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Marketing Management - 12th Edition - Kotler/Keller
Part 2: Capturing Marketing Insights
Chapter 3: Gathering Information and Scanning the Environment
Chapter 3: Gathering Information and Scanning the Environment
GENERAL CONCEPT QUESTIONSMultiple Choice
1.The major responsibility for identifying significant marketplace changes falls to the ________.
a.U.S. Department of Labor
b.companys marketers
c.American Marketing Association
d.industry lobby groups found in Washington, D.C.
e.marketing research industry
Answer: b
Page: 72
Level of difficulty: Easy
2.Marketers have extensive information about how consumption patterns vary across countries. On a per capita basis within Western Europe, the ________ smoke the most cigarettes.
a.Swiss
b.Greeks
c.Irish
d.Austrians
e.French
Answer: d
Page: 72
Level of difficulty: Hard
3.All of the following questions EXCEPT ________, would be considered to be forms of information needs probes.
a.What decisions do you regularly make?
b.What information do you need to make decisions?
c.What data analysis programs would you want?
d.What magazines and trade reports would you like to see on a regular basis?
e.What products would be most closely matched to consumer needs?
Answer: e
Page: 73
Level of difficulty: Medium
4.________ consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.
a.A marketing information system
b.A marketing research system
c.A marketing intelligence system
d.A promotional campaign
e.A marketing database
Answer: a
Page: 73
Level of difficulty: Medium
5.The companys marketing information system should be a cross between what managers think they need, what managers really need, and ________.
a.what the marketing research department is able to do
b.what consumers are willing to share
c.what the competition is doing
d.what is acceptable industry practice
e.what is economically feasible
Answer: e
Page: 73
Level of difficulty: Medium
6.Marketing managers rely on internal reports. By analyzing this information, they can spot ________.
a.micro-markets
b.opportunities and problems
c.macro-markets
d.competitive strategies
e.consumer demographic units
Answer: b
Page: 73
Level of difficulty: Easy
7.The heart of the internal records system is the ________.
a.database
b.asset acquisition process
c.order-to-payment cycle
d.service consideration
e.information liquidity ratio
Answer: c
Page: 73
Level of difficulty: Hard
8. When a marketer mines his or her companys database, fresh insights can be gained into neglected customer segments, ________, and other useful information.
a.recent customer trends
b.long-term competitive trends
c.possible new inventions
d.possible new technologies
e.new primary data possibilities
Answer: a
Page: 74
Level of difficulty: Medium
9.The internal records system supplies results data, but the marketing intelligence system supplies ________ data.
a.concurrent
b.secondary
c.research
d.happenings
e.premium
Answer: d
Page: 74
Level of difficulty: Medium
10.A ________ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment. a.marketing research system
b.marketing information system
c.product management system
d.marketing intelligence system
e.vertical system
Answer: d
Page: 74
Level of difficulty: Medium
11. A company can take several steps to improve the quality of its marketing intelligence. If the company purchases competitive products for study, attends open houses and trade shows, and reads competitors published reports and stockholder information, the company is using ________ to improve the quality of its marketing intelligence.
a.sales force surrogates
b.intermediaries
c.external networks
d.advisory panels
e.customer feedback systems
Answer: c
Pages: 7475
Level of difficulty: Hard
12. All of the following would be considered to be steps to improve the quality of marketing intelligence in a company EXCEPT ________.
a.a company can train and motivate the sales force to spot and report new developments
b.a company can use guerrilla tactics such as going through a competitors trash
c.a company can motivate intermediaries to pass along important information
d.a company can network externally
e.a company can purchase information from outside suppliers
Answer: b
Pages: 7476
Level of difficulty: Easy
13.The 2000 U.S. census provides an in-depth look at the population swings, demographic groups, regional migrations, and changing family structure of 281+ million people. Which of the following steps to improve the quality of company marketing intelligence system would be most closely associated the above illustration?
a.A company can purchase information from outside suppliers.
b.A company can take advantage of government data sources.
c.A company can use online customer feedback systems to collect data.
d.A company can network externally.
e.A company can use its sales force to collect and report data.
Answer: b
Page: 76
Level of difficulty: Easy
14. There are four main ways that marketers can find relevant online information on competitors products and weaknesses, and summary comments and overall performance rating of a product, service, or supplier. ________ is(are) a type of site that is concentrated in financial services and high-tech products that require professional knowledge.
a.Independent customer goods and service reviews
b.Distributor or sales agent feedback sites
c.Combo-sites offering customer reviews and expert opinions
d.Customer complaint sites
e.Shopping bot service sites
Answer: c
Page: 77
Level of difficulty: Hard
15.A ________ is unpredictable, short-lived, and without social, economic, and political significance.a.fad
b.fashion
c.trend
d.megatrend
e.style
Answer: a
Page: 77
Level of difficulty: Medium
16.A ________ is a direction or sequence of events that has some momentum and durability; the shape of the future is revealed and many opportunities are provided.
a.fad
b.fashion
c.trend
d.megatrend
e.style
Answer: c
Page: 77
Level of difficulty: Hard
17.________ have been described as large social, economic, political and technological changes [that] are slow to form, and once in place, they influence us for some timebetween seven and ten years, or longer.
