Chapter 4 Demographics and Social Stratification
Multiple Choice Questions
1. How did the movie “Bring It On” become a success with teens?
A) It was positioned as a movie about cheerleading.
B) It was positioned as a contest between a white cheerleading squad from the
suburbs and a black squad from the inner city.
C) It was positioned as a love story.
D) It positioned the cheerleaders as humans.
E) It was positioned as a movie about football rivalry.
Answer: B Page: 115 Difficulty: moderate
2. Which of the following describe a population in terms of its size, distribution, and
structure?
A) geographics
B) psychographics
C) demographics
D) censographics
E) behaviorgraphics
Answer: C Page: 116 Difficulty: easy
3. Harriett wants to describe the population of a new market in which her firms wishes to
enter. She wants to describe the population in terms of its size, distribution, and
structure. Which of the following should she use?
A) psychographics
B) behaviorgraphics
C) censographics
D) demographics
E) geographics
Answer: D Page: 116 Difficulty: moderate
4. Age, gender, education, occupation, and income are examples of _____ variables.
A) demographic
B) holographic
C) geographic
D) psychographic
E) censographics
Answer: A Page: 116 Difficulty: easy
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Chapter 4 Demographics and Social Stratification
5. What is the approximate population of the United States today?
A) 100 million
B) 249 million
C) 298 million
D) 350 million
E) 498 million
Answer: C Page: 116 Difficulty: moderate
6. Which of the following is NOT a reason why the population of the United States has
grown steadily since 1960?
A) longer life expectancies
B) increasing birth rate
C) immigration
D) baby boomers moving through child-bearing years
E) all of the above are reasons why the population of the United States has grown
Answer: B Page: 116 Difficulty: hard
7. Which of the following is true regarding the size and distribution of the population of
the United States?
A) The population of the United States is approximately 250 million today.
B) The population has grown steadily since 1960 due to increasing birth rates.
C) The growth has not been even throughout the United States.
D) Midwest states, such as Michigan and Illinois, are expected to grow dramatically
in the next ten years.
E) The population of the United States has continued to decrease since 1960.
Answer: C Page: 116 Difficulty: moderate
8. Which of the following is the most widely applied single cue we use to initially
evaluate and define individuals we meet?
A) age
B) income
C) occupation
D) gender
E) education
Answer: C Page: 117 Difficulty: moderate
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Chapter 4 Demographics and Social Stratification
9. Which of the following is strongly associated with occupation?
A) income
B) education
C) age
D) a and b
E) a, b, and c
Answer: D Page: 117 Difficulty: moderate
10. Juan is interested in knowing occupational influences on purchases of laptop
computers. Which of the following occupations are most likely to purchase this type
of product?
A) administrative/managerial
B) technical/clerical/sales
C) precision/craft
D) medical
E) construction/laborer
Answer: A Page: 117 Difficulty: hard
11. Jenny is interested in understanding the behavior of consumers that are classified as
working in technical, clerical, or sales occupations. Which of the following products
is this group LEAST likely to purchase?
A) domestic beer
B) cigarettes
C) diet colas
D) laptop/notebook computers
E) all of the above
Answer: A Page: 117 Difficulty: hard
12. Approximately what percentage of the U.S. population has a high school degree?
A) 25%
B) 40%
C) 50%
D) 75%
E) 85%
Answer: E Page: 117 Difficulty: hard
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13. Approximately what percentage of the U.S. population has completed college?
A) 27%
B) 43%
C) 50%
D) 75%
E) 87%
Answer: A Page: 117 Difficulty: hard
14. Which of the following statements regarding education is FALSE?
A) Education is increasingly critical for a “family wage” job.
B) Traditional high-paying manufacturing jobs that required relatively little education
are rapidly disappearing.
C) Education clearly drives income in today's economy.
D) Education does not influence how one thinks, makes decisions, and relate to
others.
E) Education has a strong influence on one's tastes and preferences.
Answer: D Page: 117-119 Difficulty: hard
15. Taitenger is a famous champagne maker in France. Part of this company's market
research of U.S. consumers looked at education levels of champagne consumers.
What education level is the likely consumer of champagne to have attained?
