MARK 3000 Chapter 5 Test PDF

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Old test for MARK 3000 Chapter 5 - McManus...

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Chapter 05 Analyzing the Marketing Environment Answer Key

True / False Questions

1.

By paying close attention to customer needs and continuously monitoring the environment in which it operates, a good marketer can identify potential opportunities. TRUE Changes in the environment can be a source of opportunities for the firm.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-01 Outline how customers; the company; competitors; and corporate partners affect marketing strategy. Topic: A Marketing Environment Analysis Framework

2.

When analyzing the immediate environment and the macroenvironment, marketers must be careful to keep the firm at the center of all analyses. FALSE The consumer, not the firm, should be kept at the center of all activity.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-01 Outline how customers; the company; competitors; and corporate partners affect marketing strategy. Topic: A Marketing Environment Analysis Framework

5-1 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

3.

Successful firms focus their efforts on satisfying customer needs that match their core competencies. TRUE The firm's competencies are its strengths; the firm is likely to have the most success if it focuses on these, finding customers whose needs it can meet using these strengths.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-01 Outline how customers; the company; competitors; and corporate partners affect marketing strategy. Topic: The Immediate Environment

4.

In the immediate environment, the competition has no effect on consumers. FALSE Competitors are one factor in the immediate environment that affects consumers.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-01 Outline how customers; the company; competitors; and corporate partners affect marketing strategy. Topic: The Immediate Environment

5.

The three elements of the consumer's immediate environment are the company, competition, and corporate partners. TRUE These are the three components of the immediate environment.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-01 Outline how customers; the company; competitors; and corporate partners affect marketing strategy. Topic: The Immediate Environment

5-2 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

6.

Demographics are transmitted by words, literature, and institutions from generation to generation. FALSE The question describes culture, not demographics.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions. Topic: Macroenvironmental Factors

7.

Demographic profiles of customers provide an easily understood snapshot of the typical consumer in target markets. TRUE Although demographics do not completely describe consumers, they offer a summary snapshot of consumer characteristics that can be useful.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions. Topic: Macroenvironmental Factors

8.

As the euro becomes more expensive relative to the dollar, Americans are likely to purchase more European wines. FALSE When the euro becomes more expensive relative to the dollar, it means that it costs more dollars to buy European goods, which is likely to lead to a drop in the quantity of European wine purchased by Americans.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-04 Identify various social trends that impact marketing. Topic: Macroenvironmental Factors

5-3 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

9.

Macroenvironmental factors include the company, competition, and corporate partners. FALSE Macroenvironmental factors are external factors such as culture, demographics, social issues, technological advances, economic situation, and political/regulatory environments. The factors listed in the question relate to the immediate environment.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions. Topic: Macroenvironmental Factors

10.

Members of Generation Y share a strong emphasis on balancing work and life. TRUE Gen Y puts a strong emphasis on balancing work and life. They want a good job, but they also want to live in a location that supports their lifestyle.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Describe the differences among the various generational cohorts. Topic: Macroenvironmental Factors

11.

Tweens rarely use any type of technology. FALSE This group, a subgroup of Generation Y, has never lived without the Internet or access to cell phones, which makes them technologically savvy.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Describe the differences among the various generational cohorts. Topic: Macroenvironmental Factors

5-4 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

12.

The members of Generation X are also referred to as Digital Natives. FALSE Digital Natives are members of Generation Z, not Generation X.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-03 Describe the differences among the various generational cohorts. Topic: Macroenvironmental Factors

13.

One of the social trends discussed in the text that is shaping consumer values in the U.S. and around the world is a concern about the vast disparity in income. FALSE The social trends mentioned in the text are a greater emphasis on thrift, health and wellness concerns, greener consumers, privacy concerns, and time-poor societies.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-04 Identify various social trends that impact marketing. Topic: Macroenvironmental Factors

14.

When Marcia decided she couldn't afford to take a vacation this year, she went to the mall and bought herself a bottle of her favorite expensive perfume instead. This behavior is referred to as the lipstick effect. TRUE Frequently called the lipstick effect, some shoppers enjoy the thrill of treating themselves to small luxuries, such as a bottle of perfume, but forgo larger luxury items like a vacation.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-04 Identify various social trends that impact marketing. Topic: Macroenvironmental Factors

5-5 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

15.

Burger King no longer uses SpongeBob SquarePants to promote burgers and fries because the character is no longer popular with young children. FALSE Burger King no longer uses SpongeBob because new advertising guidelines do not allow linking unhealthy foods with cartoon characters.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-04 Identify various social trends that impact marketing. Topic: Macroenvironmental Factors

16.

Socially responsible marketing is defined as a strategic effort by firms to supply customers with environmentally friendly merchandise. FALSE This is the definition of green marketing.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Identify various social trends that impact marketing. Topic: Macroenvironmental Factors

17.

The term "time-poor society" refers to the lack of leisure time people have today. TRUE Since 1973, reported leisure time has dropped from 26 to 19 hours a week.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Identify various social trends that impact marketing. Topic: Macroenvironmental Factors

5-6 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

18.

By 2015, people will access the web more often through smartphones than through laptops and desktops combined. TRUE This is true.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Identify various social trends that impact marketing. Topic: Macroenvironmental Factors

19.

Inflation refers to the cost of borrowing money. FALSE Inflation refers to the persistent increase in the prices of goods and services.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-04 Identify various social trends that impact marketing. Topic: Macroenvironmental Factors

20.