a.Fads
b.Fashions
c.Trends
d.Megatrends
e.Styles
Answer: d
Page: 77
Level of difficulty: Medium
18.Which of the following minority groups in the United States has been associated with one of the ten megatrends shaping the consumer landscape?
a.African Americansb.Asian Americans
c.European Americans
d.Hispanic Americans
e.Middle Eastern Americans
Answer: d
Page: 78
Level of difficulty: Medium
19.The beginning of the new century brought a series of new challenges. All of the following would be considered to be among those challenges EXCEPT ________.
a.a deterioration of innovative ideas
b.steep decline of the stock market
c.increasing unemployment
d.corporate scandals
e.the rise of terrorism
Answer: a
Page: 78
Level of difficulty: Medium
20.With the rapidly changing global picture, the firm must monitor six major forces. All of the following would be among those forces EXCEPT ________.
a.demographic
b.economic
c.social-cultural
d.natural
e.promotional
Answer: e
Page: 78
Level of difficulty: Easy
21. The main demographic force that marketers monitor is(are) ________.
a.suppliers
b.competitors
c.communication (such as advertising)
d.government reports dealing with birth rates
e.population
Answer: e
Page: 79
Level of difficulty: Easy
22.The population explosion has been a source of major concern. Unchecked population growth and consumption could eventually result in all of the following EXCEPT ________.
a.insufficient food supply
b.depletion of key minerals
c.overcrowding
d.restrictions on competition
e.pollution
Answer: d
Page: 79
Level of difficulty: Easy
23.One impact of explosive population growth is illustrated by the case of China. The Chinese government passed regulations limiting families to one child. One consequence of these regulations is that ________.
a.the children are so fussed over and spoiled that they become little emperorsb.school enrollments are dropping
c.the fledgling automotive business in China will not have customers in a few years
d.open rebellion is being preached
e.child-oriented businesses have few customers
Answer: a
Page: 80
Level of difficulty: Medium
24.A significant fact about population growth and population shifts is that in 2004 or 2005, ________.
a.the youth market will exceed that of the adult market
b.people over the age of 60 will outnumber those under five years of age
c.baby boomers will be eclipsed by Gen X young adults
d.most age group segments will be about equal
e.Gen Y young adults will surpass the baby boomers as the largest age segment
Answer: b
Page: 80
Level of difficulty: Hard
25.Which of the following age groups is thought to control three-quarters of the countrys wealth?
a.020 age segment
b.60+ age segment
c.2030 age segment
d.3040 age segment
e.40+ age segment
Answer: e
Page: 81
Level of difficulty: Hard
26.At one time the United States was called a melting pot society because of the number of different cultures that were integrated into the U.S. culture. Today, the United States is described as a ________ society because many ethnic groups are maintaining their ethnic differences, neighborhoods, and cultures.
a.boiling potb.salad bowlc.banana splitd.doubled upe.non-communicativeAnswer: b
Page: 81
Level of difficulty: Medium
27.According to the 2000 census, the U.S. population of 276.2 million was 72 percent white and ________ percent African American. The remainder consisted of Hispanic Americans and other minorities.
a.20
b.18
c.15
d.13
e.11
Answer: d
Page: 81
Level of difficulty: Hard
28.Diversity goes beyond ethnic and racial markets. More than ________ million Americans have disabilities, and they constitute a market for home delivery companies (and others).
a.50
b.40
c.30
d.20
e.10
Answer: a
Page: 83
Level of difficulty: Hard
29.Which of the following countries is known for having 99 percent of its population literate?
a.England
b.Germany
c.France
d.United States
e.Japan
Answer: e
Page: 83
Level of difficulty: Medium
30.The ________ household consists of a husband, wife, and children (and sometimes grandparents).
a.traditionalb.extendedc.diversityd.moderne.revised
Answer: a
Page: 83
Level of difficulty: Medium
31.Married couple householdsthe dominant cohort since the formulation of the United Stateshas slipped from nearly 80 percent in the 1950s to around ________ percent today.
a.70
b.60
c.50
d.40
e.35
Answer: c
Page: 83
Level of difficulty: Hard
32.The twenty-first century saw ________ markets grow more rapidly again due to a higher birth rate, a lower death rate, and rapid growth from foreign immigration.
a.suburban
b.urban
c.rural
d.coastal
e.secondary
Answer: b
Page: 84
Level of difficulty: Medium
33.The movement by population to the ________ has lessened the demand for warm clothing and home heating equipment and increased demand for air conditioning.
a.Grainbelt
b.Pacific Northwest
c.Sunbelt
d.Mid-Coastal areas
e.Heartland
Answer: c
Page: 84
Level of difficulty: Easy
34.Marketers look at where consumers are gathering. Almost one in ________ people over the age of five (120 million) moved at least one time between 1995 and 2000, according to a Census 2000 brief.
a.two
b.three
c.four
d.five
e.ten
Answer: a
Page: 85
Level of difficulty: Hard
35.In which of the following economies would we expect to find few opportunities for marketers?
a.Industrializing economies.
b.Land-locked economies.
c.Raw-material-exporting economies.
d.Industrial economies.
e.Subsistence economies.
