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3) You are directed to
study the factors that are larger societal forces that affect your company–
demographic, economic, natural, technological, political, and cultural. What
are you studying?
A)the macroenvironment
B)the microenvironment
C)the marketing
environment
D)the marketing mix
E)the global environment
4) Which of the
following is NOT a type of factor in a company’s macroenvironment?
A)demographic
B)economic
C)technological
D)competitor
E)political
5) All of the groups within a company are called
the ________.
A)culture
B)diversity
C)internal environment
D)climate
E)range
6) Which type oforganization helps companies to
stock and move goods from their points of origin to their destination?
A)financial intermediary
B)physicaldistribution
firm
C)marketing service firm
D)reseller
E)supplier
7) Banks, credit companies, insurance companies,
and other businesses that help finance transactions or insure against the risks
associated with the buying and selling of goods and services are referred to as
________.
A)financial intermediaries
B)physicaldistribution
firms
C)marketing service
agencies
D)resellers
E)wholesalers

8) A company’s marketing
environment includes various ________ that are made up of groups that have an
actual or potential interest in, or impact on, an organization’s ability to
achieve its objectives.
A)teams
B)audiences
C)markets
D)publics
E)intermediaries
9) Which of the following is NOT an example of a
public that is part of a company’s marketing environment?
A)financial
B)media
C)government
D)citizen-action
E)marketing department
10) A radio station that carries news, features,
and editorialopinions about your area is best classified as which type of
public?
A)financial
B)media
C)citizen-action
D)local
E)regional
Copyright © 2011 Pearson Education, Inc.
11) Consumer
organizations and environmental groups are examples of________ publics.
A)general
B)local
C)government
D)citizen-action
E)media
12) Workers, managers, and members ofthe board
ofdirectors are all part ofa company’s
________.
A)generalpublic
B)internal public
C)localpublic
D)intermediary public
E)market public
13) Percy Originalcaters to a market of
individuals and households that buy goods and services for personal
consumption. What type of market does Percy Original cater to?
A)business
B)reseller
C)government
D)consumer
E)marketing intermediary
14) Which type of market buys goods and services
to produce public services or to transfer them to others who need them?
A)government
B)reseller
C)wholesale
D)consumer
E)retail

15) Members of which
type of market buy goods and services for further processing or for use in the
production process?
A)business
B)reseller
C)wholesale
D)consumer
E)retail
16) Rachel Patino works for a wholesale company
called Distributors Unlimited. She is responsible for buying and selling goods
at a profit to small retailers. What is her market?
A)business
B)reseller
C)wholesale
D)consumer
E)retail
17) Your marketing department is currently
researching the size, density, location, age, and occupations of your target
market. Which environment is being researched?
A)demographic
B)psychographic
C)economic
D)geographic
E)cultural
18) The three largest age groups in America are
the baby boomers, Generation Xers, and
________.
A)seniors
B)Millennials
C)teens
D)tweens
E)toddlers

19) The most important
demographic trend in the United States is the ________.
A)changing age structure of the population
B)mobility of the
population
C)slowing birth rate
D)increasing growth in
professional jobs
E)changing structure of the family
20) The youngest of the baby boomers are now in
their ________.
A)late 20s
B)mid-20s
C)mid-40s
D)early 50s
E)early 60s
21) Which of the following is the most commercially
influential American demographic age group today?
A)Generation X
B)baby boomers
C)Millennials
D)seniors
E)tweens
22) Which of the following descriptions most
accurately characterizes the baby boomers?
A)They are aging and
slowing down.
B)They are a shrinking
market for new housing and home remodeling.
C)They are past their
peak earning and spending years.
D)They hold 75% ofthe
country’s financial assets.
E)They were largely
unaffected by the recent recession.
Answer: D
23) Which demographic group
was once labeled “the MTV generation” but has become the most
educated generation to date?
A)Generation X
B)Millennials
C)Generation Y
D)baby boomers
E)teenagers
24) Which of the following descriptions most
accurately characterizes Gen Xers?
A)There are more Gen Xers than Millennials.
B)They were the first
generation of latchkey kids.
C)They tend to put
career before family.
D)They are more
interested in acquiring goods than having experiences.
E)They rarely research a
product before purchasing it.
25) Which demographic group is also referred to
as the echo boomers?
A)Generation X
B)Millennials
C)Generation Z
D)Baby boomers
E)Baby busters
26) Which demographic group includes large tween
and teen markets?
A)Generation X
B)Millennials
C)baby busters
D)baby boomers
E)the elderly
.
27) Which of the
following descriptions most accurately characterizes Millennials?
A)They are children ofbaby boomers.
B)They are not as
technologically savvy as Gen Xers are.
C)They have reached
their peak earning and spending years.
D)They were once labeled
“the MTV generation.”
E)They have graduated
from college and are taking over positions ofpower in the business world.
28) Which demographic group is characterized by
a total fluency and comfort with computer, digital, and Internet technology?
A)Generation X
B)Millennials
C)the elderly
D)Generation Z
E)baby boomers
29) Which of the following demographic groups
has NOT seen a percentage increase in the past 50 years?
A)women staying at home with their children
B)men staying at home with their children
C)nontraditional
households
D)nonfamily households
E)women working outside
of the home

