures for food,
shelter, and clothes total $17,250. What is his discretionary income?
A. $2,750
B. $6,750
C. $13,250
D. $20,000
134.The owner of your local KFC franchise has had a good year with rising revenues and reduced
operating costs that resulted in a personal income of roughly $100,000. Approximately one-third
of that was taken for provincial and federal income taxes, and another third went to pay for
mortgage, car payments, food, clothing, and other necessities. What is the remaining third
called?
A. windfall
B. bonus
C. discretionary income
D. disposable income
135.Carl and Nancy Johnson prepared a household budget in an attempt to better manage their
money. As part of the budgeting process, Carl and Nancy prepared the following list:
After totaling their necessary expenses, Carl and Nancy subtracted that figure ($1965) from their
monthly income of $4500. The Johnsons were happy to realize that after paying bills each month,
they had $2535 left over. That money that was left after paying expenses is an example of their
_____ income.
A. gross
B. disposable
C. proprietary
D. discretionary
136.In 2001, the number of people who attended music concerts, plays, and other live entertainment
declined significantly because many people did not believe they had the _____ income to enjoy
such events.
A. gross
B. disposable
C. proprietary
D. discretionary
137.3M is mainly concerned with inventions or innovations from applied science or engineering
research. Therefore, they are most concerned with:
A. Science
B. Innovative theory
C. Technology
D. Cybernetics
138.As a result of fears about bioterrorism in general and anthrax in particular, envelope
manufacturers have designed an envelope with a window at the bottom edge so that a recipient
can examine the contents of the letter without having to open the envelope. This envelope is
expected to have a high level of popularity. It is an example of how _____ forces can improve the
quality of life through marketing.
A. technological
B. political
C. economic
D. ecological
139.Business experts agree that new technologies, particularly social networking sites, are enabling
marketers and, more importantly, are ________ customers.
A. enabling
B. empowering
C. exploiting
D. benefiting
140.One reason some people don't like to buy clothing from Internet retailers is the inability to know if
the clothes will fit once they have arrive at your house. ImageTwin has developed a scanning
system with which it has gathered the measurements of individuals of all different sizes. All of the
information has been fed into a database. Now, when you buy something at LandsEnd.com, you
can see a 3D image of what the item should look like on your body. If ImageTwin is successful in
promoting this product, it could have its strongest influence on the _____ forces of the marketing
environment.
A. economic
B. regulatory
C. technological
D. social
141.Which of the following statements concerning technological forces is true?
A. A new wave of technological innovation will not replace existing products and companies.
B. Because technological change is the result of research, it is highly predictable.
C. An advantage of technology is that advances can in no way harm an industry's growth.
D. Advances in technology are having important effects on marketing because they allow
marketers to better understand and serve consumers.
142.One-way satellite transmission has been used widely throughout Canada via systems like
WebTV. Consumers will have access to two-way satellite transmission, which is significantly
faster and does not require a dial-up connection. The introduction of two-way satellite
transmission will make systems like WebTV obsolete. This would be an example of how _____
forces affect the marketing environment.
A. economic
B. ecological
C. technological
D. social
143.Companies recognize that having an online presence is necessary to compete in today's
marketplace. The items that are listed near the top of a Google search are there because they
are most relevant to your keywords and likely because of _________________.
A. Viral Marketing
B. Online Search Strategy
C. Marketing Information System
D. Search Engine Optimization
144.Stephen has begun volunteering with an international aid organization. In order to share his story
with friends and colleagues back home, he posts photos online and writes a story with each one
about all of his amazing experiences internationally. This central repository of photos and stories
can best be described as a(n):
A. green marketing
B. social network
C. blog
D. online journal
145.The Hotel Association of Canada suggests that six in ten Canadians look for an environmentally
friendly hotel as part of their travel plans. This is an example of consumers':
A. sensitivity
B. activism
C. environmentalism
D. eco-consciousness
146.Air Canada patrons can go online to calculate the amount of carbon dioxide their trip will
generate and the cost to offset it, which can then be added to their ticket purchase. A trip from
Vancouver to Montreal (return), for example, would cost the flyer an extra $12.80, and this offset
amount would go to planting trees, restoring ecosystems, and assisting in green community
developments. Air Canada is capitalizing on the rising trend of the ______________________
consumer.
A. polluant free
B. sensitive
C. experienced
D. eco-conscious
147.An information and communication-based electronic exchange environment mostly occupied by
sophisticated computer and telecommunication technologies and digitized offerings is known as
a:
A. electronic communications channel
B. transactional Internet
C. marketspace
D. marketing Internet
148.Market researchers predicted that credit-card transactions on the Internet exceeded $508 billion
in 2008. This is only possible because of the:
A. electronic communications channel
B. transactional Internet
C. marketspace
D. marketing Internet
149.Buying a book at www.amazon.ca to give as a birthday present is an example of a(n) _____
transaction.
A. e-commerce
B. Internet relationship
C. bricks-and-mortar
D. electronic partnering
150.Which of the following statements about e-commerce is true?
A. the total value of e-commerce in Canada is estimated to be $50 billion
B. business-to-business makes up the bulk of transactions, as opposed to business-to-consumer
C. business-to-consumer makes up the bulk of transactions, as opposed to business-to-business
D. the total value of e-commerce in Canada is estimated to be $10 billion
151.Cisco Systems, the computer networking equipment giant communicates with its distributors,
resellers, and customers using its:
A. intranet
B. partnering software
C. extranets
D. Internet servers
152.Office Depot has developed wireless, handheld computers for its staff. When customers inquire
about a product, a computer-equipped sales associate can pull detailed information on products
right out of the corporate database. Employees at one store can contact employees at another
store for advice or information. This is an example of how _____ can be used to enhance
marketing.
A. intranets
B. partnering software
C. extranets
D. Internet servers
153.CanWest MediaWorks and Rogers Wireless have even launched a new TV-type service for
users of Blackberry devices, called BbTV. Consumers received 30- to 90-second clips from
Global TV and Rogers Sportsnet sandwiched between five-second ads. This is one way that ____
forces have jointly influenced marketers.
A. economic and technological
B. technological and competitive
C. competitive and social
D. social and technological
154.At Procter & Gamble, a Web-based information-sharing network facilitates the collection and
evaluation of new product ideas from the company's 110,000 employees. This is an example of
how _____ can be used to enhance marketing.
A. intranets
B. partnering software
C. extranets
D. Internet servers
155.A broad concept that includes all electronic-based company activities, both within and outside the
company is known as a
A. e-business
B. partnering software
C. extranets
D. Internet servers
156.The marketing component of e-commerce is also known as online marketing and:
A. e-marketing
B. partnering software
C. extranets
D. Internet servers
157.Social media has become an integral part of the lives of Canadians, with _________ people active
on Facebook.
A. one in ten
B. one in seven
C. one in five
D. one in three
158.When assessing which fast-food restaurant to eat a hamburger at, you are essentially assessing
the ____________ in the fast-food market.
A. substitute markets
B. target markets
C. mixed marketing
D. competition
159.P&G uses an online collaborative tool to discuss confidential feedback on new product ideas for
their employees spread across the country. P&G is using:
A. intranets
B. partnering software
C. extranets
D. Internet servers
160.The competition between McDonald's, Wendy's, and Burger King is known as which form of
competition?
A. Pure competition
B. Cross-market competition
C. Oligopoly
D. Monopolistic competition
161.Which of the following products would most likely be sold through pure competition?
A. vacation cruises
B. wheat
C. musical instruments
D. electricity
162.Distribution (in the sense of shipping products) is particularly important to which form of
competition?
A. cross-market competition
B. pure competition
C. oligopoly
D. monopolistic competition
163.Paul Avery is a salesperson at the only Ford automobile dealership in Winnipeg, Manitoba.
However, there are several other auto dealerships in town, offering both domestic and foreign
cars and trucks. Paul works hard to keep his customers satisfied because he knows that if his
customers are unhappy, they can simply buy a car from one of the many other comparable
dealers in Winnipeg. This is an example of:
A. pure competition.
B. monopolistic competition.
C. an oligopoly.
D. a monopoly.
164.In a situation where coffee bean prices doubled, resulting in the price of coffee doubling as well,
consumers may switch to tea, where the prices remained stable. This collective marketplace
likely has which type of competition?
A. pure
B. cross-market
C. oligopoly
D. monopolistic
165.Coupons and sales are frequently used marketing tactics in which form of competition?
A. pure competition
B. cross-market competition
C. oligopoly
D. monopolistic competition
166.Most of the catalogue retailers during the 2007 Christmas season offered buyers price
reductions, coupons, two-for-one buying opportunities and/or free delivery. This is because these
catalogue retailers operate in:
A. pure competition.
B. cross-market competition.
C. an oligopoly.
D. monopolistic competition.
167.The competitive situation where Bell Canada, Rogers Wireless, and Telus Mobility control over
90 percent of the mobile phone market is called a(n):
A. monopoly.
B. oligopoly.
C. collusion.
D. monopolistic competition.
168.The competitive industry where Ford, GM, and Toyota operate in can best be described as:
A. Pure competition
B. Cross-market competition
C. Oligopoly
D. Monopolistic competition
169.The competitive situation where the LCBO operates in is known as a(n):
A. pure competition
B. cross-market competition
C. monopolistic competition
D. monopoly
170.Ralph Moore enjoys soft drinks. He prefers the Seven-Up lemon and lime beverage. He has
heard rumours that the Seven-Up Company will be bought out by one of the industries two
leading and market dominant competitors. Further, he has heard that if that happens, the SevenUp brand soft drink will be eliminated since it competes with the competitor's main lemon and
lime offering. What Ralph is experiencing are developments that are most likely to take place
within which type of competitive environment?
A. monopoly
B. oligopoly
C. pure competition
D. monopolistic competition
171.Kodak, Fuji, and Agfa control the majority of sales for amateur photographic film. This exemplifies
the competitive situation called:
A. an oligopoly.
B. a trilateral monopoly.
C. unfair trade practice.
D. collusion.
172.Before UPS and FedEx became prominent, Canada Post operated in what type of competition
environment?
A. Pure competition
B. Monopoly
C. Oligopoly
D. Monopolistic competition
173.Marketing generally plays a small role in which competitive situation?
A. pure competition
B. a monopoly
C. an oligopoly
D. monopolistic competition
174.Canada is sometimes referred to by some economists as the "land of _________" because it has
several major industries that can be considered _______, including the airline industry and the
banking industry.
A. pure competition, purely competitive
B. oligopoly, oligopolistic
C. monopoly, monopolistic
D. monopolistic competition, monopolistically competitive
175.When a new mobile phone operator wants to establish themselves in Canada, they must
consider all of the following components or forces that drives competition except:
A. ease of entry
B. the bargaining power of buyers and suppliers
C. monopolistic power
D. the possibility of product substitution
176.Becoming a new provider of hydroelectric power in Quebec is likely difficult and so existing
providers do not worry much about new competition. Therefore, the ______________ is/are likely
high in this marketplace.
A. "smart" security devices designed for office buildings
B. a set of rules and procedures that firms in an industry present to new firms in the industry
C. business practices or conditions that make it difficult for new firms to enter a market
D. a set of security devices used primarily in automobiles
177.Examples of possible barriers to entry include all of the following with the exception of:
A. capital requirements.
B. advertising expenditures.
C. bargaining power of buyers.
D. switching costs.
178.In considering its competition, a firm must assess the likelihood of new entrants. Additional
producers in the marketplace typically:
A. reduce industry capacity and lower prices.
B. reduce industry capacity and raise prices.
C. increase industry capacity and raise prices.
D. increase industry capacity and lower prices.
179.A new brewery that wants to market beer nationally must deal with the fact that Anheuser-Busch
spends over $225 million a year on marketing. This statement is an example of _____ for the new
national brewery.
A. a barrier to entry
B. the power of buyers
C. the power of suppliers
D. social responsibility
180.Barriers to entry are business practices
or conditions that make it difficult for new firms to enter the market. Which of the following is not
an example of a barrier to entry?
A. capital requirements
B. advertising expenditures
C. distribution access
D. a company's manufacturing cycle
181.Although in Canada reasonable efforts are made to provide a "level playing field" in business, it
would be difficult for a new Canadian automobile company to be established today, primarily
because of:
A. barriers to entry.
B. corporate prejudices.
C. government regulations of competitive practices.
D. lower standards of living.
182.John wants to buy WWE SmackDown vs. Raw, a new video game marketed for the Xbox 360, a
Microsoft and WWE joint venture. The game costs $65 and will only play on an Xbox 360 game
console, which will cost him about $450. If he commits to buying the Xbox, it is unlikely he will
buy anything but Xbox games due to:
A. capital requirements.
B. access to distributors.
C. switching costs.
D. product differentiation.
183.The power of buyers will increase when:
A. the number of buyers is high.
B. the number of buyers is low.
C. there are high switching costs.
D. the product represents a small share of the buyer's total cost.
184.A supplier gains power when the product is:
A. critical to the buyer, and switching costs are high.
B. relatively unimportant to the seller, and switching costs are low.
C. relatively unimportant to the seller, and switching costs are high.
D. critical to the buyer, and switching costs are low.
185.Tiger Direct is an online company that exists only in the online world. Because Tiger Direct does
not have bricks and mortar, it can be referred to as a:
A. self-sufficient player
B. pure-play competitor
C. consumer to business entity
D. consumer generated content provider
186.John's Auto Body shop has fewer than 5 employees; the local community business census
specifically refers to his firm as a:
A. small enterprise
B. medium-sized enterprise
C. virtual enterprise
D. micro-enterprise
187.When the Canadian Government implements new laws about Temporary Foreign Workers on
businesses, they are essentially implementing new:
A. Jurisprudence
B. Regulations
C. Competitive restraints
D. Legal formalizations
188.In 1998, F. Hoffman-LaRoche Ltd. and BASF AG, two international pharmaceutical companies,
were ordered to pay $725 million in fines for plotting to raise and fix prices of vitamins used in
virtually every home in the U.S. This is an example of how _____ forces affect the marketing
environment.
A. regulatory
B. ecological
C. technological
D. social
189.Forrester Research estimates marketers in 1999 lost about $3 billion in potential sales because
consumers were worried about privacy. Although there are several laws being considered that
would protect consumers' rights to privacy, none have yet made been made into a law. This is
one way _____ forces have not helped the growth of electronic commerce.
A. economic
B. competitive
C. regulatory
D. social
190.Canadian recently put a new bill in place (Bill C-28) to fight against Internet and wireless spam.
The bill refers to spam as:
A. identity theft, phishing, and spyware
B. social media marketing
C. online blogs
D. personal websites
191.Which of the following offences is not a criminal offence under the Competition Act in Canada?
A. bid rigging.
B. predatory pricing.
C. bait-and-switch selling.
D. price skimming.
192.A new ad from Toys'R'us is directed to children using common Disney characters. This ad would
be allowed in all provinces except:
A. Ontario.
B. British Columbia.
C. Quebec.
D. Alberta.
193.Although The Beerstore and The LCBO sell the majority of alcohol in Ontario, the Microbrewery
Association of Ontario (MAO) regulates all of the microbreweries to ensure fair play. The
microbrewery industry is one that has:
A. self-regulation.
B. self-policing.
C. industry regulation.
D. self-monitoring.
194.The grassroots movement started in the 1960s to increase the influence, power, and rights of
consumers in dealing with institutions is known as
A. Protectionism
B. Environmental scanning
C. Consumerism
D. Ethnocentrism
195.In the 1960s, U.S. President Kennedy developed what is known as the Consumer Bill of Rights.