A) did not graduate high school
B) graduated high school
C) attended college
D) graduated college
E) none of the above
Answer: D Page: 119 Difficulty: moderate
16. A household's purchasing power is a function of which of the following?
A) income and accumulated wealth
B) age and gender
C) income and education
D) occupation and income
E) social class and education
Answer: A Page: 120 Difficulty: moderate
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17. What is the movement called in which companies have expanded opportunities for
less affluent consumers to afford luxury?
A) mass to class
B) class to mass
C) more to all
D) one for all
E) all for one
Answer: B Page: 120 Difficulty: moderate
18. An estimate by the consumer of how much money he or she has available to spend on
nonessentials is known as _____.
A) objective discretionary income (ODI)
B) adjusted gross income (AGI)
C) adjusted discretionary income (ADI)
D) subjective discretionary income (SDI)
E) subjective gross income (SGI)
Answer: D Page: 120 Difficulty: moderate
19. The Martin's household income is $123,000 per year. However, this family estimates
that they have $45,000 available to spend on nonessentials such as vacations and
entertainment. The $45,000 represents the Martin's _____.
A) objective discretionary income (ODI)
B) adjusted gross income (AGI)
C) adjusted discretionary income (ADI)
D) subjective discretionary income (SDI)
E) subjective gross income (SGI)
Answer: D Page: 120 Difficulty: moderate
20. Which of the following statements regarding age is true?
A) Proper age positioning is critical for many products.
B) Age affects a consumer's self-concept and lifestyle.
C) Our age shapes the media we use.
D) Analyzing age cohort groups or generations often provides more meaningful
segments and marketing strategies than merely looking at census age groups.
E) all of the above
Answer: E Page: 120-122 Difficulty: easy
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Chapter 4 Demographics and Social Stratification
21. Which age category is expected to experience the largest percentage increase between
2005 and 2015?
A) < 10
B) 20-29
C) 40-49
D) 60-69
E) > 69
Answer: D Page: 122 Difficulty: moderate
22. Procter & Gamble is a major consumer packaged goods manufacturer. Which age
category provides the greatest opportunity for P&G in terms of growth between 2005
and 2015?
A) < 10
B) 20-29
C) 40-49
D) 60-69
E) > 69
Answer: D Page: 122 Difficulty: moderate
23. One's perceived age, a part of one's self-concept, is known as _____.
A) felt age
B) real age
C) cognitive age
D) perceptual age
E) chronological age
Answer: C Page: 123 Difficulty: moderate
24. Gertrude is 93 years old, but she perceives herself to be about 65 years old. Sixty-five
is Gertrude's _____ age.
A) felt age
B) real age
C) cognitive age
D) perceptual age
E) chronological age
Answer: C Page: 123 Difficulty: moderate
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25. Which of the following variables is associated with cognitive age?
A) health
B) education
C) income
D) social support
E) all of the above
Answer: E Page: 123 Difficulty: easy
26. Sam is a healthy 75 year old man. He is a retired attorney, has a substantial retirement
income, and is a member of several social groups that travel, help others, and
encourage life-long learning. Which of the following is most likely true about Sam?
A) Sam's cognitive age is less than 75.
B) Sam's cognitive age is 75.
C) Sam's cognitive age is greater than 75.
D) Sam's cognitive age is 50.
E) Sam's cognitive age is 85.
Answer: A Page: 123 Difficulty: moderate
27. A(n) _____ is a group of persons who have experienced a common social, political,
historical, and economic environment.
A) census age group
B) age cohort
C) cognitive group
D) chronological group
E) demographic group
Answer: B Page: 123 Difficulty: moderate
28. _____ is the process of describing and explaining the attitudes, values, and behaviors
of an age group as well as predicting its future attitudes, values, and behaviors.
A) Census analysis
B) Demographic analysis
C) Generation analysis
D) Cognitive analysis
E) Cohort analysis
Answer: E Page: 123 Difficulty: moderate
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29. Maria is analyzing the baby boom generation by describing and explaining their
attitudes, values, and behaviors as well as predicting its future, attitudes, values, and
behaviors. Maria is conducting a _____ analysis.
A) cohort
B) generational
C) demographic
D) census
E) cognitive
Answer: A Page: 123 Difficulty: moderate
30. _____ deals with the mature market and is based on the theory that people change
their outlook on life when they experience major life events such as becoming a
grandparent, retiring, losing a spouse, or developing chronic health conditions.