Answer: e
Page: 86
Level of difficulty: Easy
36. According to information presented in the text, which of the following countries is surprisingly a very good market for Lamborghini automobiles (costing more than $150,000) because of the number of wealthy families that can afford expensive cars. a.Greece
b.Switzerland
c.Holland
d.Russia
e.Portugal
Answer: e
Page: 86
Level of difficulty: Hard
37.Over the past three decades in the United States, the rich have grown richer and the middle class has ________.
a.stayed about the same
b.shrunk
c.increased slightly
d.matched the rich in terms of relative growth
e.been ignored because of problems with the poorer classes
Answer: b
Page: 86
Level of difficulty: Medium
38.________ shapes the beliefs, values, and norms that largely define the tastes and preferences.
a.Marketing
b.The mass media
c.Government
d.Production innovation and engineering
e.Society
Answer: e
Page: 87
Level of difficulty: Medium
39.If a consumer lives the lifestyle of a pleasure seeker or goes on a self-realization quest, he or she is expressing what is called ________.
a.views of others
b.views of society
c.views of themselves
d.views of organizations
e.views of the universe
Answer: c
Pages: 8788
Level of difficulty: Easy
40.According to the information found in the social-cultural environment, with respect to views of others, ________ are considered to be things that allow people who are alone to feel they are not (e.g., television, home video games, and chat rooms on the Internet).
a.social surrogates
b.subliminal fantasies
c.relationship avoidance
d.primary products
e.secondary products
Answer: a
Page: 88
Level of difficulty: Medium
41.Today, corporations need to make sure that they are good corporate citizens and that their consumer messages are honest. Such a view would be consistent with which of the following views?
a.Views of others.
b.Views of organizations.
c.Views of themselves.
d.Views of the universe.
e.Views of society.
Answer: b
Page: 88
Level of difficulty: Easy
42.People vary in their attitudes toward their society. ________ usually live more frugally, drive smaller cars, and wear simpler clothing.
a.Makers
b.Escapers
c.Seekers
d.Changers
e.Developers
Answer: d
Page: 88
Level of difficulty: Hard
43.People vary in their attitudes toward society and react accordingly. ________ are a major market for movies, music, surfing, and camping.
a.Makers
b.Preservers
c.Escapers
d.Changers
e.Developers
Answer: c
Page: 88
Level of difficulty: Easy
44.All of the following have been cited by the text as being among Americans core values EXCEPT ________.
a.they believe in work
b.they believe in getting married
c.they believe in giving to charity
d. they believe in being honest
e. they believe in sexual permissiveness
Answer: e
Page: 88
Level of difficulty: Easy
45.Which of the following would be the best illustration of a secondary belief or value?
a.Belief in work.
b.Belief in giving to charity.
c.Belief in getting married.
d.Belief in getting married early.
e.Belief in being honest.
Answer: d
Page: 88
Level of difficulty: Medium
46. Which of the following is by far the most popular American leisure activity in that it is preferred by 59 percent of adults who participate in such activities?
a.Gardening.
b.Walking for exercise.
c.Swimming.
d.Photography.
e.Jogging or running.
Answer: b
Page: 89
Level of difficulty: Medium
47.Each society contains ________, groups with shared values emerging from their special life experiences or circumstances.
a.demographic segments
b.cliques
c.consumer bundles
d.subcultures
e.behavioral niches
Answer: d
Page: 89
Level of difficulty: Medium
48. Which of the following would be the best illustration of a subculture?
a.A softball team.
b.A university alumni association.
c.Teenagers.
d.A Boy Scout troop.
e.Frequent flyers.
Answer: c
Page: 89
Level of difficulty: Medium
49. All of the following EXCEPT ________ have been found to influence young people today and cause a shift of secondary cores values for this group.
a.U2s Bono.
b.Elvis Presley.
c.The NBAs LeBron James.
d.Golfs Tiger Woods.
e.Skateboarder Tony Hawk.
Answer: b
Page: 89
Level of difficulty: Easy
50. Although core values are fairly persistent, cultural swings do take place. ________ caused such a swing in the 1960s.
a.Ford Motor Company
b.George McGovern
c.G.I. Joe action characters
d.The infomercial
e.The Beatles
Answer: e
Page: 89
Level of difficulty: Medium
51. Marketers need to be aware of threats and opportunities associated with four trends in the natural environment. All of the following are among those trends EXCEPT ________.
a.the shortage of raw materials
b.the increased cost of energy
c.near 90 percent corporate support for green causesd.increased pollution levels
e.the changing role of governments
Answer: c
Page: 90
Level of difficulty: Easy
52. With respect to the shortage of raw materials, air and water are classified as ________ resources. However, as we know, problems are beginning to plague both our air and water quality.
a.infinite
b.near finite
c.finite renewable
d.finite nonrenewable
e.absolute
Answer: a
Page: 90
Level of difficulty: Medium
53. One finite nonrenewable resource, ________, has created serious problems for the world economy. Because of anticipated shortages, investment and commodity markets have had wild swings.
a.water
b.air
c.sugar
d.coffee
e.oil
Answer: e
Page: 90
Level of difficulty: Easy
54. From a branding perspective, green marketing programs have not been entirely successful. ________ has been cited as one of the obstacles that must be overcome for green marketing programs to be more successful.