This legislation was developed to protect consumers from unscrupulous marketers and
guaranteed consumers to four fundamental rights, including the right to be informed, the right to
choose, the right to be protected and the right to be heard. More recently, the Children's Online
Privacy Protection Act (1998) Act has been legislated in the U.S. Many laws such as these are
the results of:
A. consumerism.
B. marketing ethnicity.
C. government intervention.
D. constructive marketing.
196.Recent research shows that 80 percent of Canadians are unaware of this legislation, yet
Canadian consumers are concerned about their privacy:
A. The Privacy Act (PA) and Personal Information Protection and Electronic Documents Act
(PIPEDA)
B. Hazardous Products Act.
C. Board of Trade Act.
D. Food and Drugs Act.
197.The largest consumer group working on behalf of the Canadian consumer is:
A. The Consumers Association of Canada.
B. The Consumer Protection Association.
C. The Ralph Nader Association.
D. Consumer and Corporate Affairs.
198.All of the organic farms in Ontario have gotten together to establish their own rules, regulations,
and laws to abide to. They are engaging in:
A. industry growth regulation.
B. consumerism.
C. consumer protection.
D. self-regulation.
199.The well known self-regulatory group for competitive businesses is the:
A. Consumer and Corporate Affairs.
B. Chamber of Commerce.
C. Better Business Bureau.
D. Federal Trade Commission.
200.The Better Business Bureau:
A. is the best-known federal agency involved in monitoring self-regulation of competing
businesses.
B. has a great deal of legal power to force a company to comply with regulations.
C. is not involved with Internet commerce.
D. is a voluntary alliance of companies whose goal is to help maintain fair practices.
201.One of the problems associated with self-regulation is:
A. the lack of a code of ethics.
B. information overload.
C. corporate espionage opportunities.
D. noncompliance by members.
202.Best Buy research revealed that consumers were beginning to see ________ as a critical element
of their electronics purchases.
A. price
B. computing needs
C. service
D. value
203.Geek Squad must monitor changes in the _________ environment since it continues to change
with respect to electronic transfer of copyrighted materials such as music, movies, and software.
A. social
B. economic
C. competitive
D. regulatory
204.Give examples of how the five environmental forces have affected the marketing environment.
205.What is environmental scanning? How is it used in marketing?
206.What are the major considerations for conducting environmental scanning for a new model of
automobile?
207.How would the following environmental trends influence the success of a manufacturer of
televisions, video, and Blu-Ray players, and related equipment? (1) growing number of older
Canadians, (2) population shifts to remote suburbs and small towns, (3) increase in per capita
income and standard of living, and (4) increased use of communication technology (for example,
growing numbers of households have cable connections).
208.Why are marketers interested in baby boomers?
209.Define Generation X, and explain why it is important to marketers.
210.What changes have occurred in the last 25 years in the structure of the Canadian family?
211.What are some examples of the changing roles of men and women? What are their implications
for marketers?
212.What is ethnic marketing? Give an example of product modification that illustrates regional
preferences.
213.How does the economy affect marketing?
214.How does technology affect marketing?
215.There are only five major recording labels in the world - Bertelsmann AG's BMG Entertainment,
EMI Recorded Music, Sony Music Entertainment, Time-Warner's Warner Music Group, and
Seagram's Universal Music Group. They are responsible for the large majority of music
recordings that are made. Harry says that the five music companies operate in an oligopoly.
Maryanne says that the five companies operate in monopolistic competition. Explain how each
came to his or her conclusion. Who is correct?
216.What are barriers to entry? Define and give examples.
217.What conditions exist when a competitive analysis reveals powerful buyers?
218.Practitioners recognized the need to differentiate businesses before and after the Internet
became an integral part of marketing. They have coined the term "pure-play online competitors"
to describe businesses that uses the Internet in their day-to-operation. List three ways that a pure
play online business differs from the more traditional, pre-Internet business.
219.The Competition Act is a key piece of legislation in Canada. What is the Act designed to do?
Highlight three important areas covered by the Competition Act.
220.Some industries have opted for self-regulation of their members to ensure that each acts fairly.
Discuss potential problems associated with self-regulation.
221.Many Canadians are changing their attitudes toward health. List ways in which are seeing this.
222.Name the four basic forms of competition and give an example of each.
223.List and explain the factors that drive competition.
224.Describe how marketers might use different ‘ethnic marketing' strategies to engage with different
ethnic groups to sell financial services.
225.How do you think the Anti-Spam Legislation (Bill C-28) will affect consumers' confidence to
continue using social networking sites as prevalently as they are now?
Chapter 03 Scanning the Marketing Environment Key
1.
With more individuals wanting tools for obtaining information, offering opinions, and interacting
with friends, Facebook was influenced by which major force?
A. social
B. technological
C. economic
D. competitive
(Chapter Opening Example) Social forces changed as people became increasingly interested
in the social aspects of the Internet. They wanted tools for obtaining information, offering
opinions, and interacting with friends.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #1
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
2.
As the cost of wireless connectivity, Internet service, and smartphones declined, social
networking became affordable for consumers around the world. Facebook has leveraged this
__________ force.
A. social
B. technological
C. economic
D. competitive
(Chapter Opening Example) Economic forces also influenced the demand for Facebook as the
cost of wireless connectivity, Internet service, and smartphones rapidly declined and made
social networking affordable for consumers around the world.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #2
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
3.
Facebook has faced significant scrutiny from many privacy regulators since its creation,
including from Canada's Privacy Commissioner, which forced Facebook to undergo numerous
account changes to make controlling your privacy settings easier. Facebook was influenced by
which force?
A. regulatory and legal
B. economic
C. technological
D. social
(Chapter Opening Example) Legal and regulatory forces also affected Facebook. The
company obtained rights to the name, developed privacy guidelines, and settled a claim that
some of the ideas behind Facebook had come from other students.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #3
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
4.
Bell Canada frequently commissions numerous studies of the market to gather information on
events outside the organization and learn and interpret any trends. Bell is engaging in which
activity?
A. Outsourcing
B. Competitive intelligence gathering
C. Company protection
D. Environmental scanning
Trends typically arise from five sources included in an environmental scan: social, economic,
technological, competitive, and regulatory forces.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #4
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
5.
A company engaged in environmental scanning is:
A. taking into account the effect its marketing activities can have on plants and animals in our
environment.
B. continually acquiring information on events occurring outside the organization to identify
and interpret potential trends.
C. maintaining a time constant horizon in its strategic planning process.
D. maintaining retail customer databases.
Environmental scanning is the process of continually acquiring information on events occurring
outside the organization to identify and interpret potential trends.
Accessibility: Keyboard Navigation
Blooms: Remember
Crane - Chapter 03 #5
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
6.
Changes in the marketing environment are a source of _______ and _______ to be managed.
A. strengths; weaknesses
B. opportunities; threats
C. competitive advantage; competition
D. income; growth
Changes in the marketing environment are a source of opportunities and threats to be
managed.
Accessibility: Keyboard Navigation
Blooms: Remember
Crane - Chapter 03 #6
Difficulty: Easy
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
7.
A company that experiences truncated future growth when launching a new product, may
have failed to initially engage in:
A. Environmental scanning
B. Competitive intelligence gathering
C. Company protection
D. Business modeling
Companies that fail to engage in environmental scanning do so at their peril and perhaps
truncate their future growth.
Accessibility: Keyboard Navigation
Blooms: Remember
Crane - Chapter 03 #7
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
8.
A marketing manager for Foster Parent's Plan of Canada reads in Macleans that despite the
Internet and television, Canadians are actively engaged in their communities. Over fifty
percent have performed volunteer work and almost 80 percent have donated money to
charities. She asks research and development personnel to identify possible new ad
campaigns that will encourage this high levels of community-connectedness to continue. This
ad campaign change is the result of the managerial activity:
A. ecological/technological forecasting.
B. environmental scanning.
C. macroeconomic analysis.
D. strategic planning.
The process of continually acquiring information on events outside the organization in order to
identify and interpret potential trends is called environmental scanning.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #8
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
9.
A marketing manager for United Way reads in a business journal that despite the Internet and
television, North Americans are actively engaged in their communities. 54 percent have
performed volunteer work and 78 percent have donated money to charities. She asks
research and development personnel to identify possible new ad campaigns that will
encourage this high levels of community-connectedness to continue. This ad campaign
change is the result of the managerial activity:
A. ecological/technological forecasting.
B. environmental scanning.
C. macroeconomic analysis.
D. strategic planning.
The process of continually acquiring information on events outside the organization in order to
identify and interpret potential trends is called environmental scanning.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #9
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
10.
Statistics Canada revealed that coffee consumption in Canada has risen to over 90 litres.
Sports drinks, energy drinks, and bottled water all saw increases in consumption as well. But
tea and soft drink consumption actually declined. This type of information is the result of:
A. ecological/technological forecasting.
B. environmental scanning.
C. macroeconomic analysis.
D. strategic planning.
The process of continually acquiring information on events outside the organization in order to
identify and interpret potential trends is called environmental scanning.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #10
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
11.
Which of the following statements regarding environmental scanning is most accurate?
A. Environmental scanning changes the marketing environment.
B. Environmental scanning identifies and interprets potential trends.
C. Environmental scanning should be done at least every five years.
D. Environmental scanning focuses primarily on geographical factors.
Environmental scanning is the process of continually acquiring information on events occurring
outside the organization to identify and interpret potential trends.
Accessibility: Keyboard Navigation
Blooms: Remember
Crane - Chapter 03 #11
Difficulty: Easy
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
12.
The United Way of Canada found in a recent survey that more individuals were planning on
volunteering their time in 2014, than they did in 2013. This survey is an aspect of:
A. social needs forecasting.
B. transactional exchange.
C. macroeconomic analysis.
D. environmental scanning.
Learning how to keep the volunteers focused will require ongoing study of all aspects of the
marketing environment.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #12
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
13.
You are the Director of Marketing for Starbucks. You are doing an environmental scan to help
you create a three-year marketing plan for the Canadian market. Which of the following
environmental trends should you consider the MOST important?
A. Coffee consumption in Canada has risen to over 90 litres.
B. By the year 2012, baby boomers will control more than 65 percent of all consumer
expenditures.
C. The largest cities in Canada have all seen a rise in dual-income couples who bring with
them larger disposable incomes.
D. By the year 2013, robotics will play a major role in North American society.
Statistics Canada revealed that coffee consumption in Canada has risen to over 90 litres.
Beer, wine, and bottled water all saw increases in consumption as well. But tea and soft drink
consumption actually declined. Clearly, many players in the Canadian beverage industry are
affected by these trends. Obviously, coffee manufacturers, coffee shops, and supermarkets
would be affected positively and would benefit from this trend.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #13
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
14.
Boston Consulting Group is giving a presentation to one of their clients and highlights different
trends that are affecting the business environment. They conclude that all of the following are
environmental trends that typically arise from each of the following sources except:
A. economic forces
B. technological forces
C. competitive forces
D. managerial forces
Environmental trends typically arise from five sources: social, economic, technological,
competitive, and regulatory forces.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #14
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
15.
You are in charge of the marketing program for a consumer electronics company. You have
been asked to think about developing a plan that will allow the firm to grow sales by at least 10
percent each year for the next five years. Prior to developing these plans you should engage
in which of the following processes?
A. ecological/technological forecasting.
B. macroeconomic analysis.
C. environmental scanning
D. strategic planning.
The process of acquiring information on events occurring outside the organization to identify
and interpret potential trends is a necessary precursor to engaging in strategic planning.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #15
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
16.
As a consultant with Accenture, you frequently engage in environmental scanning on behalf of
your clients. Which of the following statements about environmental scanning best describes
what actually happens?
A. Environmental scanning changes the marketing environment.
B. Environmental scanning focuses primarily on geographical and meteorological factors.
C. Environmental scanning is an annual event.
D. Environmental scanning identifies and explains potential trends.
Environmental scanning is the process of acquiring information to identify and interpret
potential trends.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #16
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
17.
According to one of the world's largest publishers, it was unprepared for recent increases in
the demand for books about security. To prepare for the shift in demand, the publisher should
have engaged in:
A. tracking environmental trends as a part of its ongoing operation
B. noticing changing demographics
C. noticing changes in ethnic composition
D. shifting funds from its product development department
If it had determined through previous experiences and research that concerns about security
were increasing, then it would have prepared for increased demand.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #17
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
18.
A manufacturer of major appliances uses environmental scanning and identifies various
trends. Which of the following trends might be more relevant to this manufacturer's success in
terms of product development?
A. the growth in electronic commerce.
B. advances in biotechnology, cosmetic surgery, and cancer drugs.
C. new legislation related to digital copyright, intellectual property protection, and consumer
privacy.
D. eco-consciousness.
See Figure 3-2. A trend towards Canadians being more eco-conscious might influence how an
appliance manufacturer considers energy consumption in the design of its products.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #18
Difficulty: Difficult
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
19.
Responding to the movement towards reducing our carbon footprint, the federal government
recently made financial incentives available to Canadians who made their homes more
energy-efficient. According to an environmental scan of Canada, this growth in ecoconsciousness reflects a change in _____ forces.
A. economic
B. competitive
C. technological
D. social
See Figure 3-2. This might be mistaken for a regulatory trend since the example involves
government, but the actual relevant environmental trend is the social trend of being more ecoconscious.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #19
Difficulty: Difficult
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
20.
Use of Facebook has grown significantly in developing countries over the last couple of years
as internet and smartphone connectivity has increased as well in these countries. This rising
trend is an example of _____ forces.
A. economic
B. competitive
C. technological
D. social
See Figure 3-2.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #20
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
21.
Sir Galahad's is a high-fashion boutique selling top-of-the-line men's clothing and accessories.
The keys to Sir Galahad's success include knowing men's changing fashion tastes and
providing something different from other clothing retailers. In addition, because of the high
value of the merchandise, Sir Galahad's management is searching for information on available
computerized inventory controls and sales order processing. From this description, one can
infer that the environmental category of least importance to Sir Galahad's is:
A. regulatory.
B. economic.
C. technological.
D. social.
Only regulatory issues are not mentioned in the question.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #21
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
22.
Shoppers Drug Mart has been opening an increasing number of stores in areas where the
‘baby boomer' generation makes up a large proportion of the population. Which force is likely
playing a factor in these decisions?
A. ecology.
B. macroeconomic conditions.
C. regulatory forces.
D. social forces.
Figure 3-1
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #22
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
23.
You are the Director of Marketing for Starbucks. You are doing an environmental scan to help
you create a three-year marketing plan for increasing your presence in Canadian postsecondary institutions. Which of the following environmental trends should you consider the
MOST important?