A) Demographics
B) Gerontographics
C) Cognitive psychology
D) Cohort analysis
E) Generational analysis
Answer: B Page: 124 Difficulty: moderate
31. Which of the following is a segment of mature consumers?
A) Healthy Indulgers
B) Ailing Outgoers
C) Healthy Hermits
D) Frail Recluses
E) all of the above
Answer: E Page: 124 Difficulty: easy
32. Which of the following is NOT a segment of mature consumers?
A) Healthy Indulgers
B) Ailing Indulgers
C) Ailing Outgoers
D) Frail Recluses
E) Healthy Hermits
Answer: B Page: 124 Difficulty: moderate
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Chapter 4 Demographics and Social Stratification
33. Which segment of mature consumers is mentally and physically active, both spouses
are generally still alive, has prepared for retirement both financially and
psychologically, is basically content and set to enjoy life, has traded down to a smaller
home, likes convenience, personal service, and high-tech home appliances, and is a
strong market for travel?
A) Healthy Indulgers
B) Ailing Indulgers
C) Ailing Outgoers
D) Frail Recluses
E) Healthy Hermits
Answer: A Page: 124 Difficulty: moderate
34. Willie and Harriet, married for over 30 years, are both in their late 60s and are healthy
and physically active. They have prepared for retirement both financially and
psychologically, have sold their large five bedroom home for a smaller two bedroom
condominium, and take group vacations twice a year. To which segment of mature
consumers would Willie and Harriet belong?
A) Healthy Indulgers
B) Ailing Indulgers
C) Ailing Outgoers
D) Frail Recluses
E) Healthy Hermits
Answer: A Page: 124 Difficulty: moderate
35. _____ have experienced health problems which limit their physical abilities and
frequently their financial capability. This segment is also a key market for retirement
communities and assisted-living housing. While seniors in this group acknowledge
their limits, they also maintain a positive self-esteem and seek to get the most out of
life. Independence and socializing are important as is remaining stylish in their dress.
A) Healthy Hermits
B) Ailing Indulgers
C) Ailing Outgoers
D) Frail Recluses
E) Healthy Recluses
Answer: C Page: 124 Difficulty: moderate
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Chapter 4 Demographics and Social Stratification
36. Barbara is a great grandmother with a few health problems that require her to live in
assisted-living housing. However, she does not let her physical and economic
limitations affect her self-esteem. She remains independent, socializes in several
seniors' groups, and still likes to remain stylish in her dress. Barbara would be
classified as a(n) _____.
A) Healthy Hermit
B) Ailing Outgoer
C) Ailing Hermit
D) Frail Recluse
E) Healthy Indulger
Answer: B Page: 124 Difficulty: moderate
37. People in this group retain their physical health, but life events (i.e., death of a spouse)
have reduced their self-concept. They have reacted by becoming withdrawn, and
many resent the isolation and the feeling that they are expected to act like old people.
They prefer clothing styles that are popular with other seniors and will pay a premium
for well-known brands. They tend to stay in homes in which they raised their families,
and they are an important part of the do-it-yourself market. Which segment is this?
A) Healthy Indulgers
B) Ailing Outgoers
C) Healthy Hermits
D) Frail Recluses
E) Ailing Indulgers
Answer: C Page: 124 Difficulty: moderate
38. James is a widower in good health that lives in the home he and his wife raised their
five children. However, he has reacted to his wife's death by becoming withdrawn and
feels isolated. He spends much of his time fixing up his house. James is best
described as a(n) _____.
A) Healthy Indulger
B) Ailing Outgoer
C) Healthy Hermit
D) Frail Recluse
E) Ailing Hermit
Answer: C Page: 124 Difficulty: moderate
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Chapter 4 Demographics and Social Stratification
39. This segment of mature consumers has accepted their old-age status and have adjusted
their lifestyles to reflect physical reduced capabilities and social roles. They focus on
becoming spiritually stronger, tend to stay at home, and are a major market for health
care products. Locational convenience is often a critical factor for this group. Which
group is this?