The 1890 Sherman Antitrust Act prohibited monopolies and other activities that would restrain trade or competition. TRUE This is correct; it made fair trade within a free market a national goal.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-04 Identify various social trends that impact marketing. Topic: Macroenvironmental Factors

5-7 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

21.

The marketing firm must consider the entire business process from an economic point of view. FALSE The marketing firm must consider the entire business process, all from a consumer's point of view.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-01 Outline how customers; the company; competitors; and corporate partners affect marketing strategy. Topic: A Marketing Environment Analysis Framework

22.

Parties that work with the focal firm are its corporate partners. TRUE This is correct. Firms collaborate with other firms to produce and market their products.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-01 Outline how customers; the company; competitors; and corporate partners affect marketing strategy. Topic: The Immediate Environment

23.

Jeanne, who lives in Boston, refers to Pepsi as tonic, while Paul, who lives in Chicago, calls it pop. This is an example of a regional culture difference. TRUE Regional culture affects many aspects of people's lives, including their vocabulary.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions. Topic: Macroenvironmental Factors

5-8 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

24.

Lisle Hair Company keeps track of the gender and age of its customers so it can target e-mails to them and be sure to have the right hair products in stock when they visit. This is an example of the use of demographics in marketing. TRUE Typical demographics include age, gender, income and race.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions. Topic: Macroenvironmental Factors

25.

Applying age as a basis to identify customers is unethical because it involves stereotyping. FALSE Applying age as a basis to identify consumers is quite useful to marketers, as long as it is used in conjunction with other consumer characteristics.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-03 Describe the differences among the various generational cohorts. Topic: Macroenvironmental Factors

Multiple Choice Questions

5-9 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

26.

As a retail clothing store manager, Randy frequently asks his staff what customers are saying and what they are asking for. He also attends the quarterly clothing show at the regional merchandise mart. Randy's efforts will likely help him to

A. avoid cognitive dissonance. B. implement just-in-time marketing promotions. C. identify potential opportunities. D. avoid the need to understand regional culture. E. achieve cost savings. Close attention to the marketing environment and customer needs is one of the best sources of opportunities.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 05-01 Outline how customers; the company; competitors; and corporate partners affect marketing strategy. Topic: A Marketing Environment Analysis Framework

27.

The centerpiece of the marketing environment analysis framework is

A. green marketing. B. corporate partners. C. cultur e. D. competitive intelligence. E. consumer s. The consumer is the center of all marketing activities.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-01 Outline how customers; the company; competitors; and corporate partners affect marketing strategy. Topic: A Marketing Environment Analysis Framework 5-10 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

28.

A firm's macroenvironment includes all of the following EXCEPT

A. competitio n. B. cultur e. C. demographi cs. D. economic s. E. political/legal issues. Competition is part of the immediate environment, not the macroenvironment.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions. Topic: Macroenvironmental Factors

29.

The center of all marketing efforts is

A. profit s. B. the consumer. C. corporate social responsibility. D. top management. E. the firm. The consumer should be at the center of all marketing activities.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 05-01 Outline how customers; the company; competitors; and corporate partners affect marketing strategy. Topic: A Marketing Environment Analysis Framework

5-11 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

30.

As director of a small art gallery, one of Frederica's major concerns is the preferences of the people who buy her artists' work. Frederica recognizes that the center of her marketing efforts is

A. profit s. B. her target customers. C. artistic social responsibility. D. competing art galleries. E. the arts movement. Frederica's customers should be at the center of all her marketing activities.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-01 Outline how customers; the company; competitors; and corporate partners affect marketing strategy. Topic: A Marketing Environment Analysis Framework

31.

One of the goals of value-based marketing is

A. to provide the greatest value for the least profit. B. to sell products for the highest possible price. C. to offer greater value than competitors offer. D. to determine the value of the brand. E. to sell to all consumers, regardless of their needs. Value-based marketing has to do with offering the greatest possible value to consumers, and greater than competitors offer.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-01 Outline how customers; the company; competitors; and corporate partners affect marketing strategy. Topic: A Marketing Environment Analysis Framework 5-12 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

32.

Ryan knows that one of the goals of value-based marketing is to provide greater value to consumers than competitors offer. To accomplish this goal, Ryan's firm must look at everything it does

A. to value each person in the organization. B. for each generational cohort. C. to avoid cultural clashes. D. from a consumer's point of view. E. to sensitize organization members to ethical values. It is the consumer's perception of value that matters, so the firm's plans must be considered from the consumer's point of view.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 05-01 Outline how customers; the company; competitors; and corporate partners affect marketing strategy. Topic: A Marketing Environment Analysis Framework

33.

Yvonne knows her firm must look at everything it does from a consumer's point of view. One major difficulty is that consumers' __________ change(s) over time.

A. ethnic background B. needs, wants, and ability to purchase C. cultur e D. just-in-time processes E. demographi cs The firm must continually scan the environment, because consumers' wants and needs are not static.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Understand 5-13 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Difficulty: 2 Medium Learning Objective: 05-01 Outline how customers; the company; competitors; and corporate partners affect marketing strategy. Topic: A Marketing Environment Analysis Framework

34.

Select the statement that best describes the key traits of Generation Y.

A. This generation puts a strong emphasis on work/life balance, and some are technologically savvy. B. This generation mostly uses the Internet for the purposes of checking e-mail, the news, and the weather. ...