A. Consumption of coffee by 18- to 24-year-olds is now at a record high.
B. By the year 2012, baby boomers will control more than 65 percent of all consumer
expenditures.
C. The largest cities in Canada have all seen a rise in dual-income couples who bring with
them larger disposable incomes.
D. Coffee consumption in Canada has risen to over 90 litres.
Despite option D being a relevant trend, specific to the plan to target more Canadian colleges
and universities, the increase in consumption of coffee by 18- to 24-year-olds now being at a
record high would appear to be the more important trend.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #23
Difficulty: Difficult
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
24.
The local City Hall is assessing the need to build an additional community centre in the town.
To be successful, they need to understand demographic shifts in the population and various
cultural changes in their community. The City will be most concerned with which force?
A. ecology.
B. macroeconomic conditions.
C. regulatory forces.
D. social forces.
Figure 3-1
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #24
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
25.
Changes in social forces can have a dramatic impact on a marketing strategy, some of these
social forces in the environment include the demographic characteristics of the population, and
it's _____.
A. living standards
B. social class
C. values
D. dialect
Social forces are those forces of the environment that include the demographic characteristics
of the population and its values.
Accessibility: Keyboard Navigation
Blooms: Understand
Crane - Chapter 03 #25
Difficulty: Easy
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
26.
A magazine that appeals to single parents has noticed an increase in monthly subscription
sales over the last several years. After completing their environmental scan, they attribute this
increase to a change in which force in the marketing environment?
A. economic
B. competitive
C. technology
D. social
Social forces include changing demographics - in this case an increasing single parent
population.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #26
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
27.
More magazine is a new publication designed to appeal to women over the age of 40.
Demand for such magazines is an example of how changing _____ characteristics impact the
marketing environment.
A. cultural
B. behavioural
C. occupational
D. demographic
Age and gender are demographic characteristics.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #27
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
28.
By 2011, the Canadian population is estimated to be 34 million; by 2050, it is expected to be
43 million and even more ethnically diverse. This demographic information is part of which
environmental factor?
A. social
B. technological
C. regulatory
D. economic
The social forces of the environment include the demographic characteristics of the population
and its values.
Accessibility: Keyboard Navigation
Blooms: Remember
Crane - Chapter 03 #28
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
29.
The United Way of Canada is constantly monitoring different social forces in the marketing
environment. Which statement below most accurately relates to social forces?
A. empower workers to improve their performances.
B. usually have little impact on marketing strategy.
C. include reduced emphasis on trade regulation.
D. include demographics and values.
Demographics are measurable characteristics. Values and attitudes cannot be measured; age
and ethnicity can be.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #29
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
30.
Per capita income ranges from $115,000 in Luxembourg, to $50,000 in Canada, to $600 in
Afghanistan. Per capita income is a component of which environmental category?
A. cultural
B. behavioural
C. occupational
D. demographic
Demographics are the characteristics of a human population. These characteristics include
population size, growth rate, gender, marital status, ethnicity, income, and so forth.
Accessibility: Keyboard Navigation
Blooms: Remember
Crane - Chapter 03 #30
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
31.
The fastest growing population segment in Canada was born between 1946 and 1964. This
segment is known as:
A. generation X
B. baby boomers
C. generation Y
D. mid-millenials
A major reason for the greying of Canada is that the baby boomers —the generation of those
born between 1946 and 1964—are growing older.
Accessibility: Keyboard Navigation
Blooms: Understand
Crane - Chapter 03 #31
Difficulty: Easy
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
32.
Michael is recently divorced and has two children. He moves in with Leanne, also a recent
divorcee who has one child. How is this new family structure classified?
A. Brady Bunches
B. Blended families
C. Merged families
D. Hallmark families
A blended family is a family formed by the merging into a single family of two previously
separated units.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #32
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
33.
Over 50 percent of the Canadian population is located in just the top 10 CMAs in the country,
which include such cities as Toronto, Montreal, Vancouver, Ottawa, Calgary, and Edmonton.
In this instance, CMAs stands for:
A. Canadian metropolitan area
B. Census metropolitan area
C. Certified metropolitan area
D. Canadian market area
Census metropolitan areas (CMAs) are geographic labour markets having a population of
100,000 persons or more.
Accessibility: Keyboard Navigation
Blooms: Remember
Crane - Chapter 03 #33
Difficulty: Easy
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
34.
Walmart decides to run two different ads in Toronto, Ontario. One, in a predominant Chinese
market, is written in Chinese; the other, in a large Italian area, is written in Italian. Walmart is
engaging in what type of marketing?
A. discriminatory marketing
B. micromarketing marketing
C. social marketing
D. ethnic marketing
Ethnic marketing is the combinations of the marketing mix that reflect the unique attitudes,
race or ancestry, communication preferences, and lifestyles of ethnic Canadians; sometimes
called multicultural marketing.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #34
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
35.
In many Inuit communities in Northern Canada, elders pass on values, ideas, and attitudes
through stories and songs to members of their generational family. These items that are
learned and shared among members of a group are collectively known as:
A. culture
B. ethnicity
C. pychographics
D. ethnographics
Culture is the set of values, ideas, and attitudes that are learned and shared among the
members of a group.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #35
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
36.
A day care conducted a survey and found that 60 percent of Canadian women work outside
the home and are no longer home to watch children that are too young for school. The day
care offers a special that says: "Heading back to work after maternity leave? Leave the kid
watching up to us!" The day care is taking advantage of which trend?
A. competitive trend
B. family trend
C. regulatory trend
D. cultural trend
A noteworthy cultural trend in Canada is that 60 percent of Canadian women work outside the
home and in fact, women now make up close to half of the Canadian labour force.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #36
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
37.
Kraft Canada launched a specific microsite for new Canadians who recently arrived from
South Asia, called Kraft Ka Khana. As a multicultural marketer, Kraft can do many of the
following examples of things to engage with a diverse audience, except ________.
A. start to customize, not generalize
B. build a relationship with your ethnic Canadian customers. Acknowledge them as Canadians
while respecting them for being different in their culture and value systems
C. build stereotypes
D. spend your resources in gaining knowledge of these ethnic markets, including good field
research
MARKETING MATTERS - Engaging Canada's Ethnic Groups Using Social Media: A
Marketing Imperative
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Blooms: Understand
Crane - Chapter 03 #37
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
TB Figure 1
Crane - Chapter 03
38.
According to TB Figure 1 above, by the year 2050, which age group is projected to account for
most of the world's population?
A. 0-14
B. 15-59
C. 60-69
D. 70-79
By the year 2050, the world population age group 15-59 will have the most members as
shown by the red dotted line at the top of the chart.
Blooms: Apply
Crane - Chapter 03 #38
Difficulty: Difficult
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
39.
According to TB Figure 1 above, in 2005 the approximate size of the world population of those
aged 0-14 was
A. 5.5 billion
B. 4 billion
C. 1.5 billion
D. 1 billion
In 2005 (shown in the middle of the horizontal axis) the population of the 0-14 age group
(shown by the middle turquoise line) was approximately 1.5 billion.
Blooms: Apply
Crane - Chapter 03 #39
Difficulty: Difficult
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
40.
According to TB Figure 1 above, in what year will the population totals for people under 14 and
people over 60 be relatively the same?
A. Sometime in the 1950s
B. Sometime in the 1990s
C. In the year 2008
D. Sometime in the 2040s
At some point in the years 2040 to 2050 the population under 14 year olds begins to decline
and the population of people over 60 continues to grow. The lines on the graph indicate that
they cross at some point in the 2040s.
Blooms: Apply
Crane - Chapter 03 #40
Difficulty: Difficult
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
41.
Which generational cohort is the Samsung ad in TB Figure 2 below most likely trying to reach?
TB Figure 2
A. Generation X
B. Baby boomers
C. Generation Y
D. The baby bust generation
Generation Y exerts influence on music, sports, computers, video games, and especially cell
phones. Generation Y views wireless communication as a lifeline to friends and family and
was the first to use Web-enabled mobile phones to stream video, send and receive text
messages, play games, and access e-mail.
Blooms: Apply
Crane - Chapter 03 #41
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
42.
The generation of children born to baby boomers, a period of increasing births, is sometimes
referred to as a(n):
A. baby boomer
B. baby buster
C. boomerang
D. echo-boom
Generation Y includes those born between 1977 and 1994. This was a period of increasing
births, which resulted from baby boomers having children, and it is sometimes referred to as
the echo-boom or baby boomlet.
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Blooms: Remember
Crane - Chapter 03 #42
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
43.
HSBC Bank International Ltd. (Europe's largest bank) selected its advertising agency because
that agency was "always sensitive to the possibility that something might not translate well or
may offend superstitions about colours or numbers." Its advertising agency was responsive to
A. psychographic differences.
B. population shifts.
C. racial and ethnic diversity.
D. a value consciousness.
Many companies are developing multicultural marketing programs, which are combinations of
the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and
lifestyles of different races.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #43
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
44.
Anya has been instructed to prepare a short paper on her ancestry. She has asked some
friends to explain the topic to her. Which of the following statements offers the BEST
explanation?
A. She is supposed to write about her family's customs.
B. She is supposed to describe the personalities in her family.
C. She is supposed to write about the ethnic composition of her family.
D. She is supposed to write about any geographical shifts her family has made and how it
changed them.
Demographics is the study of the characteristics of a human population. These characteristics
include population size, growth rate, gender, marital status, ethnicity, income, and so forth.
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Blooms: Apply
Crane - Chapter 03 #44
Difficulty: Difficult
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
45.
When assessing the viability for a new store location, Starbucks will review the population
distribution, income, and occupation of those residents that inhabit each area. Which item
below is Starbucks most concerned with?
A. cultural census
B. psychographics
C. social audit
D. demographics
Demographics is the study of the characteristics of a human population. These characteristics
include population size, growth rate, gender, marital status, ethnicity, income, and so forth.
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Blooms: Apply
Crane - Chapter 03 #45
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
46.
Environmental scans have shown that the population of Canada is undergoing dramatic
change. For example, the number of people in this country who are between the ages of 20
and 34 has declined since 1990. On the other hand, the number of people who are 65 years of
age or older has increased. These changes in the Canadian population are examples of _____
changes to which marketers must respond.
A. cyclical population
B. psychographic
C. demographic
D. situational segment
The fastest growing age segment in Canada consists of the consumers who are over 50 years
of age. The study of the characteristics of a population's age, sex, income, occupation, and
ethnic background are all examples of demographics.
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Crane - Chapter 03 #46
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
47.
A new travel company decides to launch a ‘concierge-style' travel service that organizes
everything from pick-up at home, transport to the airport, and all the little aspects of the
subsequent trip, such as transportation and meals. Further, they have selected all of the hotels
to be wheelchair- and walker- friendly. Who is the likely target market for this travel
company?
A. infants.
B. people over 50 years of age.
C. children of baby boomers.
D. teens.
In Canada, by 2011, almost 15 percent of the population will be over the age of 65.
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Crane - Chapter 03 #47
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
48.
By 2050, the median age in Canada will increase by almost:
A. 2 years.
B. 4 years.
C. 5 years.
D. 9 years.
In Canada, the median age will rise from 40 years of age to almost 45 years of age by 2050.
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Blooms: Remember
Crane - Chapter 03 #48
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
49.
Toyota Canada recently developing a spin-off company to develop and market a new brand of
vehicles called Scion to appeal to the Generation Y group, while still marketing their traditional
brands, such as the Toyota Camry, to the baby boomers is an example of:
A. age cohort marketing.
B. generational marketing.
C. chronological automobile marketing.
D. ageist marketing.
Because the members of each generation are distinctive in their attitudes and consumer
behaviour, marketers have been studying the many groups or cohorts that make up the
marketplace and have developed generational marketing programs for them.
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Crane - Chapter 03 #49
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
50.
Since the mid-1970s, there has been a major shift in the Canadian population from rural to
urban areas. In fact, more than _______ of Canadians are urban dwellers.
A. 60%
B. 70%
C. 80%
D. 90%
Since the mid-1970s, there has been a major shift in the Canadian population from rural to
urban areas. In fact, more than 80 percent of Canadians are urban dwellers.
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Blooms: Remember
Crane - Chapter 03 #50
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
51.
The principal source of growth in the Canadian population will be from:
A. an increasing birth rate.
B. an increasing rate of multiple births (twins, triplets etc.).
C. emigration.
D. immigration.
With Canada's declining birth rate, the principal source of growth in the Canadian population
will be from immigration, which will add even more diversity to the Canadian population.
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Blooms: Remember
Crane - Chapter 03 #51
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
52.
The Government of Canada recently completed a population census. Their findings indicate
that generally, the population of Canada is becoming:
A. younger and more diverse.
B. older and more diverse.
C. younger and less diverse.
D. older and less diverse.
The population of Canada is becoming older and more diverse.
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Blooms: Remember
Crane - Chapter 03 #52
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
53.
When individuals publish information on social networking sites, such as Facebook, Twitter, or
Google+, they are generating what type of content?
A. user-generated content
B. self-published content
C. social media content
D. self-generated content
User-generated content (UGC) is media generated by users (customers) and disseminated via
various channels, in particular, the Internet.
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Blooms: Remember
Crane - Chapter 03 #53
Difficulty: Easy
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
54.
Why might a new company decide to target baby boomers, as opposed to Generation X?
A. include most of the important business leaders in Canada.
B. represent a small proportion of the population but have large disposable incomes.
C. have the longest life expectancies, and therefore, they will remain active in the market
place for the longest period of time.
D. have experienced increased earnings and they account for the majority of consumer
product purchases.
Baby boomers in Canada account for the majority of the purchases in most consumer product
and service categories.
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Blooms: Understand
Crane - Chapter 03 #54
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
55.
While watching the recent election or SuperBowl, a Twitter hashtag was superimposed at the
bottom of the television screen, encouraging viewers to tweet their thoughts about the event.
Considering that 65 percent of Canadians are also using this space for accessing the internet
and using various gadgets, experts are referring to this shift as the new:
A. digital living room
B. internet space
C. digital domain
D. internet domain
In a recent study, 65 percent of Canadian families surveyed believed their living rooms were
physically and experientially changing, including greater use of the Internet and the streaming
of content as well as greater interconnectivity between gadgets in the home—what some call
the "new digital living room."
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Crane - Chapter 03 #55
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
56.
Which of the following statements about baby boomers is NOT true?
A. Baby boomers account for the majority of the purchases in most consumer product and
service categories.
B. Generally, baby boomers are receptive to anything that makes them look and feel younger.
C. Baby boomers will change their buying behaviour to reflect concern about their children and
future retirement issues.
D. With advances in modern medicine, the aging baby boomer group is experiencing less agerelated health problems.
Baby boomers is the generation of those born between 1946 and 1964. The aging baby
boomer group experiences health problems related to aging, such as incontinence and erectile
dysfunction (ED). In fact, there is a heated ED marketing war in Canada as drug companies
vie for a share of this growing market.
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Blooms: Understand
Crane - Chapter 03 #56
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
57.
Drug companies promoting pharmaceutical products designed to address incontinence and
erectile dysfunction vie for a share of this growing market in attempting to lure _______.