A) Healthy Indulger
B) Ailing Outgoer
C) Healthy Hermit
D) Frail Recluse
E) Ailing Hermit
Answer: D Page: 124-125 Difficulty: moderate
40. Myrtle has accepted her old-age status and has adjusted her lifestyle to reflect her
reduced physical capabilities and social role. She focuses on becoming spiritually
stronger and tends to stay at home. Which segment best describes Myrtle?
A) Healthy Indulger
B) Ailing Outgoer
C) Healthy Hermit
D) Frail Recluse
E) Ailing Hermit
Answer: D Page: 124-125 Difficulty: moderate
41. For which group of mature consumers is a convenient location of their physician most
important?
A) Healthy Indulger
B) Ailing Outgoer
C) Healthy Hermit
D) Frail Recluse
E) Ailing Hermit
Answer: D Page: 124 Difficulty: moderate
42. Individuals born before 1930 belong to which generation?
A) pre-Depression generation
B) Depression generation
C) baby boom generation
D) Generation X
E) Generation Y
Answer: A Page: 124 Difficulty: moderate
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Chapter 4 Demographics and Social Stratification
43. Harold was born in 1923. He entered young adulthood during World War II, and
served in the Navy during that war. He has witnessed radical social, economic, and
technological change in his lifetime. To which generation does he belong?
A) pre-Depression generation
B) Depression generation
C) baby boom generation
D) Generation X
E) Generation Y
Answer: A Page: 124 Difficulty: moderate
44. Consumers 55 years of age and over constitute the _____ market.
A) baby boom
B) mature
C) generational
D) gerontological
E) aging
Answer: B Page: 125 Difficulty: easy
45. Elsie and her two sisters are all in their mid- to late-sixties. They are part of the _____
market.
A) boom
B) mature
C) generational
D) gerontological
E) aging
Answer: B Page: 125 Difficulty: moderate
46. Which generation is NOT part of the mature market?
A) pre-Depression
B) Depression
C) Generation X
D) baby boom
E) all of the above are part of the mature market
Answer: C Page: 125 Difficulty: moderate
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47. Which of the following is a segmentation approach to the mature market that
incorporates aging processes and life events related to the physical health and mental
outlook of older consumers?
A) Gerontographics
B) Cognitive psychology
C) Demographics
D) Ageographics
E) Censographics
Answer: A Page: 125 Difficulty: moderate
48. Which cohort was born between 1930 and 1945?
A) pre-Depression generation
B) Depression generation
C) baby boom generation
D) Generation X
E) Generation Y
Answer: B Page: 126 Difficulty: moderate
49. Xavier was born in 1940. He was too young to remember World War II, and he
matured during the prosperous years of the 1950s and early 1960s. His favorite singer
was, and still is, Elvis Presley. To which generation does he belong?
A) pre-Depression generation
B) Depression generation
C) baby boom generation
D) Generation X
E) Generation Y
Answer: B Page: 126 Difficulty: moderate
50. Which generation “invented” rock and roll and grew up with music and television as
important parts of their lives?
A) pre-Depression generation
B) Depression generation
C) baby boom generation
D) Generation X
E) Generation Y
Answer: B Page: 126 Difficulty: moderate
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Chapter 4 Demographics and Social Stratification
51. Which generation refers to those individuals born during the dramatic increase of
births (i.e., almost 80 million baby births) between the end of World War II and 1964?
A) pre-Depression generation
B) Depression generation
C) baby boom generation
D) Generation X
E) Generation Y
Answer: C Page: 127 Difficulty: easy
52. John was born in 1955, and he has only known prosperity in his lifetime. He
remembers when President Kennedy was assassinated, primarily because his family
purchased their first color television not long after that event. While he remembers the
Vietnam War, he was too young to be drafted. To which generation does he belong?
A) pre-Depression generation
B) Depression generation
C) baby boom generation
D) Generation X
E) Generation Y
Answer: C Page: 127 Difficulty: moderate
53. Which generation is considered to be more self-centered, individualistic, economically
optimistic, skeptical, suspicious of authority, and focused on the present than other
generations?
A) pre-Depression generation
B) Depression generation
C) baby boom generation
D) Generation X
E) Generation Y
Answer: C Page: 127-128 Difficulty: moderate
54. Robert and his wife, Jan, were both born in the 1950s. The last of their three children
will graduate from college soon, which is leaving them with increased discretionary
income and time. To which generation do Robert and Jan belong?