a.Overexposure and lack of credibility
b.High cost
c.Poor promotions
d.Resistance by the youth segment in the marketplace
e.Lack of support by governmental agencies and concerns
Answer: a
Page: 91
Level of difficulty: Hard
55. Which of the following countries is noted for their green movement and support within its government for environmental quality enhancement?
a.Mexico
b.China
c.Germany
d.England
e.Italy
Answer: c
Page: 91Level of difficulty: Medium
56. The marketer should monitor the following trends in technology, EXCEPT ________, if progress is to be made in business.
a.the pace of change
b.the difficulties found in sharing information
c.the opportunities for innovation
d.varying R&D budgets
e.increased regulation
Answer: b
Page: 92
Level of difficulty: Hard
57. According to some industry analysts and inventors, ________ will eventually eclipse the PC as our most important technological device.
a.iPod
b.HDTV
c.holographic television
d.the mobile phone
e.solar-powered car
Answer: d
Page: 92
Level of difficulty: Medium
58. All of the following will most likely be among the advantages for a society that embraces telecommuting as an employment/communication alternative EXCEPT ________.
a.reduction of auto pollution
b.bringing the family closer together
c.increased bonuses and compensation perks
d.creating more home-centered shopping
e.entertainment centered on the home environment
Answer: c
Page: 92
Level of difficulty: Medium
59.________ legislation has as its purposes to protect companies from unfair competition, to protect consumers from unfair business practices, and to protect the interests of society from unbridled business behavior.
a.Business
b.Consumer
c.Bi-partisan
d.Activist
e.Global
Answer: a
Page: 94
Level of difficulty: Easy
60. An important force affecting business is the ________a movement of citizens and government organized to strengthen the rights and powers of buyers in relation to sellers.
a.lobbyist movement
b.consumerist movement
c.environmental movement
d.self-rights movement
e.ethical reform movement
Answer: b
Page: 95
Level of difficulty: Medium
True/False
61. The major responsibility for identifying significant marketplace changes falls to the companys marketers.
Answer: True
Page: 72
Level of difficulty: Easy
62. Today, most firms are rather sophisticated about gathering information.
Answer: False
Page: 72
Level of difficulty: Medium
63. A marketing information system is developed from internal company records, marketing intelligence, and promotional models supplied by the marketing department.
Answer: False
Page: 73
Level of difficulty: Medium
64. The heart of the internal records system is the bar code.
Answer: False
Page: 73
Level of difficulty: Medium
65. According to principles found in database construction and usage, a carpet bombing mail out of a new offer is usually the most successful strategy.
Answer: False
Page: 74
Level of difficulty: Medium
66. The internal records system supplies results data, but the marketing intelligence system supplies happenings data.
Answer: True
Page: 74
Level of difficulty: Easy
67. If a company were pursuing a policy of networking externally it might collect competitors ads or look up news stories about competitors.
Answer: True
Page: 75
Level of difficulty: Medium
68. One of the ways to find relevant online information on competitors strengths and weaknesses might be to frequent distributor or sales agent feedback sites.
Answer: True
Page: 76
Level of difficulty: Medium
69. A style is unpredictable, short-lived, and without social, economic, and political significance.
Answer: False
Page: 77
Level of difficulty: Medium
70. A megatrend has been described as being what follows all fads that stay on the market at least one year.
Answer: False
Page: 77
Level of difficulty: Medium
71. One of the ten significant megatrends that will impact marketing efforts in the future is delayed retirement.
Answer: True
Page: 78
Level of difficulty: Medium
72. Microenvironmental forces have been labeled as being uncontrollable.
Answer: False
Page: 78
Level of difficulty: Medium
73. The main demographic force that marketers monitor is population.
Answer: True
Page: 79
Level of difficulty: Medium
74. If the world were a village of 1,000 people, it would consist of 520 men and 480 women.
Answer: False
Page: 79
Level of difficulty: Medium
75. A growing population always means a growing market.
Answer: False
Page: 80
Level of difficulty: Medium
76. Japan has one of the worlds oldest populations.
Answer: True
Page: 80
Level of difficulty: Medium
77. According to population studies, Gen X (numbering 72 million) is almost the same size as the huge baby boomer market.
Answer: False
Page: 81
Level of difficulty: Medium
78. At present the largest minority in the United States is the Latinos with 13 percent of the total population.
Answer: False
Page: 81
Level of difficulty: Medium
79. In the United States, 10 to 15 percent of the population may be functionally illiterate.
Answer: True
Page: 83
Level of difficulty: Medium
80. Based on research done in England, a conclusion drawn about families is that friends are the new family.
Answer: True
Page: 83
Level of difficulty: Hard
81. According to studies of minority markets, the disabled market is ten times more likely to be in a professional job, almost twice as likely to own a vacation home, eight times more likely to own a notebook computer, and twice as likely to own individual stocks as compared to the general population.
Answer: False
Page: 84
Level of difficulty: Medium
82. Urban markets are once again growing because of higher birth rates, a lower death rate, and rapid growth from foreign immigration.
Answer: True
Page: 84
Level of difficulty: Medium
83. The small officehome office segment of our society has grown to nearly 40 million; thereby, boosting the sales of electronic conveniences and ready to assemble furniture.
Answer: True
Page: 85
Level of difficulty: Medium
84. Almost one in two people over the age of five (120 million) moved at least one time between 1995 and 2000, according to a Census 2000 brief.