A. echo-boom members
B. baby boomers
C. members of Generation Y
D. Generation Xers
The aging baby boomer group experience health problems related to aging, such as
incontinence and erectile dysfunction (ED). In fact, there is a heated ED marketing war in
Canada as drug companies vie for a share of this growing market.
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Blooms: Remember
Crane - Chapter 03 #57
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
58.
Marketers are activating traditional ‘static' messaging and products by employing which mobile
technology to engage consumers?
A. QR Codes
B. foursquare
C. Facebook
D. Twitter
A QR code (quick response code) is changing the mobile marketing game. You simply install a
simple "app" on your smartphone and you can scan the code; it converts to a URL and you are
directed to a company's website, store, or product
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Blooms: Remember
Crane - Chapter 03 #58
Difficulty: Easy
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
59.
‘Survivor' has been a very popular television show. It shows a group of sixteen strangers being
placed in two competitive teams of eight. Each team must survive in a natural environment
that is harsh and demanding. A reviewer described one of the teams in Survivor Africa as
being baby boomers versus Generation X. What do you infer from this statement?
A. The reviewer was surprised that baby boomers and members of Generation X were not
cooperating because they usually do.
B. That people over the age of 50 will more than likely conflict with people born after 1980.
C. Baby boomers want the same things as Generation X members; this caused the conflict
between them.
D. This behaviour was to be expected because baby boomers and members of Generation X
are typically very different from each other.
Because the members of each generation are distinctive in their attitudes and consumer
behaviour, marketers have been studying the many groups or cohorts that make up the
marketplace.
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Blooms: Apply
Crane - Chapter 03 #59
Difficulty: Difficult
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
60.
When a local coffee shop launches a new mobile version of their traditional website that can
be found using a mobile phone, the coffee shop recognizes the importance of:
A. mobile marketing
B. easy-to-read font
C. user-generated content
D. e-marketing
Mobile marketing is perhaps the core emerging digital platform for marketers. More than 26
million Canadians have mobile phones, and more than half of them are using smartphones.
Thus, is it little wonder why mobile marketing has become so important.
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Blooms: Apply
Crane - Chapter 03 #60
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
61.
Mobile marketing is perhaps the core emerging digital platform for marketers because more
than ____ million Canadians have mobile phones.
A. 16
B. 21
C. 26
D. 31
More than 26 million Canadians have mobile phones.
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Blooms: Remember
Crane - Chapter 03 #61
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
62.
Search-Engine Optimization (SEO) refers to the concept of:
A. using various techniques to move your content to the top of the first page
B. using various techniques to keep your content confidential
C. ensuring your newsletters do not end up in someone's spam email box
D. mass marketing
Many marketers use search-engine optimization (SEO) so that when you search for
information or items online, the resultant listings for certain keywords are the ones you see
first.
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Blooms: Remember
Crane - Chapter 03 #62
Difficulty: Easy
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
63.
Bernadin Canning products recently launched a new home canning, jarring, and preserving
DIY kit. Which consumer group is likely to be the target of this traditional activity?
A. Generation X
B. Generation Y
C. Baby boomer
D. A liberal cohort
Generation X comprises of the population of those born between 1965 and 1976.
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Blooms: Apply
Crane - Chapter 03 #63
Difficulty: Difficult
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
64.
When compared to baby boomers, members of Generation X:
A. save, plan for retirement and take advantage of retirement plans much earlier.
B. are less demanding as consumers.
C. are more extravagant.
D. account for a higher percentage of purchases of consumer products.
According to the text, Generation X are saving, planning for retirement, and taking advantage
of retirement plans much earlier than did the boomer generation.
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Blooms: Understand
Crane - Chapter 03 #64
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
65.
When the maker of a popular mobile search application utilizes gesture, touch, and voice in a
way to mimic how we operate day-to-day, the application maker recognizes which of the
following rising trends?:
A. natural user interfaces
B. smartphones
C. digital living room
D. predominance of Gen Y members to have a smartphone
"Natural user interfaces" utilize gesture, touch, and voice, changing the way we interact with
and control computers and complex machines.
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Blooms: Apply
Crane - Chapter 03 #65
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
66.
How are Generation Y members likely to view wireless communication?
A. critical aspect to their lives
B. a learned concept, because they remember when there was no wireless communication
C. something of the past
D. something they are still learning
Generation Y (Millennials) are those born between 1977 and 1994.
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Blooms: Understand
Crane - Chapter 03 #66
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
67.
The average Canadian family size is about:
A. 2 persons.
B. 3 persons.
C. 4 persons.
D. 5 persons.
The types of families in Canada are changing in both size and structure. The average family
size in Canada is about three persons.
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Blooms: Remember
Crane - Chapter 03 #67
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
68.
Which of the following statements accurately describes a recent trend in the Canadian family?
A. About 50 percent of all first marriages end in divorce.
B. There is an increase in traditional families.
C. Nearly one-half of all households now consist of people who live alone.
D. About 20 percent of all marriages end in divorce.
There is an increase in households headed by single parents and a decrease in traditional
families. About one-fourth of all households now consist of people who live alone and about 50
percent of first marriages end in divorce.
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Blooms: Understand
Crane - Chapter 03 #68
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
69.
Which major demographic factor most likely accounts for a step-parent purchasing one of
Hallmark's specially-designed cards and verses?
A. changes in the Canadian family structure
B. the baby boom
C. geographic shift
D. population trends
Today, many Canadians are finding themselves as a step-parent, step-child, step- sibling, or
some other member of a blended family. In fact, Hallmark Cards specially designs cards and
verses for such blended families.
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Blooms: Understand
Crane - Chapter 03 #69
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
70.
Over the last three years a local homebuilder has received an increasing number of requests
that ask for the home to include several living areas for extended family members staying long
term. The major driver of this shift is:
A. changes in the Canadian family structure
B. the baby boom
C. geographic shift
D. population trends
Due to changes in traditional Canadian families, more houses and apartments have two
master bedrooms for unmarried, unrelated people sharing space.
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Blooms: Apply
Crane - Chapter 03 #70
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
71.
When Holiday Inn decided to create a new version of their traditional hotel chain called
Holiday Inn Express, they recognized that consumers were concerned about obtaining the
best quality for a given price. This concept is known as:
A. price matching
B. value consciousness
C. value purchase
D. value business model
Value consciousness is the concern for obtaining the best quality, features, and performance
of a product or service for a given price. Sobeys Inc., one of Canada's top food retailers, offers
customers its Compliments Value brand of products, which is a private-label, value-based line.
Canada's major banks offer lower-interest credit cards, some with value-added
enhancements, such as frequent flyer programs and cashback offers. Even Canada's sports,
restaurant, and entertainment industries are appealing to the value-conscious customer.
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Blooms: Remember
Crane - Chapter 03 #71
Difficulty: Easy
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
72.
Lawyers often joke that they will never run out of business because of the increase in blended
families. This is because ____ percent of all first marriages in Canada end in divorce?
A. 25
B. 30
C. 50
D. 65
A blended family is a family formed by the merging into a single family of two previously
separated units.
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Blooms: Remember
Crane - Chapter 03 #72
Difficulty: Easy
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
73.
Marketers are using social media to engage different ethnic groups because it allows for
customization of the messages, images, and languages used. This is important because by
2031, it is estimated that _____ percent of the Canadian population will be part of an ethnic
group.
A. 21
B. 31
C. 41
D. 51
See: Engaging Canada's Ethnic Groups Using Social Media: A Marketing Imperative
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Blooms: Remember
Crane - Chapter 03 #73
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
74.
Developing marketing plans to reflect the unique attitudes, ancestry, communication
preferences, and lifestyles of ethnic Canadians is called ______.
A. trend marketing
B. ethnic marketing
C. target marketing
D. local marketing
Ethnic marketing (sometimes called multicultural marketing) programs are combinations of the
marketing mix that reflect the unique attitudes, race or ancestry, communication preferences,
and lifestyles of ethnic Canadians.
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Blooms: Understand
Crane - Chapter 03 #74
Difficulty: Easy
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
75.
Since the mid-1970's, the major shift in Canadian population has been:
A. from urban to rural areas.
B. from rural to urban areas.
C. from western to eastern provinces.
D. from north to south.
Since the mid-1970s, there has been a major shift in the Canadian population from rural to
urban areas. In fact, more than 80 percent of Canadians are urban dwellers.
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Blooms: Understand
Crane - Chapter 03 #75
Difficulty: Easy
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
76.
Which of the following does NOT constitute one of Canada's top 10 major CMA urban regions
which in total account for over 50 percent of the Canadian population?
A. Toronto
B. Edmonton
C. Calgary
D. Saskatoon
See population shifts
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Blooms: Remember
Crane - Chapter 03 #76
Difficulty: Easy
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
77.
The retailer Target decided to open their first twenty stores in Canada in all markets that have
a population of 100 000 or more, Target was focused on _____________ areas.
A. census municipal
B. regional marketing
C. census metropolitan
D. micropolitan statistical
Census metropolitan areas (CMAs) are geographic labour markets having a population of
100,000 persons or more.
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Blooms: Apply
Crane - Chapter 03 #77
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
78.
Marketers can now reach large segments of the Canadian population efficiently and effectively
because:
A. most Canadians are located outside of four major urban regions
B. since the 1970s there has been a major shift in the Canadian population from urban to rural
centres
C. the top 10 CMAs account for more than 50 percent of the Canadian population
D. more than 80 percent of Canadians are rural dwellers
Only option C is true.
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Blooms: Remember
Crane - Chapter 03 #78
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
79.
The trend toward eco-consciousness has opened up numerous opportunities for creative
businesspeople who are often referred to as:
A. green inventors
B. green entrepreneurs
C. ecopreneurs
D. eco-inventors
Ecopreneurs are entrepreneurs who see business opportunities through an environmental
lens.
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Blooms: Remember
Crane - Chapter 03 #79
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
80.
By 2031 and shortly thereafter, visible minorities will represent the majority of the population of
________ and _________.
A. Calgary; Winnipeg
B. Toronto; St.Catharines
C. Ottawa; Halifax
D. Vancouver; Toronto
In fact, by 2031, visible minorities will represent the majority of the population of Vancouver
and Toronto.
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Blooms: Remember
Crane - Chapter 03 #80
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
81.
By 2031, visible minorities are projected to represent almost ____ percent of the Canadian
population.
A. 10
B. 20
C. 30
D. 40
Visible minorities are projected to represent 30 percent of the Canadian population by 2031.
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Blooms: Remember
Crane - Chapter 03 #81
Difficulty: Easy
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
82.
McDonald's uses different promotional messages in different parts of Toronto, depending on
the predominant language spoken. McDonald's is likely using which strategy?
A. multicultural marketing
B. geographic marketing
C. target marketing
D. segmented marketing
Ethnic marketing (sometimes called multicultural marketing) programs are combinations of the
marketing mix that reflect the unique attitudes, race or ancestry, communication preferences,
and lifestyles of ethnic Canadians.
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Blooms: Apply
Crane - Chapter 03 #82
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
83.
The Canadian population is growing older, becoming more ethnically diverse, and increasingly
living in nontraditional families. Marketers must observe how _____ forces are affecting the
marketing environment.
A. competitive
B. regulatory
C. geographical
D. social
Demographic variables are social forces.
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Blooms: Understand
Crane - Chapter 03 #83
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
84.
HSBC Bank (formerly the Hong Kong Bank of Canada) selected its advertising agency
because that agency was "always sensitive to the possibility that something might not
translate well or may offend superstitions about colours or numbers." Its advertising agency
was responsive to:
A. psychographic differences.
B. population shifts.
C. culture and ethnic diversity.
D. a value consciousness.
Close to 70 percent of all immigrants to Canada are now classified as visible minorities,
primarily people from China, Southeast Asia, Africa, and India. Visible minorities are projected
to represent between 21 and 25 percent of the Canadian population by 2017. The largest
groups will be South Asians, Chinese, and blacks. Specifically, there will be close to 2 million
South Asians, 2 million Chinese, and over 1 million blacks in Canada by 2017.
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Blooms: Apply
Crane - Chapter 03 #84
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
85.
The Mutual Bank of Hong Kong selected its advertising agency because that agency was
"always sensitive to the possibility that something might not translate well or may offend
superstitions about colours or numbers." This is an example of how _____ forces affect
marketing.
A. social
B. technological
C. economic
D. competitive
The social forces include culture and ethnic diversity.
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Blooms: Apply
Crane - Chapter 03 #85
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
86.
The increase in immigration to Canada is likely to result in a firm's ____________ playing a
larger role in marketing.
A. ethnic marketing plans
B. multicultural products
C. immigration strategy
D. product development
Marketers have recognized the growing ethnic diversity in Canada and have developed
multicultural marketing programs. Immigration is forecasted to increase significantly in
Canada.
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Blooms: Understand
Crane - Chapter 03 #86
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
87.
When a local merchant issues several different ads, each in a different language, and
distributed to different areas of the community, they recognize the importance of:
A. Ethnic marketing
B. Functional marketing
C. Psychographic marketing
D. Cultural segmentation
Ethnic marketing is the combinations of the marketing mix that reflect the unique attitudes,
race or ancestry, communication preferences, and lifestyles of ethnic Canadians; sometimes
called multicultural marketing.
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Blooms: Apply
Crane - Chapter 03 #87
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
88.
In an interview, a potential candidate asked the hiring manager: "What is the culture like at
your organization?" In a sense, the candidate was trying to learn about the _________ of the
organization.
A. values, ideas, and attitudes
B. attitudes, ancestry, lifestyles
C. attitudes, ancestry, communication preferences
D. religious beliefs
Culture is the set of values, ideas, and attitudes that are learned and shared among the
members of a group.
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Blooms: Apply
Crane - Chapter 03 #88
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
89.
When a local gift shop creates an online "gift" for the mobile game CityVille that users can
purchase and play with online, this is an example of:
A. mobile marketing
B. the interaction between real life and virtual worlds
C. social media marketing
D. gift-exchange marketing
See mobile marketing
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Blooms: Apply
Crane - Chapter 03 #89
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
90.
Many Canadian consumers, particularly working women, are living harried lives and want to
do business with companies that can offer them greater convenience. Many businesses are
responding by offering express lanes of checkouts, longer store hours, drive-through windows,
delivery services, and electronic shopping. These businesses are responding to customers
experiencing:
A. chronological destitution.
B. time poverty.
C. job burnout.
D. role stress.
The number of tasks to do is expanding, while the time available to do them is shrinking. This
has led to the phenomenon of time poverty.
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Blooms: Remember
Crane - Chapter 03 #90
Difficulty: Easy
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
91.
TD Bank has recognized the trend of consumers experiencing time poverty, and has
implemented numerous strategies except:
A. offering express lanes for business
B. having longer opening store hours
C. having drive-through windows
D. having only one receptionist working at a time
The number of tasks to do is expanding, while the time available to do them is shrinking. This
has led to the phenomenon of time poverty. Many businesses are responding by offering
express lanes of checkouts, longer store hours, drive-through windows, delivery services, and
electronic shopping.
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Blooms: Apply
Crane - Chapter 03 #91
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
92.
Sobeys Inc., a major supermarket, offers its shoppers the convenience of one-stop shopping,
including groceries, in-store pharmacies, wellness centres, and banking services. In this way,
they are able to reach those who are ________________.