A) pre-Depression generation
B) Depression generation
C) baby boom generation
D) Generation X
E) Generation Y
Answer: C Page: 128 Difficulty: moderate
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Chapter 4 Demographics and Social Stratification
55. Which of the following is a reason why more baby boomers continue to work longer
than previous generations?
A) necessary due to a low income of some baby boomers
B) necessary due to a poor pension plan
C) due to changes in Social Security increasing the age at which full benefits can be
drawn
D) increased desire to stay active in interesting and rewarding careers
E) all of the above
Answer: E Page: 128 Difficulty: easy
56. Which generation was born between 1965 and 1976?
A) pre-Depression generation
B) Depression generation
C) baby boom generation
D) Generation X
E) Generation Y
Answer: D Page: 129 Difficulty: moderate
57. Nick was born in 1972. As long as he can remember, his mother worked outside the
home. When he was 12, his parents divorced, which was hard on him, but the same
thing happened to several of his friends. When both of his parents remarried, his view
of a family changed to include all of his step-sisters and brothers. To which
generation does he belong?
A) pre-Depression generation
B) Depression generation
C) baby boom generation
D) Generation X
E) Generation Y
Answer: D Page: 129 Difficulty: moderate
58. Generation X is also referred to as the _____ generation.
A) baby bust
B) baby boomlet
C) mini baby boom
D) echo boom
E) boomerang
Answer: A Page: 129 Difficulty: moderate
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Chapter 4 Demographics and Social Stratification
59. Which generation was the first to gain a very broad view of a family, which may
include parents, siblings, stepparents, half-siblings, close friends, live-in lovers, and
others?
A) Depression generation
B) baby boom generation
C) Generation X
D) Generation Y
E) Millennials
Answer: C Page: 129 Difficulty: moderate
60. Roger is an adult that has moved back in with his parents. He doesn't believe in
sacrificing time, energy, and relations to the extent he sees older workers do for the
sake of career or economic advancement. He has a master's degree but does not want
to work for a large corporation. To which generation does Roger most likely belong?
A) pre-Depression generation
B) Depression generation
C) baby boom generation
D) Generation X
E) Generation Y
Answer: D Page: 129-130 Difficulty: moderate
61. Individuals born between 1977 and 1994 belong to which generation?
A) baby boom
B) Generation X
C) Generation Y
D) Generation Z
E) Millennial generation
Answer: C Page: 131 Difficulty: moderate
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Chapter 4 Demographics and Social Stratification
62. Amie was born in 1991. Her mother is a college professor, and her father is an
attorney. She's not sure what she wants to do when she grows up, but she knows she
will go to college and embark on a career of her own. She was amazed when her
grandmother told her that women really couldn't do that when she was young. If a
woman did work, choices were usually limited to becoming a teacher, a secretary, or a
nurse. Her grandmother told her that she was a secretary, but after she started having
children, she left the workforce and stayed home to raise her children, which was
common for most women at that time. That concept was totally foreign to Amie. To
which generation does she belong?
A) baby boom
B) Generation X
C) Generation Y
D) Generation Z
E) Millennial generation
Answer: C Page: 131 Difficulty: moderate
63. The children of the original baby boomers are known as _____.
A) the baby bust generation
B) Generation X
C) Generation Y
D) Generation Z
E) the Millennial generation
Answer: C Page: 131 Difficulty: moderate
64. Generation Y is sometimes referred to as the _____.
A) baby bust generation
B) echo boom
C) boomerangs
D) baby boomlet
E) step-boomers
Answer: B Page: 131 Difficulty: moderate
65. Placing ads in videogames is known as _____.
A) video advertising
B) integrated advertising
C) advergaming
D) message integration
E) entertainment integration
Answer: C Page: 133 Difficulty: moderate
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Chapter 4 Demographics and Social Stratification
66. The newest generation born after 1994 is referred to as _____.
A) the baby boom generation
B) Generation X
C) Generation Y
D) Generation Z
E) Millennials
Answer: E Page: 134 Difficulty: moderate
67. Erin is 12 years old. While label is appropriate for Erin?
A) little kid
B) big kid
C) tween
D) teenager
E) young adult
Answer: C Page: 134 Difficulty: moderate
68. One's position relative to others on one or more dimensions valued by society is
known as one's _____.