Answer: True
Page: 85
Level of difficulty: Medium
85. Available purchasing power in an economy depends on mainly one facetsupply and demand.
Answer: False
Page: 85
Level of difficulty: Easy
86. A good illustration of a raw-material exporting economy is Egypt.
Answer: False
Page: 86
Level of difficulty: Hard
87. Conventional retailers who offer medium-priced goods are the most vulnerable to the growing trend in the United States called a two-tier market.
Answer: True
Page: 86
Level of difficulty: Hard
88. Through outsourcing, companies can feasibly cut between 20 to 70 percent of their labor costs.
Answer: True
Page: 87
Level of difficulty: Easy
89. Pleasure seekers of the 1970s had their beliefs, values, and norms shaped by views of others. Answer: False
Pages: 8788
Level of difficulty: Medium
90. If a single person has a home entertainment system that is rich in television capabilities and home video games, he or she may be using such a system as a social surrogate.
Answer: True
Page: 88
Level of difficulty: Medium
91. In recent years, because of a tough job market, there has been an increasing amount of organizational loyalty among most employees.
Answer: False
Page: 88
Level of difficulty: Medium
92. If a young college student decides to join the military to defend the principles of his or her country, the student would be classified as a changer.
Answer: False
Page: 88
Level of difficulty: Medium
93. Most Americans still believe in getting married as a core belief.
Answer: True
Page: 88
Level of difficulty: Easy
94. Teenagers would be a good example of a culture in the United States.
Answer: False
Page: 89
Level of difficulty: Medium
95. Marketers need to be aware of the threats and opportunities associated with the trend toward increased pollution levels.
Answer: True
Page: 90
Level of difficulty: Medium
96. Research studies have shown that consumers as a whole may not be willing to pay a premium for environmental benefits.
Answer: True
Page: 91
Level of difficulty: Easy
97. Every new technology is a force for creative destruction.
Answer: True
Page: 92
Level of difficulty: Easy
98. Virtual reality is giving consumers what they dream about.
Answer: False
Page: 93
Level of difficulty: Medium
99. One of the major trends in the political-legal environment is the trend toward the growth of special interest groups.
Answer: True
Page: 93
Level of difficulty: Easy
100. Today, customers are still willing to swap personal information for customized products from firms.
Answer: True
Page: 95
Level of difficulty: Easy
Essay
101.Describe a marketing information system (MIS). From what sources is the MIS developed?
Suggested Answer: A marketing information system (MIS) consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. A marketing information system is developed from internal company records, marketing intelligence activities, and marketing research.
Page: 73
Level of difficulty: Medium
102.
Describe the order-to-payment cycle and why it is important to internal records information keeping.
Suggested Answer: The heart of the internal records system is the order-to-payments cycle. Sales representatives, dealers, and customers send orders to the firm. The sales department prepares invoices and transmits copies to various departments. Out-of-stock items are back ordered. Shipped items are accompanied by shipping and billing documents that are sent to various departments. Todays companies must perform these steps quickly and accurately.
Page: 73
Level of difficulty: Medium
103. What are the various steps to improve the quality of its marketing intelligence function that can be taken by a company?
Suggested Answer: The steps are: (1) a company can train and motivate the sales force to spot and report new developments; (2) a company can motivate distributors, retailers, and other intermediaries to pass along important intelligence; (3) a company can network externally; (4) a company can set up a customer advisory panel; (5) a company can take advantage of government data resources; (6) a company can purchase information from outside suppliers, and (7) a company can use online customer feedback systems to collect competitive intelligence.
Pages: 7476
Level of difficulty: Hard
104. List and briefly describe the four main ways marketers can find relevant online information on competitors strengths and weaknesses, and summary comments and overall performance rating of a product, service, or supplier.
Suggested Answer: The four ways are: (1) independent customer goods and service review forums; (2) distributor or sales agent feedback sites; (3) combo-sites offering customer review and expert opinions; and (4) customer complaint sites.
Page: 77
Level of difficulty: Hard
105. What is a megatrend? Briefly describe five megatrends shaping the consumer landscape.
Suggested Answer: A megatrend is a large, social, economic, political, and technological change that is slow to form, and once in place, influences us for some time (e.g., between seven and ten years or longer). The ten trends (students discuss five) discussed in the text are (1) aging boomers; (2) delayed retirement; (3) the changing nature of work; (4) greater educational attainmentespecially among women; (5) labor shortages; (6) increased immigration; (7) rising Hispanic influence; (8) shifting birth trends; (9) widening geographic differences; and (10) the changing age structure.
Pages: 7778
Level of difficulty: Hard
106. What is the main demographic force monitored by marketers? Why?
Suggested Answer: The main demographic force monitored by marketers is population. The reason for its importance is because people make up markets. Marketers are keenly interested in the size and growth rate of population in cities, regions, and nations; age distribution and ethnic mix; educational levels; household patterns; and regional characteristics and movements.