A. wealthy
B. of various ethnic backgrounds
C. making routine purchase decisions
D. time poor
With more working women, the number of tasks to do is expanding, while the available time to
do them is shrinking. This is referred to as time poverty in the text.
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Blooms: Apply
Crane - Chapter 03 #92
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
93.
Responding to consumer demand for value, Sobeys offers a line of products that come with a
low-price guarantee. In this way, they are able to reach those who are ________________.
A. wealthy
B. of various ethnic backgrounds
C. making a routine purchase decision
D. value conscious
Value consciousness is the concern for obtaining the best quality, features, and performance
of a product or service for a given price.
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Blooms: Apply
Crane - Chapter 03 #93
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
94.
Within the Canadian labour force, the number of tasks to do is expanding, while the time
available to do them is shrinking. This has led to the phenomenon of ________________.
A. technology adaptation
B. time poverty
C. less holidays
D. higher wages
Within the Canadian labour force, the number of tasks to do is expanding, while the time
available to do them is shrinking. This has led to the phenomenon of time poverty.
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Blooms: Remember
Crane - Chapter 03 #94
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
95.
You are the marketing director for McDonald's and have observed increased sales of salads,
water, and hamburgers with no mayo on them. As a result, you decide to offer a "buy one
large salad and receive a bottle of water for free" promotion at your stores. Which
environmental force most likely has contributed to this change in dietary habits?
A. economic
B. regulatory
C. competitive
D. social
One of the main cultural attitude shifts over the past few years has been an ever greater
concern with health and well-being, which has led to diet-conscious interests.
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Blooms: Apply
Crane - Chapter 03 #95
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
96.
There is a greater concern for health and well-being in Canada. This is evidenced by:
A. increased sales of Cigar Afficionado magazine.
B. the level of fitness activity and sports participation in Canada.
C. no cannibalization in the sales of Coke relative to Diet Coke or Coke Zero.
D. the opening of a record number of Granny's Old-Fashioned Ice Cream outlets.
Canadians are more concerned about their diets and health.
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Blooms: Apply
Crane - Chapter 03 #96
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
97.
The set of values, ideas, and attitudes of a homogeneous group of people that are transmitted
from one generation to the next is called:
A. social class.
B. morals.
C. culture.
D. reference groups.
Culture is the set of values, ideas, and attitudes that are learned and shared among the
members of a group.
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Blooms: Remember
Crane - Chapter 03 #97
Difficulty: Easy
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
98.
When a company uses different QR codes on different posters spread throughout a city, they
are able to understand which ads are more effective than others and which locations are best.
This use of technology recognizes the importance of:
A. mobile marketing
B. social media marketing
C. QR marketing
D. consumer engagement marketing
A QR code (quick response code) is changing the mobile marketing game. You simply install a
simple "app" on your smartphone and you can scan the code; it converts to a URL and you are
directed to a company's website, store, or product.
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Blooms: Apply
Crane - Chapter 03 #98
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
99.
Holiday Inn Worldwide offers customers Holiday Inn Express hotels, which feature comfortable
accommodations with room rates lower than the traditional Holiday Inns. In this way, they are
able to reach those who are ________________.
A. wealthy
B. of various ethnic backgrounds
C. making a routine purchase decision
D. value conscious
Value consciousness is the concern for obtaining the best quality, features, and performance
of a product or service for a given price.
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Blooms: Apply
Crane - Chapter 03 #99
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
100.
Canada's major banks offer lower-interest credit cards, some with value-added
enhancements, such as frequent flyer programs and cash-back offers. In this way, they are
able to reach those who are ________________.
A. wealthy
B. of various ethnic backgrounds
C. value conscious
D. making a routine purchase decision
Value consciousness is the concern for obtaining the best quality, features, and performance
of a product or service for a given price.
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Blooms: Apply
Crane - Chapter 03 #100
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
101.
Many Canadians are purchasing LED-based light bulbs instead of the traditional incandescent
bulb. As a result, GE doubled-down on their marketing efforts for their high-end multicolour
LED bulb. GE is responding to an emerging consumer trend known as ________________.
A. going green
B. the health trend
C. value consciousness
D. time poverty
Many Canadians are more sensitive about the impact their consumption has on their natural
environment, and they make their buying decisions accordingly. This may mean buying more
environmentally safe or more environmentally friendly products, buying products that can be
reused or recycled, or actually reducing consumption altogether.
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Blooms: Apply
Crane - Chapter 03 #101
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
102.
A Vancouver-based packaging company has created a package made from a renewable
resource called palm fibre, which composts in less than 90 days and provides a healthy
contribution to soil. In this way, they are able to reach those who are ________________.
A. wealthy
B. of various ethnic backgrounds
C. eco-conscious
D. making a routine purchase decision
Another emerging consumer trend is eco-consciousness or going green. Many Canadians are
more sensitive about the impact their consumption has on their natural environment, and they
make their buying decisions accordingly. This may mean buying more environmentally safe or
more environmentally friendly products, buying products that can be reused or recycled, or
actually reducing consumption altogether.
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Blooms: Apply
Crane - Chapter 03 #102
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
103.
Spending on foreign travel is up, spending on entertainment and dining outside the home is
also up, in particular, spending on ethnic foods. This illustrates another important trend in that
Canadians are becoming more ________.
A. technological
B. experiential
C. economic
D. ecological
Another important trend is that Canadians are becoming more experiential.
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Blooms: Remember
Crane - Chapter 03 #103
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
104.
A consultancy is presenting to their client about the importance of creating a friendly working
culture to increase productivity. Which of the following statements about culture is true?
A. Culture includes attitudes and values.
B. Culture is an example of an economic force within the marketing environment.
C. Because Canada is considered a "melting pot," cultural trends are typically not monitored
by businesses.
D. Culture is only considered an important facet of marketing in international marketing.
Culture incorporates the set of values, ideas, and attitudes of a homogenous group of people
that are transmitted from one generation to the next.
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Blooms: Apply
Crane - Chapter 03 #104
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
105.
The change in attitudes about work, from "I live to work" to "I work to live," helps explain which
of the following?
A. population shift to urban areas
B. stable gross income
C. Safeway Stores advertising in Newsweek magazines
D. growth in sales of Blu-Ray players, sports equipment, and easily prepared meals
Many consumers now see work as a means to an end-leisure, and entertainment. Product
categories described in answer choice "growth in sales of Blu-Ray players, sports equipment,
and easily prepared meals" are growing as consumers' attitudes toward work influence their
purchases.
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Blooms: Apply
Crane - Chapter 03 #105
Difficulty: Difficult
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
106.
The roles of men and women in Canadian society have changed dramatically during the past
decades. For instance, more women are actively and successfully pursuing careers in both the
public and private business sectors. Women across the nation have established successful
managerial and professional positions as doctors, lawyers, and astronauts. Such changes in
the role of women in society have necessitated that marketers adjust their marketing activities.
Which of the following is NOT an example of marketing changes due to changing roles of
women in the workforce?
A. 24-hour grocery stores
B. extended banking hours
C. automatic teller machines
D. a promotional campaign by televangelist espousing the virtues of home-cooking, children
being raised at home by their mothers, and denouncing daycare services
In response to changes in the roles and consumption patterns of women, marketers have
adapted, adjusted, and modified many of their marketing efforts. The traditional role of women
would suggest that women were home with the children and as such, were free to shop during
regular business hours (i.e., 9 am - 5 pm). With an increase in dual-income families, marketers
have had to become more flexible to accommodate the changing needs of the consumer.
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Blooms: Apply
Crane - Chapter 03 #106
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
107.
Which of the following factors can be used to help explain why Generation Y women no longer
feel the need to be feminists?
A. The television industry eliminated all shows where the woman was a stay-at-home mother.
B. The movie industry stopped making films about dependent women.
C. They were able to shop freely on the Internet.
D. Their mothers worked and gave them a reference point for lifestyle choices.
Neither the television nor the movie industry has abandoned the use of stereotypically
dependent women.
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Blooms: Understand
Crane - Chapter 03 #107
Difficulty: Difficult
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
108.
When car manufacturers advertise that they offer the highest quality of vehicle available with
all of the most desirable features at the lowest possible price, they try to compete by appealing
to consumers'________________.
A. value consciousness
B. perceived value desires
C. focused shopping habits
D. price targeting
Value consciousness is the concern for obtaining the best quality, features, and performance
of a product or service for a given price.
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Blooms: Apply
Crane - Chapter 03 #108
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
109.
How many Canadians are considered active personal bloggers?
A. 500,000
B. 1 million
C. 2 million
D. 3 million
Canadians are also blogging - over 1 million Canadians have a personal blog on the internet.
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Blooms: Remember
Crane - Chapter 03 #109
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
110.
The concern for obtaining the best quality, features, and performance of a product or service
for a given price will drive consumption behaviour into the foreseeable. This is known as:
A. price consciousness
B. stinginess
C. frugality
D. value consciousness
Value consciousness is the concern for obtaining the best quality, features, and performance
of a product or service for a given price.
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Blooms: Remember
Crane - Chapter 03 #110
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
111.
Sobeys Inc., one of Canada's top food retailers, offers customers its Compliments Value brand
of products, which is a private-label brand at a lesser price. This is designed to appeal to:
A. an ethnically diverse market.
B. value conscious consumers.
C. population age shifts.
D. geographic shifts.
Value consciousness is the concern of obtaining the best quality, features, and performance of
a product or service for a given price. Sobeys Inc., one of Canada's top food retailers, offers
customers its Compliments Value brand of products, which is a private-label, value-based line.
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Blooms: Apply
Crane - Chapter 03 #111
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
112.
Statistics Canada reports that Canadians are consuming less sugar, less fat, and fewer
calories in their diets. Many Canadians are also drinking healthier beverages, including bottled
water and juices, instead of traditional soft drinks in response to the obesity public health
threat. This concern represents:
A. changing values.
B. change in population composition.
C. demographic change.
D. increase in value consciousness.
Culture includes values.
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Blooms: Apply
Crane - Chapter 03 #112
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
113.
A local community league has seen a steady month-over-month increase in the number of
individuals who join their weeknight pick-up sports activities. Clearly, this community is seeing
a(n) __________ as it relates to an individual's health.
A. change in attitude
B. change in interests
C. increase in peer pressure by family members
D. increase in value consciousness
Culture includes attitudes.
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Blooms: Apply
Crane - Chapter 03 #113
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
114.
eBay, which allows consumers to engage in online buying and selling globally, is known as a:
A. consumer-to-consumer marketing site
B. consumer-seller direct marketing site
C. entrepreneur marketing site
D. buyer-seller marketing site
Consumer-to-consumer (C2C) marketing sites allow consumers to buy and sell products and
services among themselves.
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Blooms: Apply
Crane - Chapter 03 #114
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
115.
Which component of the marketing environment pertains to the income, expenditures, and
resources that affect the cost of running a business or household?
A. Ecology
B. The economy
C. Technology
D. Culture
Economy pertains to the income, expenditures, and resources that affect the cost of running a
business and household.
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Blooms: Remember
Crane - Chapter 03 #115
Difficulty: Easy
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
116.
During and immediately after a recession, most retailers see a decrease in consumer
spending. Which environmental force is most likely affected?
A. economic
B. regulatory
C. competitive
D. psychographic
Assessing consumer expectations of an inflationary and recessionary economy is an important
element of environmental scanning. Consumer spending, which accounts for two-thirds of
Canadian economic activity, is affected by expectations of the future.
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Blooms: Apply
Crane - Chapter 03 #116
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
117.
In a 2001 survey conducted immediately after the World Trade Centre attack, 47 percent of
the women who responded to the survey said they were not going to treat themselves to small
luxuries like manicures, and 54 percent said they would not be buying any expensive clothes.
These results of this survey most directly relates to the _____ forces within the marketing
environment.
A. economic
B. regulatory
C. competitive
D. social
Buying intentions are part of the microeconomic environment.
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Blooms: Apply
Crane - Chapter 03 #117
Difficulty: Difficult
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
118.
Surveys of consumer expectations are tracked over time by researchers, who ask such
questions as "Do you expect to be better off or worse off financially a year from now?"
Surveyors record the share of positive and negative responses to this question and related
ones to develop an index, sometimes called a consumer confidence or consumer sentiment
index. These results of these surveys most directly relate to the _____ forces within the
marketing environment.
A. economic
B. regulatory
C. competitive
D. social
Buying intentions are part of the economic environment, as part of the environmental scanning
process of the marketing environment.
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Blooms: Apply
Crane - Chapter 03 #118
Difficulty: Difficult
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
119.
MJ Home Builders Inc. reviews the monthly published ‘Consumer Confidence' report, issued
by the Federal Government, as one consideration when deciding to begin building more
homes. This report would be considered an aspect of _____ forces within the marketing
environment.
A. economic
B. regulatory
C. competitive
D. social
Buying intentions are part of the microeconomic environment.
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Blooms: Apply
Crane - Chapter 03 #119
Difficulty: Difficult
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
120.
The total amount of money made in one year by a person, household, or family unit is known
as:
A. income
B. net income
C. disposable income
D. gross income
Gross income is the total amount of money made in one year by a person, household, or
family unit.
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Blooms: Remember
Crane - Chapter 03 #120
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
121.
As a new graduate, you made a salary of $50,000CDN; after paying taxes to use for such
necessities as food, shelter, clothing, and transportation, you have $22,000CDN left over. This
amount is known as your:
A. income
B. net income
C. disposable income
D. gross income
Disposable income is the money a consumer has left after paying taxes to use for such
necessities as food, shelter, clothing, and transportation.
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Blooms: Apply
Crane - Chapter 03 #121
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
122.
After paying taxes, living expenses, and necessities, you realize you have enough money to
go on a week-long vacation to Turks and Caicos. This money is likely coming from which
account?
A. discretionary income
B. net income
C. disposable income
D. gross income
Discretionary income is the money that remains after paying for taxes and necessities.
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Blooms: Apply
Crane - Chapter 03 #122
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
123.
If a family has Royal Doulton china, Rolex watches, and Lexus automobiles, one could
assume that they have, or had:
A. income
B. net income
C. disposable income
D. discretionary income
Discretionary income is the money that remains after paying for taxes and necessities.
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Blooms: Apply
Crane - Chapter 03 #123
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
124.
Some merchants at the beginning of the 2007 Christmas season were worried consumers
would not be willing to buy as much as they had in years previously. As a result, these
retailers purchased fewer items for their inventories. Manufacturers sold less because the
retailers did not want to have as large an inventory as usual. Manufacturers had to lay people
off because their production was down, and many consumers actually did have less money to
spend. This is an example of how _____ forces directly affect marketing.
A. economic
B. social
C. regulatory
D. technological
The economy, pertains to the income, expenditures, and resources that affect the cost of
running a business and household.
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Blooms: Apply
Crane - Chapter 03 #124
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
125.
Components of a consumer's income include:
A. inflation, recession, and recovery.
B. salary, wages, commissions, and fees.
C. gross, disposable, and discretionary incomes.
D. taxes, perquisites, and salary.
A consumer's ability to buy is related to actual income, which consists of gross, disposable,
and discretionary components.