A) societal rank
B) social status
C) social standing
D) social sphere
E) social realm
Answer: A Page: 135 Difficulty: moderate
69. A hierarchical division of a society into relatively distinct and homogeneous groups
with respect to attitudes, values, and lifestyles is known as a _____.
A) social stratum
B) social class system
C) caste system
D) social continuum
E) societal ranking
Answer: B Page: 135 Difficulty: moderate
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Chapter 4 Demographics and Social Stratification
70. The more consistent an individual is on all status dimensions, the greater the degree of
_____ for the individual.
A) status maturity
B) status permanence
C) status inflexibility
D) status crystallization
E) status flexibility
Answer: D Page: 136 Difficulty: hard
71. Carl is a physician earning $200,000 per year. Using the Coleman-Rainwater system,
identify the social class to which Carl belongs
A) upper-upper
B) lower-upper
C) upper-middle
D) middle
E) working
Answer: C Page: 136 Difficulty: moderate
72. Which term describes consumers' purchase and use of automobiles, homes, yachts,
clothes, and so forth primarily to demonstrate their great wealth?
A) conspicuous consumption
B) outrageous consumption
C) obnoxious consumption
D) nouveaux consumption
E) “blue blood” consumption
Answer: A Page: 137 Difficulty: easy
73. Nouveaux riche is most commonly associated with the _____.
A) upper-middle class
B) middle class
C) lower-upper class
D) upper-upper class
E) none of the above
Answer: C Page: 138 Difficulty: moderate
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Chapter 4 Demographics and Social Stratification
74. The upper-middle class achieve their social position primarily _____.
A) through their unusually high incomes
B) by their occupation and career orientation
C) through inherited position
D) through their children's accomplishments
E) none of the above
Answer: B Page: 138 Difficulty: hard
75. Which social class consists of skilled and semiskilled factory, service, and sales
workers?
A) upper-middle
B) middle class
C) working class
D) upper-lower class
E) lower-lower class
Answer: C Page: 140 Difficulty: moderate
76. Buzz is a self-employed construction worker. He is proud of his ability to do “real
work” and sees himself as the often-unappreciated backbone of America. He dislikes
the upper-middle class and prefers products and stores positioned toward his socialclass level. Which term best describes Buzz?
A) working-class stiff
B) “blue blood” class
C) white collar worker
D) working-class aristocrat
E) no-collar worker
Answer: D Page: 141 Difficulty: hard
77. Which social class consists of individuals who are poorly educated, have very low
incomes, and work as unskilled laborers?
A) lower-lower class
B) upper-lower class
C) working class
D) lower-middle class
E) middle class
Answer: B Page: 141 Difficulty: moderate
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Chapter 4 Demographics and Social Stratification
78. Earl did not complete high school and works as a janitor at two jobs. His income is
very low, and he does not possess any skills to help him get a better paying job.
Which social class best describes Earl?
A) lower-lower class
B) upper-lower class
C) working class
D) lower-middle class
E) middle class
Answer: B Page: 141 Difficulty: moderate
79. Which social class has low incomes and minimal education, may be unemployed for
long periods of time, and is the major recipient of government support and services
provided by non-profit organizations?
A) lower-lower class
B) upper-lower class
C) working class
D) lower-middle class
E) middle class
Answer: A Page: 143 Difficulty: moderate
80. What two basic approaches are used to measure social status?
A) primary and secondary measures
B) single-item and multi-item indexes
C) position and status measures
D) income and occupation indexes
E) income and education measures
Answer: B Page: 144 Difficulty: moderate
81. Which of the following is NOT a common single-item index of social class?
A) education
B) occupation
C) income
D) age
E) all of the above are common single-item indexes of social class
Answer: D Page: 144 Difficulty: hard
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Chapter 4 Demographics and Social Stratification
82. Which is NOT a factor used in the Warner's Index of Status Characteristics (ISC)?
A) occupation
B) source of income
C) education
D) house type
E) dwelling area
Answer: C Page: 144-145 Difficulty: hard
True/False Questions
83. Demographics describe a population in terms of its size, distribution, and structure.
Answer: True Page: 116 Difficulty: easy
84. Education is probably the most widely applied single cue we use to initially evaluate
and define individuals we meet.