Page: 79
Level of difficulty: Medium
107. Describe the two dominant household patterns in the last 50 years.
Suggested Answer: The dominant patterns are: (1) the traditional household that consists of a husband, wife, and children (and sometimes grandparents). Yet, in the United States today, one out of eight households is diverse or nontraditional, and includes a variety of household types and members; and (2) married couple householdsthe dominant cohort since the formation of the United Stateshave slipped from 80 percent in the 1950s to around 50 percent today. Nearly 30 percent of households are singles or live-alones.
Page: 83
Level of difficulty: Medium
108.People absorb, almost unconsciously, a worldview that defines their relationships. List and describe the views that assist or retard this relationship development process.
Suggested Answer: The views are: (1) views of themselves; (2) views of others; (3) views of organizations; (4) views of society; (5) views of nature; and (6) views of the universe. Students should characterize each based on materials presented in the text.
Pages: 8788
Level of difficulty: Hard
109.Describe the differences between a core belief and a secondary belief. List the primary core beliefs of Americans as revealed by the text. Suggested Answer: The people living in a particular society hold many core beliefs and values that tend to persist. Most Americans still believe in work, in getting married, in giving to charity, and in being honest. Core beliefs and values are passed on from parents to children and are reinforced by major social institutions (e.g., schools, churches, businesses, and governments). Secondary beliefs and values are more open to change. Believing in the institution of marriage is a core belief; believing that people ought to get married early is a secondary belief. Marketers have some chance of changing secondary beliefs. There is little chance to change a core belief or values.
Pages: 8889
Level of difficulty: Medium
110. Many marketers have tried and failed with green sales pitches (appeals to ones environmental good sense) over the past decade. What obstacles (as cited by the text) did this movement encounter? Be sure to briefly explain each obstacle.
Suggested Answer: The obstacles were: (1) overexposure and lack of credibility; (2) consumer behavior; and (3) poor implementation. For an explanation of each see chapter material.
Page: 91
Level of difficulty: Medium
APPLICATION QUESTIONSMultiple Choice
111. DuPont commissioned marketing studies to uncover personal pillow behavior for its Dacron Polyester unit that supplies filling to pillow makers and sells its own Comforel brand. Which of the following was revealed by research to be the primary challenge faced by DuPont in expanding sales in the pillow industry?
a.Price.
b.People dont want to give up their old pillows.
c.The smell associated with polyester.
d.The lack of a favorable reputation in the industry.
e.Competition from China.
Answer: b
Page: 72
Level of difficulty: Medium
112.Assume that you are a marketing information specialist for a large clothing manufacturer. Your task is to get functional managers to use the companys MIS system on a more regular basis. All of the following questions are would be among those that might be submitted to those managers to pique their interest in MIS EXCEPT, ________?
a. What is your appraisal of the budget for your functional area this year
b. What decisions do you regularly make
c. What information do you need to make these decisions
d. What topics would you like to be kept informed of
e. What data analysis programs would you want
Answer: a
Page: 73
Level of difficulty: Easy
113. As the manager of an organization that is attempting to build a MIS, you have been informed that a MIS is built upon three fundamental information sources. The sources are ________, marketing intelligence activities, and marketing research.
a. external records and documents
b. databases found on the Internet
c. consultant reports
d. internal company records
e. secondary data from government sources such as the Better Business Bureau
Answer: d
Page: 73
Level of difficulty: Hard
114.Pizza Hut has millions of customer records gleaned from point-of-sale transactions at its restaurants. Using Teradata Warehouse Miner, Pizza Hut has not only been able to ________, but can also target its marketing to find the best coupon offers for each household and predict the success of campaigns.
a.reduce its outside research emphasis
b.increase profits dramatically
c.reduce television advertising
d.win quality awards
e.purge expensive duplicates from its direct-mail campaigns
Answer: e
Page: 74
Level of difficulty: Medium
115. As a manager you would most likely use an internal records system to supply ________ data, whereas, you would use your marketing intelligence system to supply happenings data.
a.demand
b.logistical
c.psychographic
d.results
e.primary
Answer: d
Page: 74
Level of difficulty: Hard
116.
When McDonalds used mystery shoppers to assess stores internal speed standards, McDonalds was using which of the following steps to improve its marketing intelligence system?
a. A company can train and motivate the sales force to spot and report new
developments.
b. A company can motivate distributors, retailers, and other intermediaries to
pass along important intelligence.
c. A company can network externally.
d. A company can set up an advisory panel.
e. A company can take advantage of government data sources.
Answer: b
Pages: 7476
Level of difficulty: Medium
117. Examples of ________ that were considered to be successful for toy retailers were Beanie Babies, Furbies, and Tickle Me Elmo dolls.
a.trends
b.fashions
c.fads
d.megatrends
e.styles
Answer: c
Page: 77
Level of difficulty: Medium
118.