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Blooms: Remember
Crane - Chapter 03 #125
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
126.
At the end of one year you made $100,000CDN, this income is known as:
A. Inflationary
B. Discretionary
C. Disposable
D. Gross
Gross income is the total amount of money made in one year by a person, household, or
family unit.
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Blooms: Understand
Crane - Chapter 03 #126
Difficulty: Easy
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
127.
Tracy Smith has a disposable income of $1,600. Her disposable income represents 80 percent
of her gross income. What is her gross income?
A. $5,400
B. $3,200
C. $2,000
D. $1,600
Since disposable income is 80 percent of Ms. Smith's gross income: 0.8X = $1,600, X =
$2,000.
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Blooms: Apply
Crane - Chapter 03 #127
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
128.
The money a consumer has left after paying taxes to use for food, clothing, and shelter is
known as:
A. Net
B. Discretionary
C. Disposable
D. Household
Disposable income is the money a consumer has left after paying taxes to use for such
necessities as food, shelter, clothing, and transportation.
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Blooms: Remember
Crane - Chapter 03 #128
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
129.
In recent years, Canadians have spent a decreased portion of their disposable income for
eating out. Two factors account for this trend - the recession of the early '90s and many baby
boom households are in the midst of their child-raising years, causing increased spending on
food at home. This is an example of how _____ forces directly affect marketing.
A. economic
B. governmental
C. technological
D. social
Economic forces include income, expenditures, and resources that affect the cost of running a
household.
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Blooms: Apply
Crane - Chapter 03 #129
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
130.
When taxes rise at a faster rate than does disposable income, what must consumers do?
A. economize
B. spend more
C. go on vacation
D. retire early
Disposable income is the money a consumer has left after paying taxes to use for such
necessities as food, shelter, clothing, and transportation.
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Blooms: Understand
Crane - Chapter 03 #130
Difficulty: Difficult
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
131.
Which product below is likely purchased using discretionary income?
A. a new watch
B. condo fees
C. grocery bill for milk
D. a new suit for work
Discretionary income is used for luxury items such as vacations.
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Blooms: Apply
Crane - Chapter 03 #131
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
132.
Emily had an excellent year as a saleswoman in 2007. She earned $97,000. She paid $17,000
for "necessities" such as mortgage, food, and clothing. She was given a six-week all expenses
paid vacation by the company for her sales performance that had a value of $9,000. Her
provincial and federal income taxes totaled $24,000. What was her discretionary income?
A. $56,000
B. $73,000
C. $80,000
D. $88,000
Discretionary income is the money that remains after paying for taxes and necessities.
Therefore, $97,000 gross income less 17,000 for necessities less 24,000 for taxes equals
$56,000 for discretionary income.
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Blooms: Apply
Crane - Chapter 03 #132
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
133.
Frank has a gross income of $24,000. He pays $4,000 in taxes. His yearly expenditures for
food, shelter, and clothes total $17,250. What is his discretionary income?
A. $2,750
B. $6,750
C. $13,250
D. $20,000
Since discretionary income is the money that remains after paying taxes and necessities from
gross income: Therefore, $24,000 equals gross income, less $4,000 for taxes and less
$17,250 for food, clothing, and shelter equals $2,750 for discretionary income.
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Blooms: Apply
Crane - Chapter 03 #133
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
134.
The owner of your local KFC franchise has had a good year with rising revenues and reduced
operating costs that resulted in a personal income of roughly $100,000. Approximately onethird of that was taken for provincial and federal income taxes, and another third went to pay
for mortgage, car payments, food, clothing, and other necessities. What is the remaining third
called?
A. windfall
B. bonus
C. discretionary income
D. disposable income
Discretionary income is the money that remains after paying for taxes and necessities.
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Blooms: Apply
Crane - Chapter 03 #134
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
135.
Carl and Nancy Johnson prepared a household budget in an attempt to better manage their
money. As part of the budgeting process, Carl and Nancy prepared the following list:
After totaling their necessary expenses, Carl and Nancy subtracted that figure ($1965) from
their monthly income of $4500. The Johnsons were happy to realize that after paying bills
each month, they had $2535 left over. That money that was left after paying expenses is an
example of their _____ income.
A. gross
B. disposable
C. proprietary
D. discretionary
The three components of consumer income are gross, disposable, and discretionary incomes.
Blooms: Apply
Crane - Chapter 03 #135
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
136.
In 2001, the number of people who attended music concerts, plays, and other live
entertainment declined significantly because many people did not believe they had the _____
income to enjoy such events.
A. gross
B. disposable
C. proprietary
D. discretionary
Discretionary income is used for luxury items like theatre and concert tickets.
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Blooms: Apply
Crane - Chapter 03 #136
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
137.
3M is mainly concerned with inventions or innovations from applied science or engineering
research. Therefore, they are most concerned with:
A. Science
B. Innovative theory
C. Technology
D. Cybernetics
Technology refers to inventions or innovations from applied science or engineering research.
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Blooms: Apply
Crane - Chapter 03 #137
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
138.
As a result of fears about bioterrorism in general and anthrax in particular, envelope
manufacturers have designed an envelope with a window at the bottom edge so that a
recipient can examine the contents of the letter without having to open the envelope. This
envelope is expected to have a high level of popularity. It is an example of how _____ forces
can improve the quality of life through marketing.
A. technological
B. political
C. economic
D. ecological
The new envelope design is an example of simple, yet potentially profitable, technology.
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Blooms: Apply
Crane - Chapter 03 #138
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
139.
Business experts agree that new technologies, particularly social networking sites, are
enabling marketers and, more importantly, are ________ customers.
A. enabling
B. empowering
C. exploiting
D. benefiting
Business experts agree that new technologies are enabling marketers and, more importantly,
are empowering customers.
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Blooms: Apply
Crane - Chapter 03 #139
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
140.
One reason some people don't like to buy clothing from Internet retailers is the inability to
know if the clothes will fit once they have arrive at your house. ImageTwin has developed a
scanning system with which it has gathered the measurements of individuals of all different
sizes. All of the information has been fed into a database. Now, when you buy something at
LandsEnd.com, you can see a 3D image of what the item should look like on your body. If
ImageTwin is successful in promoting this product, it could have its strongest influence on the
_____ forces of the marketing environment.
A. economic
B. regulatory
C. technological
D. social
This is an example of an innovation developed through engineering.
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Blooms: Apply
Crane - Chapter 03 #140
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
141.
Which of the following statements concerning technological forces is true?
A. A new wave of technological innovation will not replace existing products and companies.
B. Because technological change is the result of research, it is highly predictable.
C. An advantage of technology is that advances can in no way harm an industry's growth.
D. Advances in technology are having important effects on marketing because they allow
marketers to better understand and serve consumers.
Each new wave of technological innovation can and often does replace existing products and
companies. An example is the slide rule, which was replaced by calculators, which in turn are
being replaced by personal computers. Technological change is the result of research, so it is
difficult to predict. Advances in technology tend to affect the growth of many industries-to their
harm, as when the microfilm information storage and retrieval industry was leapfrogged by
electronic data storage.
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Blooms: Understand
Crane - Chapter 03 #141
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
142.
One-way satellite transmission has been used widely throughout Canada via systems like
WebTV. Consumers will have access to two-way satellite transmission, which is significantly
faster and does not require a dial-up connection. The introduction of two-way satellite
transmission will make systems like WebTV obsolete. This would be an example of how _____
forces affect the marketing environment.
A. economic
B. ecological
C. technological
D. social
Two-way satellite transmission is an innovative technology.
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Blooms: Apply
Crane - Chapter 03 #142
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
143.
Companies recognize that having an online
is necessary to compete in today's marketplace. The items that are listed near the top of a
Google search are there because they are most relevant to your keywords and likely because
of _________________.
A. Viral Marketing
B. Online Search Strategy
C. Marketing Information System
D. Search Engine Optimization
Companies recognize that having a search engine marketing strategy is necessary to reach
online customers. Many marketers use search engine optimization (SEO) so that when you
search for information or items online, the resultant listings for certain keywords are the ones
you see first.
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Blooms: Understand
Crane - Chapter 03 #143
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
144.
Stephen has begun volunteering with an international aid organization. In order to share his
story with friends and colleagues back home, he posts photos online and writes a story with
each one about all of his amazing experiences internationally. This central repository of photos
and stories can best be described as a(n):
A. green marketing
B. social network
C. blog
D. online journal
Web page that contains the online personal journal of an individual.
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Blooms: Apply
Crane - Chapter 03 #144
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
145.
The Hotel Association of Canada suggests that six in ten Canadians look for an
environmentally friendly hotel as part of their travel plans. This is an example of consumers':
A. sensitivity
B. activism
C. environmentalism
D. eco-consciousness
Many Canadians are more sensitive about the impact their consumption has on their natural
environment, and they make their buying decisions accordingly. The Hotel Association of
Canada, for instance, says six in ten Canadians look for an environmentally friendly hotel as
part of their travel plans.
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Blooms: Remember
Crane - Chapter 03 #145
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
146.
Air Canada patrons can go online to calculate the amount of carbon dioxide their trip will
generate and the cost to offset it, which can then be added to their ticket purchase. A trip from
Vancouver to Montreal (return), for example, would cost the flyer an extra $12.80, and this
offset amount would go to planting trees, restoring ecosystems, and assisting in green
community developments. Air Canada is capitalizing on the rising trend of the
______________________ consumer.
A. polluant free
B. sensitive
C. experienced
D. eco-conscious
Another emerging consumer trend is eco-consciousness or going green. Many Canadians are
more sensitive about the impact their consumption has on their natural environment, and they
make their buying decisions accordingly. Air Canada patrons can go online to calculate the
amount of carbon dioxide their trip will generate and the cost to offset it, which can then be
added to their ticket purchase. A trip from Vancouver to Montreal (return), for example, would
cost the flyer an extra $12.80, and this offset amount would go to planting trees, restoring
ecosystems, and assisting in green community developments.
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Blooms: Apply
Crane - Chapter 03 #146
Difficulty: Difficult
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
147.
An information and communication-based electronic exchange environment mostly occupied
by sophisticated computer and telecommunication technologies and digitized offerings is
known as a:
A. electronic communications channel
B. transactional Internet
C. marketspace
D. marketing Internet
Marketspace is an information- and communication-based electronic exchange environment.
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Blooms: Remember
Crane - Chapter 03 #147
Difficulty: Easy
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
148.
Market researchers predicted that credit-card transactions on the Internet exceeded $508
billion in 2008. This is only possible because of the:
A. electronic communications channel
B. transactional Internet
C. marketspace
D. marketing Internet
The marketspace is an information- and communication-based electronic exchange
environment mostly occupied by sophisticated computer and telecommunication technologies
and digitized offerings.
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Blooms: Understand
Crane - Chapter 03 #148
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
149.
Buying a book at www.amazon.ca to give as a birthday present is an example of a(n) _____
transaction.
A. e-commerce
B. Internet relationship
C. bricks-and-mortar
D. electronic partnering
Any activity that uses electronic communications is called electronic commerce. A relationship
requires more than one transaction, and nothing on-going is suggested by this question.
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Blooms: Apply
Crane - Chapter 03 #149
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
150.
Which of the following statements about e-commerce is true?
A. the total value of e-commerce in Canada is estimated to be $50 billion
B. business-to-business makes up the bulk of transactions, as opposed to business-toconsumer
C. business-to-consumer makes up the bulk of transactions, as opposed to business-tobusiness
D. the total value of e-commerce in Canada is estimated to be $10 billion
The total value of e-commerce in Canada is estimated at $65 billion; however, the bulk is B2B
and not B2C.
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Blooms: Understand
Crane - Chapter 03 #150
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
151.
Cisco Systems, the computer networking equipment giant communicates with its distributors,
resellers, and customers using its:
A. intranet
B. partnering software
C. extranets
D. Internet servers
An extranet is an Internet-based technology that permits communication between a company
and its suppliers, distributors, and other partners.
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Blooms: Apply
Crane - Chapter 03 #151
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
152.
Office Depot has developed wireless, handheld computers for its staff. When customers
inquire about a product, a computer-equipped sales associate can pull detailed information on
products right out of the corporate database. Employees at one store can contact employees
at another store for advice or information. This is an example of how _____ can be used to
enhance marketing.
A. intranets
B. partnering software
C. extranets
D. Internet servers
Intranets are a form of private Internet.
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Blooms: Apply
Crane - Chapter 03 #152
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
153.
CanWest MediaWorks and Rogers Wireless have even launched a new TV-type service for
users of Blackberry devices, called BbTV. Consumers received 30- to 90-second clips from
Global TV and Rogers Sportsnet sandwiched between five-second ads. This is one way that
____ forces have jointly influenced marketers.
A. economic and technological
B. technological and competitive
C. competitive and social
D. social and technological
This example of joining together of different companies and service offerings in the digital
advertising space demonstrate leveraging trends of technology to combat competitive
pressures.
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Blooms: Apply
Crane - Chapter 03 #153
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
154.
At Procter & Gamble, a Web-based information-sharing network facilitates the collection and
evaluation of new product ideas from the company's 110,000 employees. This is an example
of how _____ can be used to enhance marketing.
A. intranets
B. partnering software
C. extranets
D. Internet servers
An Intranet is an internet/web-based network used within the boundaries of an organization.
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Blooms: Apply
Crane - Chapter 03 #154
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
155.
A broad concept that includes all electronic-based company activities, both within and outside
the company is known as a
A. e-business
B. partnering software
C. extranets
D. Internet servers
E-business involves all electronic-based company activities, both within and outside the
company.
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Blooms: Apply
Crane - Chapter 03 #155
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
156.
The marketing component of e-commerce is also known as online marketing and:
A. e-marketing
B. partnering software
C. extranets
D. Internet servers
E-marketing, also called online marketing, is the marketing component of e-commerce.
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Blooms: Remember
Crane - Chapter 03 #156
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
157.
Social media has become an integral part of the lives of Canadians, with _________ people
active on Facebook.
A. one in ten
B. one in seven
C. one in five
D. one in three
More than one in three Canadians is an active user of Facebook.
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Blooms: Apply
Crane - Chapter 03 #157
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
158.
When assessing which fast-food restaurant to eat a hamburger at, you are essentially
assessing the ____________ in the fast-food market.
A. substitute markets
B. target markets
C. mixed marketing
D. competition
Competition refers to the alternative firms that could provide a product to satisfy a specific
market's needs.
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Blooms: Apply
Crane - Chapter 03 #158
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
159.
P&G uses an online collaborative tool to discuss confidential feedback on new product ideas
for their employees spread across the country. P&G is using:
A. intranets
B. partnering software
C. extranets
D. Internet servers
An intranet is a private Internet.
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Blooms: Apply
Crane - Chapter 03 #159
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
160.
The competition between McDonald's, Wendy's, and Burger King is known as which form of
competition?
A. Pure competition
B. Cross-market competition
C. Oligopoly
D. Monopolistic competition
Pure competition is a form of competition in which every company has a similar product.
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Blooms: Apply
Crane - Chapter 03 #160
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
161.
Which of the following products would most likely be sold through pure competition?