Answer: False Page: 117 Difficulty: moderate
85. Over 50 percent of Americans have completed college.
Answer: False Page: 117 Difficulty: moderate
86. Education provides a complete explanation for consumption patterns.
Answer: False Page: 119 Difficulty: easy
87. Income enables purchases but does not generally cause or explain them.
Answer: True Page: 120 Difficulty: moderate
88. Adjusted gross income (AGI) is an estimate by the consumer of how much money he
or she has available to spend on nonessentials.
Answer: False Page: 120 Difficulty: moderate
89. Gerontographics is one segmentation approach to the mature market that incorporates
aging processes and life events to the physical health and mental outlook of older
consumers.
Answer: True Page: 125 Difficulty: moderate
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Chapter 4 Demographics and Social Stratification
90. The Depression generation is composed of those individuals born before 1930.
Answer: False Page: 126 Difficulty: moderate
91. Baby boomers are characterized by high education levels, high incomes, and dualcareer households.
Answer: True Page: 128 Difficulty: easy
92. The baby boom generation is the first American generation to seriously confront the
issue of “reduced expectations.”
Answer: False Page: 129 Difficulty: hard
93. The children of the original baby boomers, generation Y born between 1977 and 1994,
are sometimes referred to as the “baby bust” generation.
Answer: False Page: 131 Difficulty: moderate
94. The newest generation born after 1994 is known as the Millennials.
Answer: True Page: 134 Difficulty: easy
95. Many upper-upper class consumers exhibit “conspicuous consumption.”
Answer: False Page: 137 Difficulty: moderate
96. The Hollingshead Index of Social Position (ISP) is based on four socioeconomic
factors: occupation, source of income, house type, and dwelling area.
Answer: False Page: 144-145 Difficulty: hard
97. The U.S. Bureau of the Census uses a three-factor social status index based on
occupation, income, and education.
Answer: True Page: 145 Difficulty: hard
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Chapter 4 Demographics and Social Stratification
Essay Questions
98. Define the term “demographics,” explain why it is important to understand
demographics in marketing, and discuss the major demographic variables of interest to
marketers.
Page: 116-122 Difficulty: moderate
Answer:
Demographics describe a population in terms of its size, distribution, and structure.
Demographics influence consumption behaviors both directly and by affecting other
attributes of individuals, such as their personal values and decision styles. Marketers
frequently segment markets on the basis of demographics and use that information to
select appropriate media and develop effective promotional themes. Population size
and distribution are important to understand, and regions of the country serve as
important subcultures whose members have unique tastes and preferences.
Occupation is probably the most widely applied single cue we use to initially evaluate
and define individuals we meet, and it influences all aspects of the consumption
process. Education is another demographic variable of interest to marketers because
it influences what one can purchase by partially determining one's income and
occupation and has a strong influence on one's tastes and preferences. Income enables
purchases but does not generally cause or explain them. Thus, income is generally
more effective as a segmentation variable when used in conjunction with other
demographic variables. Finally, age positioning is critical for many products. Age
influences the consumption of many products. While age groups as defined by the
census are often a useful way to understand and segment a market, analyzing age
cohort groups or generations will often provide more meaningful segments and
marketing strategies.
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Chapter 4 Demographics and Social Stratification
99. Name and briefly describe the six generations discussed in this chapter.
Page: 123-134 Difficulty: hard
Answer:
Pre-Depression Generation--composed of those individuals born before 1930. These
individuals grew up in traumatic times and have witnessed radical social, economic,
and technological changes. As a group, they are conservative and concerned with
financial and personal security.
Depression Generation--cohort born between 1930 and 1945. They were small
children during the Depression and World War II and matured during the prosperous
years of the 1950s and early 60s. Most have or will soon retire and have accumulated
substantial wealth. Many are still in excellent health and are an important target
segment for the travel industry.
Baby Boom Generation--born during the dramatic increase of births between the end
of World War II and 1964. Most of this group grew up during the prosperous 1950s
and 1960s. They are considered to be more self-centered, individualistic,
economically optimistic, skeptical, suspicious of authority, and focused on the present
than other generations. They are characterized by high education levels, high
incomes, and dual-career households.