More than half of all U.S. workers are employed in ________, in professional or related occupations, or in a sales or other office-based position.
a.accounting
b.finance
c.computer information systems
d.database maintenance
e.management
Answer: e
Page: 78
Level of difficulty: Hard
119.As baby boomers grow older, their impact on consumer spending can be described as being ________.
a.substantial (without overstating)
b.marginal at best
c.eclipsed by the Generation X members
d.only moderate
e.stymied by higher taxes
Answer: a
Page: 78
Level of difficulty: Medium
120.According to information provided in the text, ________ is an example of a country with a very young and rapidly expanding population where products such as milk, diapers, school supplies, and toys would be important.
a.Japan
b.France
c.Spain
d.Mexico
e.the United Kingdom
Answer: d
Page: 80
Level of difficulty: Hard
121.________ are typically cynical about hard-sell marketing pitches that promise more than they can deliver.
a. Baby boomers
b. War babies
c. Generation Z
d. Generation X
e. Net-gens
Answer: d
Page: 81
Level of difficulty: Medium
122.A frequently noted megatrend in the United States is the increase percentage of ________ in the total population; they made up half of all new workers in the past decade.
a. Asians (excluding Chinese)
b. Indians
c. Chinese
d. Hispanics
e. Africans
Answer: D
Page: 81
Level of difficulty: Medium
123. Because of heightened competition for top students and concerns about institutional reputations and rankings, many universities are now increasing marketing efforts with the purpose of ________.
a.
creating virtual educational processes
b.creating definable brands
c.
stimulating fun on campus
d.managing organizational resources
e. delaying belt-tightening in the future
Answer: b
Page: 83
Level of difficulty: Medium
124. What percentage of people (cohorts) in the United States are considered to be married couple households?
a. 80 percent
b. 70 percent
c. 60 percent
d. 50 percent
e. 40 percent
Answer: d
Page: 83
Level of difficulty: Hard
125.
Jason has just moved in with several friends in what might commonly be called a commune. As a 20-something, Jasons choice of living style is exemplified by the term ________.
a. dropout
b. pseudo-technocrat
c. neo-tribe
d. socialist
e. fascist
Answer: c
Page: 83
Level of difficulty: Medium
126.
The outsourcing wave (computer analysis and software design) that has been experienced by India with its young technologically-proficient younger generation has had an impact on traditions as well as the economy. Young Indians (liberation children) are questioning ________.
a. the tax system of the country
b. the political parties of India for relevance
c. the meaning of life
d. their charitable responsibilities
e. conservative traditions such as arranged marriages and no public kissing
Answer: e
Page: 86
Level of difficulty: Medium
127.
William rose rapidly in his organization and was the youngest CEO in the companys history. His self-declared purpose as a leader was to make his company an integral part of the American way of life and to eventually enter into public service of his country. William would be characterized as being a ________.
a. preserver
b. maker
c. taker
d. seeker
e. reaper
Answer: b
Page: 88
Level of difficulty: Medium
128.
How do Americans spend their leisure time59 percent of Americans (the highest percentage) say that walking for exercise is their primary way of spending leisure time. What is the second most mentioned leisure activity with 45 percent?
a.Swimming
b.Bicycling
c.Jogging or running
d.Gardening
e. Power boating
Answer: d
Page: 89
Level of difficulty: Hard
129.
To get around obstacles to green marketing and make sure environmental initiatives are implemented, some companies recommend relying on the efforts of a ________.
a.senior ethics officer
b.market maven
c.Green Champion
d.HR vice-president
e.watch-dog committee
Answer: c
Page: 91
Level of difficulty: Medium
130.
________ lobby government officials and pressure business executives to pay more attention to consumers rights, womens rights, senior citizens rights, minority rights, and gay rights.
a.Political action committees (PACs)
b.Universities and colleges
c.The Better Business Bureau
d.The U.S. Chamber of Commerce
e.Manufacturing trade associations (MTAs)
Answer: a
Page: 95
Level of difficulty: Easy
Short Answer
131.
Although every manager in an organization needs to observe the outsideenvironment, marketers have two advantages. What are those two advantages?
Suggested Answer: The two advantages are: (1) they have disciplined methods for collecting information and (2) they spend more time interacting with customers and observing competition.
Page: 72
Level of difficulty: Medium
132.If you were a companys marketing information manager, you would need to realize that your marketing information system should be a cross between three areas of concern (thoughts) for managers with respect to information. What are those three concerns (thoughts)?
Suggested Answer: The three concerns (thoughts) are: (1) what managers think they need, (2) what managers really need, and (3) what is economically feasible.
Page: 73
Level of difficulty: Medium
133.What typically would be the function of a sales information system? Think of an example to illustrate such a function.
Suggested Answer: A sales information system typically supplies accurate and timely reports on current sales. See the example of Wal-Mart and its sales information system to add additional data to this question.
Page: 73
Level of difficulty: Easy
134. Explain the statement that internal records systems supply results data and marketing intelligence systems supply happenings data.
Suggested Answer: The internal records system records (and reports) orders, sales, prices, costs, inventory levels, receivables, payables, and so on. These are the results of doing business. Marketing intelligence is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment (happenings data).
Pages: 7374
Level of difficulty: Easy
135.
One of the ways that a marketer can improve its marketing intelligence function is to network externally. What does networking externally mean? Provide an illustration to support your answer.
Suggested Answer: A company that seeks to network externally does so by (if applicable) purchasing competitor products, attending open houses and trade shows, reading competitors published reports, attending stockholder meetings, talking to employees, dealers, distributors, suppliers, and freight agents, collecting competitors ads, and looking up news stories about competitors.
Page: 75
Level of difficulty: Medium
136.
Marketers today use relevant online information to assess competitors product strengths and weaknesses. Additionally, summary comments and overall performance rating of products, services, and suppliers can be obtained. List the four main ways marketers can get such information online.