A. vacation cruises
B. wheat
C. musical instruments
D. electricity
Pure competition is a form of competition in which every company has a similar product.
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Blooms: Apply
Crane - Chapter 03 #161
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
162.
Distribution (in the sense of shipping products) is particularly important to which form of
competition?
A. cross-market competition
B. pure competition
C. oligopoly
D. monopolistic competition
Most companies in a pure competition environment have almost identical products. The
distribution (in the sense of shipping products) is most important element of the marketing mix.
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Blooms: Understand
Crane - Chapter 03 #162
Difficulty: Difficult
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
163.
Paul Avery is a salesperson at the only Ford automobile dealership in Winnipeg, Manitoba.
However, there are several other auto dealerships in town, offering both domestic and foreign
cars and trucks. Paul works hard to keep his customers satisfied because he knows that if his
customers are unhappy, they can simply buy a car from one of the many other comparable
dealers in Winnipeg. This is an example of:
A. pure competition.
B. monopolistic competition.
C. an oligopoly.
D. a monopoly.
Monopolistic competition means there are many sellers who compete with product substitutes.
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Blooms: Apply
Crane - Chapter 03 #163
Difficulty: Difficult
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
164.
In a situation where coffee bean prices doubled, resulting in the price of coffee doubling as
well, consumers may switch to tea, where the prices remained stable. This collective
marketplace likely has which type of competition?
A. pure
B. cross-market
C. oligopoly
D. monopolistic
Monopolistic competition means there are many sellers who compete with product substitutes.
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Blooms: Apply
Crane - Chapter 03 #164
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
165.
Coupons and sales are frequently used marketing tactics in which form of competition?
A. pure competition
B. cross-market competition
C. oligopoly
D. monopolistic competition
In monopolistic competition, the many sellers compete with their products on a substitutable
basis. For example, if the price of Post raisin bran rises too much, consumers may switch to
Kellogg's raisin bran. Coupons and sales are frequently used to reduce customer switching.
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Blooms: Understand
Crane - Chapter 03 #165
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
166.
Most of the catalogue retailers during the 2007 Christmas season offered buyers price
reductions, coupons, two-for-one buying opportunities and/or free delivery. This is because
these catalogue retailers operate in:
A. pure competition.
B. cross-market competition.
C. an oligopoly.
D. monopolistic competition.
In monopolistic competition, the many sellers compete with their products on a substitutable
basis.
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Blooms: Apply
Crane - Chapter 03 #166
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
167.
The competitive situation where Bell Canada, Rogers Wireless, and Telus Mobility control over
90 percent of the mobile phone market is called a(n):
A. monopoly.
B. oligopoly.
C. collusion.
D. monopolistic competition.
An oligopoly occurs when a few companies control the majority of industry sales.
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Blooms: Apply
Crane - Chapter 03 #167
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
168.
The competitive industry where Ford, GM, and Toyota operate in can best be described as:
A. Pure competition
B. Cross-market competition
C. Oligopoly
D. Monopolistic competition
An oligopoly occurs when a few companies control the majority of industry sales.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #168
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
169.
The competitive situation where the LCBO operates in is known as a(n):
A. pure competition
B. cross-market competition
C. monopolistic competition
D. monopoly
Monopolistic competition means there are many sellers who compete with product substitutes.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #169
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
170.
Ralph Moore enjoys soft drinks. He prefers the Seven-Up lemon and lime beverage. He has
heard rumours that the Seven-Up Company will be bought out by one of the industries two
leading and market dominant competitors. Further, he has heard that if that happens, the
Seven-Up brand soft drink will be eliminated since it competes with the competitor's main
lemon and lime offering. What Ralph is experiencing are developments that are most likely to
take place within which type of competitive environment?
A. monopoly
B. oligopoly
C. pure competition
D. monopolistic competition
An industry characterized as an oligopoly is one which has a few companies controlling the
majority of industry sales. The situation described in this question is most likely to occur in that
type of competitive environment.
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Blooms: Apply
Crane - Chapter 03 #170
Difficulty: Difficult
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
171.
Kodak, Fuji, and Agfa control the majority of sales for amateur photographic film. This
exemplifies the competitive situation called:
A. an oligopoly.
B. a trilateral monopoly.
C. unfair trade practice.
D. collusion.
An oligopoly occurs when a few companies control the majority of industry sales.
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Blooms: Apply
Crane - Chapter 03 #171
Difficulty: Difficult
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
172.
Before UPS and FedEx became prominent, Canada Post operated in what type of competition
environment?
A. Pure competition
B. Monopoly
C. Oligopoly
D. Monopolistic competition
Monopolistic competition means there are many sellers who compete with product substitutes.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #172
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
173.
Marketing generally plays a small role in which competitive situation?
A. pure competition
B. a monopoly
C. an oligopoly
D. monopolistic competition
A monopoly occurs when only one firm sells the product. Typically, marketing plays a small
role in this setting because the state or federal government regulates it.
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Blooms: Understand
Crane - Chapter 03 #173
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
174.
Canada is sometimes referred to by some economists as the "land of _________" because it
has several major industries that can be considered _______, including the airline industry and
the banking industry.
A. pure competition, purely competitive
B. oligopoly, oligopolistic
C. monopoly, monopolistic
D. monopolistic competition, monopolistically competitive
Canada is sometimes referred to by some economists as the "land of oligopoly" because it has
several major industries that can be considered oligopolistic, including the airline industry and
the banking industry.
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Blooms: Understand
Crane - Chapter 03 #174
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
175.
When a new mobile phone operator wants to establish themselves in Canada, they must
consider all of the following components or forces that drives competition except:
A. ease of entry
B. the bargaining power of buyers and suppliers
C. monopolistic power
D. the possibility of product substitution
Factors that drive competition include: entry, bargaining power of buyers and suppliers,
existing rivalries, and substitution possibilities.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #175
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
176.
Becoming a new provider of hydroelectric power in Quebec is likely difficult and so existing
providers do not worry much about new competition. Therefore, the ______________ is/are
likely high in this marketplace.
A. "smart" security devices designed for office buildings
B. a set of rules and procedures that firms in an industry present to new firms in the industry
C. business practices or conditions that make it difficult for new firms to enter a market
D. a set of security devices used primarily in automobiles
Barriers to entry are business practices or conditions that make it difficult for new firms to enter
a market.
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Blooms: Apply
Crane - Chapter 03 #176
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
177.
Examples of possible barriers to entry include all of the following with the exception of:
A. capital requirements.
B. advertising expenditures.
C. bargaining power of buyers.
D. switching costs.
Barriers to entry are business practices or conditions that make it difficult for new firms to enter
a market.
Accessibility: Keyboard Navigation
Blooms: Remember
Crane - Chapter 03 #177
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
178.
In considering its competition, a firm must assess the likelihood of new entrants. Additional
producers in the marketplace typically:
A. reduce industry capacity and lower prices.
B. reduce industry capacity and raise prices.
C. increase industry capacity and raise prices.
D. increase industry capacity and lower prices.
Barriers to entry are business practices or conditions that make it difficult for new firms to enter
a market.
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Blooms: Understand
Crane - Chapter 03 #178
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
179.
A new brewery that wants to market beer nationally must deal with the fact that AnheuserBusch spends over $225 million a year on marketing. This statement is an example of _____
for the new national brewery.
A. a barrier to entry
B. the power of buyers
C. the power of suppliers
D. social responsibility
The greater the capital required to enter the industry or the greater the advertising
expenditures in the industry, the higher the barrier to entry. When Anheuser-Busch spends
$225 million on marketing, it makes it very difficult for new smaller competitors to enter the
industry.
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Blooms: Apply
Crane - Chapter 03 #179
Difficulty: Difficult
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
180.
Barriers to entry are business practices or conditions that make it difficult for new firms to enter
the market. Which of the following is not an example of a barrier to entry?
A. capital requirements
B. advertising expenditures
C. distribution access
D. a company's manufacturing cycle
An internal weakness is not necessarily a barrier to entry.
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Blooms: Understand
Crane - Chapter 03 #180
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
181.
Although in Canada reasonable efforts are made to provide a "level playing field" in business,
it would be difficult for a new Canadian automobile company to be established today, primarily
because of:
A. barriers to entry.
B. corporate prejudices.
C. government regulations of competitive practices.
D. lower standards of living.
Barriers to entry include business practices or conditions that make it difficult for new firms to
enter the market. Barriers to entry can be in the form of capital requirements, advertising
expenditures, product identity, distribution access, or switching costs. The higher the expense
of the barrier, the more likely it will deter new entrants.
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Blooms: Apply
Crane - Chapter 03 #181
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
182.
John wants to buy WWE SmackDown vs. Raw, a new video game marketed for the Xbox 360,
a Microsoft and WWE joint venture. The game costs $65 and will only play on an Xbox 360
game console, which will cost him about $450. If he commits to buying the Xbox, it is unlikely
he will buy anything but Xbox games due to:
A. capital requirements.
B. access to distributors.
C. switching costs.
D. product differentiation.
The manufacturer of the video game enjoys high switching costs. Because the game only
plays game cartridges made by its company, customers would have to purchase an entirely
new machine (hence, the switching cost) to play games manufactured for other video game
players.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #182
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
183.
The power of buyers will increase when:
A. the number of buyers is high.
B. the number of buyers is low.
C. there are high switching costs.
D. the product represents a small share of the buyer's total cost.
Buyers are particularly powerful when they are few in number, there are low switching costs,
or the product represents significant share of the buyer's total costs.
Accessibility: Keyboard Navigation
Blooms: Understand
Crane - Chapter 03 #183
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
184.
A supplier gains power when the product is:
A. critical to the buyer, and switching costs are high.
B. relatively unimportant to the seller, and switching costs are low.
C. relatively unimportant to the seller, and switching costs are high.
D. critical to the buyer, and switching costs are low.
A supplier gains power when the product is critical to the buyer and when it has built up the
switching costs.
Accessibility: Keyboard Navigation
Blooms: Understand
Crane - Chapter 03 #184
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
185.
Tiger Direct is an online company that exists only in the online world. Because Tiger Direct
does not have bricks and mortar, it can be referred to as a:
A. self-sufficient player
B. pure-play competitor
C. consumer to business entity
D. consumer generated content provider
While many traditional companies (brick and mortar) also have a presence in the new
marketspace or online world, there are a host of companies that exist only in this new space:
pure-play online competitors.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #185
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
186.
John's Auto Body shop has fewer than 5 employees; the local community business census
specifically refers to his firm as a:
A. small enterprise
B. medium-sized enterprise
C. virtual enterprise
D. micro-enterprise
Micro-enterprise is a firm with fewer than five employees.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #186
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
187.
When the Canadian Government implements new laws about Temporary Foreign Workers on
businesses, they are essentially implementing new:
A. Jurisprudence
B. Regulations
C. Competitive restraints
D. Legal formalizations
Regulations are restrictions that provincial and federal laws place on business with regard to
the conduct of its activities.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #187
Difficulty: Medium
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
188.
In 1998, F. Hoffman-LaRoche Ltd. and BASF AG, two international pharmaceutical
companies, were ordered to pay $725 million in fines for plotting to raise and fix prices of
vitamins used in virtually every home in the U.S. This is an example of how _____ forces affect
the marketing environment.
A. regulatory
B. ecological
C. technological
D. social
The fines and other punishments were levied as a result of price-related legislation.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #188
Difficulty: Medium
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
189.
Forrester Research estimates marketers in 1999 lost about $3 billion in potential sales
because consumers were worried about privacy. Although there are several laws being
considered that would protect consumers' rights to privacy, none have yet made been made
into a law. This is one way _____ forces have not helped the growth of electronic commerce.
A. economic
B. competitive
C. regulatory
D. social
Federal laws or lack thereof are part of the regulatory environment.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #189
Difficulty: Medium
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
190.
Canadian recently put a new bill in place (Bill C-28) to fight against Internet and wireless
spam. The bill refers to spam as:
A. identity theft, phishing, and spyware
B. social media marketing
C. online blogs
D. personal websites
Making Responsible Decisions Box - Canada's Anti-Spam Legislation
Accessibility: Keyboard Navigation
Blooms: Remember
Crane - Chapter 03 #190
Difficulty: Easy
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
191.
Which of the following offences is not a criminal offence under the Competition Act in
Canada?
A. bid rigging.
B. predatory pricing.
C. bait-and-switch selling.
D. price skimming.
Competition Act is a key legislation designed to protect competition and consumers in
Canada.
Accessibility: Keyboard Navigation
Blooms: Remember
Crane - Chapter 03 #191
Difficulty: Easy
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
192.
A new ad from Toys'R'us is directed to children using common Disney characters. This ad
would be allowed in all provinces except:
A. Ontario.
B. British Columbia.
C. Quebec.
D. Alberta.
Advertising directed toward children is prohibited in Quebec.
Accessibility: Keyboard Navigation
Blooms: Understand
Crane - Chapter 03 #192
Difficulty: Easy
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
193.
Although The Beerstore and The LCBO sell the majority of alcohol in Ontario, the
Microbrewery Association of Ontario (MAO) regulates all of the microbreweries to ensure fair
play. The microbrewery industry is one that has:
A. self-regulation.
B. self-policing.
C. industry regulation.
D. self-monitoring.
Self-regulation is an alternative to government control where an industry attempts to police
itself.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #193
Difficulty: Medium
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
194.
The grassroots movement started in the 1960s to increase the influence, power, and rights of
consumers in dealing with institutions is known as
A. Protectionism
B. Environmental scanning
C. Consumerism
D. Ethnocentrism
Consumerism is a grassroots movement started in the 1960s to increase the influence, power,
and rights of consumers in dealing with institutions.
Accessibility: Keyboard Navigation
Blooms: Remember
Crane - Chapter 03 #194
Difficulty: Easy
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
195.
In the 1960s, U.S. President Kennedy developed what is known as the Consumer Bill of
Rights. This legislation was developed to protect consumers from unscrupulous marketers and
guaranteed consumers to four fundamental rights, including the right to be informed, the right
to choose, the right to be protected and the right to be heard. More recently, the Children's
Online Privacy Protection Act (1998) Act has been legislated in the U.S. Many laws such as
these are the results of:
A. consumerism.
B. marketing ethnicity.
C. government intervention.
D. constructive marketing.
Many laws and regulations developed to increase the power, influence, and rights of
consumers dealing with marketers and organizations in general are a result of consumerism.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #195
Difficulty: Medium
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
196.
Recent research shows that 80 percent of Canadians are unaware of this legislation, yet
Canadian consumers are concerned about their privacy:
A. The Privacy Act (PA) and Personal Information Protection and Electronic Documents Act
(PIPEDA)
B. Hazardous Products Act.
C. Board of Trade Act.
D. Food and Drugs Act.
The Privacy Act (PA) and Personal Information Protection and Electronic Documents Act
(PIPEDA) were enacted by the federal government to protect Canadian citizens' privacy and to
ensure that information on individuals is collected, used, and disclosed legally and ethically.
However, recent research shows that 80 percent of Canadians are unaware of this legislation,
yet Canadian consumers are concerned about their privacy.