Generation X--often referred to as the baby bust generation and was born between
1965 and 1976. It is smaller than the baby boom generation and reached adulthood
during difficult economic times. They have a broad view of family and is the first
generation to seriously confront the issue of “reduced expectations.” This generation
is more highly educated than previous generations and tends to blame the baby boom
generation for the difficult future they see for themselves.
Generation Y--children of the original baby boomers and were born between 1977
and 1994. They are sometimes referred to as the “echo boom.” Overall, it is the first
generation to grow up with virtually full-employment opportunities for women, with
dual-income households the standard, and a wide array of family types seen as normal.
This generation is characterized by a strong sense of independence and autonomy and
is assertive, self-reliant, emotionally and intellectually expressive, innovative, and
curious.
Millennials--born after 1994. They will likely continue trends in increased education,
diversity, and technology usage. The oldest of this group, now in the so-called
“tween” years (8-14) have many of the same characteristics as the teens of Generation
Y.
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Chapter 4 Demographics and Social Stratification
100. You just started your first marketing job, and your supervisor wants you to become
more knowledgeable of the mature market because she sees this market as a growing
opportunity. Name and describe the four segments of the mature market that have
been identified through gerontographics.
Page: 124-125 Difficulty: hard
Answer:
Healthy Indulgers --This segment is physically and mentally healthy, has the most in
common with the baby boomers than any other segment, and will increasingly be
composed of baby boomers as they age. Both spouses are generally still alive, and
they have prepared for retirement both financially and psychologically. They are
content and set to enjoy life and often sell their large family homes and move into
smaller dwellings. They like activities, convenience, personal service, and high-tech
home appliances and are a strong part of the market for cruises and group travel.
Ailing Outgoers--They have experienced health problems which limit their physical
abilities and frequently their financial capability. They are a key market for retirement
communities and assisted-living housing. They acknowledge their limits, maintain
positive self-esteem, and seek to get the most out of life. Independence and
socializing are important as is remaining stylish in their dress. Limited funds and
physical ability are issues. Value pricing and discounts are viewed positively as are
ease and convenience.
Healthy Hermits--These individuals retain their physical health, but life events (i.e.,
death of a spouse) have reduced their self-concept and have caused them to become
withdrawn. Many resent the isolation and the feeling that they are expected to act like
old people, and they do not want to stand out. They prefer clothing styles that are
popular with other seniors and will pay a premium for well-known brands. They tend
to stay in the homes in which they raised their families and are an important part of the
do-it-yourself market.
Frail Recluses--They have accepted their old-age status and have adjusted their
lifestyles to reflect reduced physical capabilities and social roles. They focus on
becoming spiritually stronger and tend to stay at home. They are a major market for
health care products, home exercise and health testing equipment, and emergency
response systems. Locational convenience is a critical factor for this group.
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Chapter 4 Demographics and Social Stratification
101. Define the term “social class system” and list the social classes relevant in the United
States.
Page: 135-136 Difficulty: easy
Answer:
Social class system is defined as a hierarchical division of a society into relatively
distinct and homogeneous groups with respect to attitudes, values, and lifestyles. The
social structure in the United States is composed of: Upper Americans (upper-upper,
lower-upper, and upper-middle class), Middle Americans (middle class and working
class), and Lower Americans (upper-lower and lower-lower).
102. Discuss the two basic approaches to measuring social status.
Page: 144-146 Difficulty: hard
Answer:
The two basic approaches to measuring social status: a single-item index and a multiitem index. Single-item indexes estimate social status on the basis of a single
dimension. The three most common single-item indexes are education, occupation,
and income. Researchers have developed multi-item indexes to measure social class.
The Hollingshead Index of Social Position (ISP) is a two-item index that is well
developed and widely used and is developed using an occupation scale and an
education scale. Another multi-item scale of social status is Warner's Index of Status
Characteristics (ISC), which is based on four socioeconomic factors: occupation,
source of income, house type, and dwelling area. The U.S. Bureau of the Census uses
a three-factor social status index based on occupation, income, and education and is
referred to as the Socioeconomic Status Scale (SES).
105