Suggested Answer: The four ways are (1) independent customer goods and service review forms, (2) distributor or sales agent feedback sites, (3) combo-sites offering customer reviews and expert opinions, and (4) customer complaint sites.
Page: 77
Level of difficulty: Hard
137.
What is a trend and why is it important in marketing?
Suggested Answer: A trend is a direction or sequence of events that has some momentum and durability. Trends are more predictable and durable than fads. A trend reveals the shape of the future and provides many opportunities.
Page: 77
Level of difficulty: Medium
138.Assume that you are a marketing manager for a youth clothing manufacturer that has just read about the megatrend of the rising Hispanic influence in the United States. Explain this megatrend and indicate why it might be important to your company and industry.
Suggested Answer: Already the largest minority group in the United States, with 35 million people, the Hispanic population is projected to increase by 35 percent in this decade. Though Hispanic households represented only 9 percent of U.S. households in 2000, they accounted for 20 percent of the 4 million children born in this country that year. Students should indicate how a youth-oriented clothier might use such information.
Page: 78
Level of difficulty: Hard
139.Characterize Generation Y or echo boomers. What implications does this generation have for marketing over the next few years?
Suggested Answer: Born between 1977 and 1994, now numbering 72 million, this group is almost equal in size to baby boomers. One distinguishing characteristic of this age group is their utter fluency and comfort with computer and Internet technology. Students may speculate on addition impacts.
Page: 81
Level of difficulty: Medium
140.
The United States was originally called a melting pot, but there are increasing signs that the melting didnt occur. Explain. What would be a new way of describing our society and how it relates to members?
Suggested Answer: Now people call the United States a salad bowl society, with ethnic groups maintaining their ethnic differences, neighborhoods, and cultures. This appears to be what the various ethnic groups have been doing for sometime.
Page: 81
Level of difficulty: Medium
141.As a marketing manager you have observed that the traditional household in the United States is giving way to the nontraditional household. Explain what this means and characterize the nontraditional household.
Suggested Answer: Today, one of eight households is characterized as being nontraditional. Examples of the nontraditional household would be single live-alones, adult live-togethers of one or both sexes, single-parent families, childless married couples, and empty-nesters.
Page: 83
Level of difficulty: Medium
142. What two factors have helped those businesses that cater to the growing SOHO (small office/home office) segment that is nearly 40 million strong?
Suggested Answer: The two factors are: (1) suburban growth and (2) a disdain for commuting.
Page: 85
Level of difficulty: Easy
143.
What impact are liberalizing children having on India?
Suggested Answer: Liberalizing children have a hunger for achievement. Liberalization children are questioning conservative traditions such as arranged marriages and no public kissing. They are becoming Westernized.
Page: 86
Level of difficulty: Medium
144.
As indicated in the text, GAP pursues a segmented market strategy with three tiers of retail clothing stores. Explain the GAP tier system and indicate examples of the tiers.
Suggested Answer: GAP has the upscale Banana Republic, the mid-market GAP, and the budget-priced Old Navy. This strategy has helped GAP to grow from $7 billion in 1996 to $14 billion by 2003.
Page: 86
Level of difficulty: Medium
145.
Within our social-cultural environment, consumers often see themselves from different views. Assume that you were espousing the view of themselves. Characterize this view.
Suggested Answer: People vary in their relative emphasis placed on self-gratification. In the 60s and 70s there were many pleasure seekers. Others sought self-realization. Today, conservatism is on the rise.
Pages: 8788
Level of difficulty: Hard
146.
Describe the differences between a core belief and secondary belief. Provide an example to illustrate your description.
Suggested Answer: The people living in a particular society hold many core beliefs and values. These tend to persist over time. Most Americans believe in work, getting married, in giving to charity, and in being honest. Secondary beliefs are more open to change such as when is the right time to get married.
Page: 88
Level of difficulty: Medium
147.
Assume that you were asked to write a brief paragraph indicating why a firm might wish to pursue a policy of green marketing. How would your paragraph read?
Suggested Answer: The green marketing movement is associated with environmentally friendly products and marketing programs. These programs were matched to consumers growing interest in environmental issues.
Page: 91
Level of difficulty: Medium
148.
What four trends in technology should marketers monitor?
Suggested Answer: The four trends are: (1) the pace of change, (2) the opportunities for innovation, (3) varying R&D budgets, and (4) increased legislation.
Page: 92
Level of difficulty: Hard
149.With respect to opportunities for innovation, characterize the power of virtual reality for the marketer.
Suggested Answer: Virtual reality is the combination of technologies that allows users to experience three-dimensionally, computer-generated environments through sound, sight, and touch. Virtual reality has impacted everything from our homes to our automobile designs.
Page: 93
Level of difficulty: Easy
150.
Consumers are increasingly willing to swap personal information for customized products from firms. However, there are still consumer concerns. You know that privacy issues are still a public policy hot button. As a consumer advocate, list the consumer concerns that seem to be the most compelling and most difficult to deal with by the marketer.
Suggested Answer: The consumers concerns are: (1) that they will be robbed or cheated, (2) that private information will be used against them, (3) that someone will steal their identity, (4) that they will be bombarded with solicitations, and (5) that children will be targeted.
Page: 95
Level of difficulty: Medium
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