Accessibility: Keyboard Navigation
Blooms: Remember
Crane - Chapter 03 #196
Difficulty: Medium
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
197.
The largest consumer group working on behalf of the Canadian consumer is:
A. The Consumers Association of Canada.
B. The Consumer Protection Association.
C. The Ralph Nader Association.
D. Consumer and Corporate Affairs.
The Consumers Association of Canada (CAC) is the largest consumer group working on
behalf of Canadians.
Accessibility: Keyboard Navigation
Blooms: Remember
Crane - Chapter 03 #197
Difficulty: Easy
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
198.
All of the organic farms in Ontario have gotten together to establish their own rules,
regulations, and laws to abide to. They are engaging in:
A. industry growth regulation.
B. consumerism.
C. consumer protection.
D. self-regulation.
Self-regulation is an alternative to government control where an industry attempts to police
itself.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #198
Difficulty: Medium
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
199.
The well known self-regulatory group for competitive businesses is the:
A. Consumer and Corporate Affairs.
B. Chamber of Commerce.
C. Better Business Bureau.
D. Federal Trade Commission.
The well-known self-regulatory group is the Better Business Bureau.
Accessibility: Keyboard Navigation
Blooms: Remember
Crane - Chapter 03 #199
Difficulty: Medium
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
200.
The Better Business Bureau:
A. is the best-known federal agency involved in monitoring self-regulation of competing
businesses.
B. has a great deal of legal power to force a company to comply with regulations.
C. is not involved with Internet commerce.
D. is a voluntary alliance of companies whose goal is to help maintain fair practices.
Another well-known self-regulatory group is the Better Business Bureau (BBB). This
organization is a voluntary alliance of companies whose goal is to help maintain fair business
practices. Although the BBB has no legal power, it does try to use "moral suasion" to get
members to comply with its regulations.
Accessibility: Keyboard Navigation
Blooms: Understand
Crane - Chapter 03 #200
Difficulty: Medium
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
201.
One of the problems associated with self-regulation is:
A. the lack of a code of ethics.
B. information overload.
C. corporate espionage opportunities.
D. noncompliance by members.
The problems associated with self-regulation include noncompliance by members and
enforcement.
Accessibility: Keyboard Navigation
Blooms: Understand
Crane - Chapter 03 #201
Difficulty: Difficult
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
202.
Best Buy research revealed that consumers were beginning to see ________ as a critical
element of their electronics purchases.
A. price
B. computing needs
C. service
D. value
Best Buy had observed very high return rates for most of its complex products. Shoppers
would be excited about new products, purchase them and take them home, get frustrated
trying to make them actually work, and then return them to the store demanding a refund. In
fact, Best Buy research revealed that consumers were beginning to see service as a critical
element of the purchase.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #202
Difficulty: Medium
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
203.
Geek Squad must monitor changes in the _________ environment since it continues to change
with respect to electronic transfer of copyrighted materials such as music, movies, and
software.
A. social
B. economic
C. competitive
D. regulatory
A trend is the specific or general direction that a society is headed, which transforms things
from what they were today to something different in the future. A trend makes a difference in
the way people live and work.
Accessibility: Keyboard Navigation
Blooms: Apply
Crane - Chapter 03 #203
Difficulty: Medium
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
204.
Give examples of how the five environmental forces have affected the marketing
environment.
Answers will vary
Feedback: Students' answers to this question will vary. Some suggested answers include:
(1) ECONOMIC - income loss to Napster and other file-sharing services.
(2) SOCIAL - the proliferation of chat rooms and instant messaging has changed how people
communicate and the availability of e-commerce retailers has changed how people shop,
particularly for music.
(3) COMPETITIVE - the retailers that only operate on the Internet are competing with retailers
that only operate offline who are competing with retailers that have both an offline and an
online presence as well concern about new forms of competition.
(4) REGULATORY - concerns about privacy, and protecting intellectual property.
(5) TECHNOLOGICAL - universities are requiring students to have their own PCs, instant
communication with anyone in the world, and the ready access of music.
Blooms: Apply
Crane - Chapter 03 #204
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
205.
What is environmental scanning? How is it used in marketing?
Answers will vary
Feedback: Environmental scanning is a process of acquiring information about events
occurring outside an organization to identify and interpret potential trends. The objective is to
determine if these trends will pose specific opportunities or threats to the firm. This
understanding leads to marketing action.
Blooms: Remember
Crane - Chapter 03 #205
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
206.
What are the major considerations for conducting environmental scanning for a new model of
automobile?
Answers will vary
Feedback: Environmental scanning involves the acquisition of information about events
occurring outside an organization to identify and interpret potential trends that might present
opportunities or threats to the firm. In the case of a new model automobile forces can include
the following:
Social: an aging American population, more money in the hands of younger people, women
making more auto-buying decisions.
Economic: corporate downsizing, higher wages for labourers, inflation, and recessions.
Technological: more advanced engineering driving up the selling prices of cars, alternatives to
personal-car driving.
Competitive: new models by other manufacturers, European prestige, Japanese engineering,
lower prices made possible by cheaper foreign labour.
Regulatory: government controls of imports, laws affecting highway safety, and consumerism.
Blooms: Apply
Crane - Chapter 03 #206
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
207.
How would the following environmental trends influence the success of a manufacturer of
televisions, video, and Blu-Ray players, and related equipment? (1) growing number of older
Canadians, (2) population shifts to remote suburbs and small towns, (3) increase in per capita
income and standard of living, and (4) increased use of communication technology (for
example, growing numbers of households have cable connections).
Answers will vary
Feedback: All four trends are relevant to growing sales of these home entertainment products.
Older Canadians will have more leisure time in retirement to spend at home, some of which
would be spent watching more television. People of all ages living far from centres where they
can attend live sports, music, and other events are likely to watch such entertainment on
television. Increased incomes and communication technology will make it possible for these
consumers to buy high-quality equipment to enjoy better reception. All four trends favour
producers of home entertainment.
Blooms: Apply
Crane - Chapter 03 #207
Difficulty: Medium
Learning Objective: 03-01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regulatory
forces.
208.
Why are marketers interested in baby boomers?
Answers will vary
Feedback: These are people who were born between 1946 and 1964. Many are now past 50,
but not yet retired or in the category of senior citizens. As millions of boomers have aged, their
participation in the workforce and their earnings have increased, making them an important
consumer market. It has been estimated that this group accounts for the majority of purchases
in most consumer product and service categories.
Blooms: Remember
Crane - Chapter 03 #208
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
209.
Define Generation X, and explain why it is important to marketers.
Answers will vary
Feedback: Generation X is the group of Canadians born between 1965 and 1976. Members of
Generation X represent about 15 percent of the Canadian population. It is a generation of
consumers who are not prone to extravagance and are likely to pursue lifestyles and prefer
products and services that are very different from those preferred by baby boomers.
Blooms: Remember
Crane - Chapter 03 #209
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
210.
What changes have occurred in the last 25 years in the structure of the Canadian family?
Answers will vary
Feedback: The types of families in Canada are changing in both size and structure. The
average family size in Canada is three persons. In 1971 one in three families consisted of the
once-typical scenario of a husband working outside the home, with the wife inside the home
with their children. Today, only one in seven families fall into this category. The dual-income
family is the norm in Canada, representing approximately 64 percent of all husband-wife
families.
Blooms: Understand
Crane - Chapter 03 #210
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
211.
What are some examples of the changing roles of men and women? What are their
implications for marketers?
Answers will vary
Feedback: Some of the most notable changes in the roles of women include: a growing
number of women in the workforce, and a growing number of women in managerial positions.
The implications for marketers include changes in consumer roles and purchase decisionmaking. For example, women now purchase 50 percent of all new cars sold in Canada and
men are increasing their involvement in parenting-related purchases.
Blooms: Understand
Crane - Chapter 03 #211
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
212.
What is ethnic marketing? Give an example of product modification that illustrates regional
preferences.
Answers will vary
Feedback: Ethnic marketing programs are combinations of the marketing mix that reflect the
unique attitudes, ancestry, communication preferences, and lifestyles of ethnic Canadians.
Examples will vary.
Blooms: Remember
Crane - Chapter 03 #212
Difficulty: Easy
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
213.
How does the economy affect marketing?
Answers will vary
Feedback: The economy pertains to the income, expenditures, and resources that affect the
cost of running a business. Consumers' expectations and their ability to buy affect their buying
behaviour. Inflation and recession affect the prices marketers must and can charge for their
products, which in turn affects demand for those products. Consumers' disposable incomes
and discretionary incomes are related to overall economic factors, and critically affect their
responsiveness to marketing activities.
Blooms: Understand
Crane - Chapter 03 #213
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
214.
How does technology affect marketing?
Answers will vary
Feedback: Technological forces affect marketing because each new wave of innovation can
displace existing products and companies. Advancing technology such as the continuing
development of computers has a dramatic impact on marketing. For example, computerized
checkout lanes allow supermarkets to monitor daily consumer demand for products. Similarly,
new technology has allowed the development of satellite television transmission and home
satellite dishes, CDs and CD-ROM, the emergence of the Internet or "cyberspace," the power
of microprocessors doubling every 18 months, and greater use of electric cars and alternative
forms of transportation. All the new products related to these technologies will change our
lives and affect the marketing of both old and new products. The challenge for marketers in
this decade will be to keep pace with the possibilities of new technology. Students may have
other examples of changing technology.
Blooms: Understand
Crane - Chapter 03 #214
Difficulty: Medium
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
215.
There are only five major recording labels in the world - Bertelsmann AG's BMG
Entertainment, EMI Recorded Music, Sony Music Entertainment, Time-Warner's Warner Music
Group, and Seagram's Universal Music Group. They are responsible for the large majority of
music recordings that are made. Harry says that the five music companies operate in an
oligopoly. Maryanne says that the five companies operate in monopolistic competition. Explain
how each came to his or her conclusion. Who is correct?
Answers will vary
Feedback: In a monopolistic competition, many sellers compete with their products on a
substitutable basis. Whether five can be viewed as many is certainly debatable, but there is
some argument about substitutability (particularly if you are not particularly interested in
music). The Back Street Boys and 'N Sync appear to many to be interchangeable boy bands.
Harry is correct because oligopolies occur when a few businesses control the majority of
sales.
Blooms: Apply
Crane - Chapter 03 #215
Difficulty: Difficult
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
216.
What are barriers to entry? Define and give examples.
Answers will vary
Feedback: Barriers to entry are business practices or conditions that make it difficult for new
firms to enter a market. Barriers to entry may be in the form of capital requirements,
advertising expenditures, product identity, distribution access, or switching costs. The higher
the expense of the barrier, the more likely it will deter new entrants. For example, IBM once
created a switching cost barrier for companies that considered Apple computer equipment
because IBM had a different programming language for its machines.
Blooms: Remember
Crane - Chapter 03 #216
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
217.
What conditions exist when a competitive analysis reveals powerful buyers?
Answers will vary
Feedback: A competitive analysis must consider the power of buyers. Powerful buyers exist
when they are few in number, there are low switching costs, or the product represents a
significant share of the buyer's total costs. This last factor leads the buyer to exert significant
pressure for price competition.
Blooms: Understand
Crane - Chapter 03 #217
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
218.
Practitioners recognized the need to differentiate businesses before and after the Internet
became an integral part of marketing. They have coined the term "pure-play online
competitors" to describe businesses that uses the Internet in their day-to-operation. List three
ways that a pure play online business differs from the more traditional, pre-Internet business.
Answers will vary
Feedback: These businesses are characterized by:
(1) purely online (no bricks and mortar)
(2) small in size
(3) specialized or niche markets
Blooms: Understand
Crane - Chapter 03 #218
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
219.
The Competition Act is a key piece of legislation in Canada. What is the Act designed to do?
Highlight three important areas covered by the Competition Act.
Answers will vary
Feedback: The Competition Act is designed to protect and to balance the interests of
competitors and consumers. Criminal offences under the act include:
(1) conspiracy (price-fixing)
(2) discriminatory and predatory pricing
(3) price maintenance
(4) misleading and deceptive marketing practices such as double-ticketing or bait and switch
selling
Blooms: Understand
Crane - Chapter 03 #219
Difficulty: Medium
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
220.
Some industries have opted for self-regulation of their members to ensure that each acts fairly.
Discuss potential problems associated with self-regulation.
Answers will vary
Feedback: With self-regulation, there is always a problem with noncompliance. The alliance
created to institute self-regulation typically has no authority to enforce its regulations.
Blooms: Understand
Crane - Chapter 03 #220
Difficulty: Medium
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
221.
Many Canadians are changing their attitudes toward health. List ways in which are seeing
this.
Answers will vary
Feedback: Answers will vary, but will likely including changing eating habits (for the better),
buying more health supplements and medical self-diagnosis kits, healthier beverages
including bottled water and juices.
Blooms: Understand
Crane - Chapter 03 #221
Difficulty: Easy
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
222.
Name the four basic forms of competition and give an example of each.
Answers will vary
Feedback: Examples will vary. They should however reflect the nature of the four forms which
are Pure Competition, Monopolistic Competition, Oligopoly and Monopoly.
Blooms: Understand
Crane - Chapter 03 #222
Difficulty: Easy
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
223.
List and explain the factors that drive competition.
Answers will vary
Feedback: The factors are: Entry, Bargaining Power of Buyers and Suppliers, Existing
Rivalries, and Substitution Possibilities.
Blooms: Understand
Crane - Chapter 03 #223
Difficulty: Medium
Learning Objective: 03-04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small businesses as
competitors.
224.
Describe how marketers might use different ‘ethnic marketing' strategies to engage with
different ethnic groups to sell financial services.
Answers will vary
Feedback: Language, hours of service, advertisements, most common issues faced by
different ethnic groups could all be discussed.
Blooms: Apply
Crane - Chapter 03 #224
Difficulty: Medium
Learning Objective: 03-02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic conditions and
consumer income; affect marketing.
225.
How do you think the Anti-Spam Legislation (Bill C-28) will affect consumers' confidence to
continue using social networking sites as prevalently as they are now?
Answers will vary
Feedback: Refer to Making Responsible Decisions (Canada's Anti-Spam Legislation) for
information that may be cited by students.
Blooms: Apply
Crane - Chapter 03 #225
Difficulty: Medium
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
Chapter 03 Scanning the Marketing Environment Summary
Category
# of Quest
ions
Accessibility: Keyboard Navigation
198
Blooms: Apply
132
Blooms: Remember
51
Blooms: Understand
42
Crane - Chapter 03
226
Difficulty: Difficult
23
Difficulty: Easy
27
Difficulty: Medium
175
Learning Objective: 03-
28
01 Explain how environmental scanning provides information about social; economic; technological; competitive; and regula
tory forces.
Learning Objective: 03-
109
02 Describe how social forces; such as demographics; and cultural and economic forces; such as macroeconomic condition
s and consumer income; affect marketing.
Learning Objective: 03-03 Describe how technological changes are impacting marketers and customers.
34
Learning Objective: 03-
33
04 Discuss the forms of competition that exist in a market; key components of competition; and the impact of small business
es as competitors.
Learning Objective: 03-05 Explain the major legislation that ensures competition and protects consumers in Canada.
21