30) The number
of________ households is now growing faster than the number of________
households.
A)traditional;
nontraditional
B)large; traditional
C)nontraditional;
smaller
D)nontraditional;
traditional
E)male-dominant; female-dominant
31) In 1950, women made up less than 40 percent
of the workforce; now they make up
________.
A)35 percent
B)40 percent
C)43 percent
D)46 percent
E)59 percent
32) Americans are very mobile. Over the past two
decades, the U.S. population has shifted most heavily toward the ________
states.
A)Midwestern
B)Northwestern
C)Sunbelt
D)Southeastern
E)Northeastern
.
33) Which of the
following geographical areas has NOT experienced a recent population increase?
A)micropolitan areas
B)suburbs
C)the West
D)the Northeast
E)the South
34) In the 1950’s the American population began
shifting from large cities to ________.
A)farming communities
B)ruralareas
C)foreign countries
D)suburbs
E)coastal towns
35) As more and more Americans are moving to
“micropolitan areas,” marketers can most reasonably assume that
________.
A)geographic segmentation may be less critical
B)ruralpopulations will offer an expanding
market
C)micropolitan areas may
offer the same advantages as metropolitan areas
D)congested areas may
become more ensnarled
E)crime rates in
metropolitan areas will increase
36) An increasing number ofAmerican workers work
out of their homes with technological conveniences such as
PCs, high-speed Internet access, and fax machines. These workers are
referred to as the ________ market.
A)LOHAS
B)SOHO
C)Gen X
D)Millennial
E)micropolitan
37) Which of the
following most accurately reflects the popularity oftelecommuting?
A)Almost all American
businesses are expected to offer telecommuting options within the next decade.
B)The majority of American businesses currently
offer telecommuting programs for their
employees.
C)About 40% of American
businesses currently offer telecommuting programs for their employees.
D)About 25% of American
businesses currently offer telecommuting programs for their employees.
E)The percentage of
American businesses offering telecommuting programs is expected to decline
within the next decade.
38) Over the past 50 years, which ofthe
following groups of workers has become smaller?
A)managers
B)manufacturers
C)professionals
D)telecommuters
E)married women
39) Because of increasing ________, Americans will
demand higher quality products, books, magazines, travel, personalcomputers,
and Internet services.
A)numbers of nontraditional families
B)family size
C)levels of education
D)socialclass awareness
E)ethnic diversity

40) Which of the
following is an accurate statement about the diversity of the American
population?
A)African Americans represent the
largest non-white segment of the population.
B)More than 12 percent of people living in the
United States were born in another country.
C)The Asian American
percentage ofthe population is expected to remain steady in the next 50 years.
D)In terms ofethnic diversity, the United States
is about average in comparison to other
countries with
populations ofa comparable size.
E) American ethnic populations are expected to slowly increase in
the next few decades.
41) Of the following, which is
the fastest-growing group in the United States?
A)African Americans
B)Caucasians
C)Hispanics
D)Native Americans
E)Arab Americans

42) Because ofan expected increase in ethnic populations, marketers are likely
to place a greater emphasis on ________.
A)geographic segmentation
B)targeted advertising
messages
C)mass marketing
D)mainstream advertising
E)cause-related marketing
.
43) Members of which of
the following groups are more likely than the generalpopulation to have
professional jobs, own a vacation home, own a notebook computer, and own
individual stocks?
A)Gen Xers
B)gays and lesbians
C)Millennials
D)echo boomers
E)environmentalists
44) Of the following diversity segments in the
American population, which is currently the largest?
A)adults with disabilities
B)Hispanics
C)African Americans
D)telecommuters
E)Asian Americans
45) The ________ environment consists of factors
that affect consumer purchasing power and spending patterns.
A)cultural
B)political
C)technological
D)economic
E)natural
46) A country with a(n)
________ economy consumes most of is own agriculturaland industrial outputs and
offers few market opportunities.
A)industrial
B)service
C)technological
D)subsistence
E)developed
47) A country with a(n) ________ economy has
rich markets for many different kinds of goods.
A)industrial
B)service
C)rural
D)subsistence
E)multicultural
48) Value marketing is the strategy of offering
consumers ________.
A)high quality at a high price
B)luxury quality at a
high price
C)lesser quality at a
low price
D)reasonable quality at
a fair price
E)little quality at a low price
49) Which of the following statements about
income distribution in the United States is NOT true?
A)In recent decades, the rich have gotten
richer.
B)In recent decades, the
middle class has grown.
C)In recent decades, the
poor have remained poor.
D)The top 10 percent of
American earners account for almost half ofall American income.
E)The top one percent of
American earners receive a higher percentage of the nation’s total income than
do the bottom 50 percent of American earners.
14
50) In a tiered market,
companies target which ofthe following?
A)affluent consumers only
B)consumers of modest
means only
C)the middle class only
D)consumers at all
levels of income distribution
E)professionals only
51) Which of the following combinations of
expenses use up most household income?
A)food, housing, retirement planning
B)housing, insurance,
taxes
C)food, housing,
transportation
D)housing, taxes,
transportation
E)food, travel, savings

52) Ernst Engel’s laws generally have been
supported by recent studies. He discovered that as family income rises, the
percentage spent on ________ declines and the percentage spent on
________ remains about constant.
A)food; clothing
B)clothing;
recreation/entertainment
C)savings;
transportation
D)food; housing
E)recreation/entertainment;
savings
53) The natural resources that are needed as
inputs by marketers or that are affected by marketing activities are referred
to as the ________.
A)raw material market
B)natural environment
C)endangered environment
D)green movement
E)factors ofproduction
54) Which of the
following American government agencies is charged with setting and enforcing
pollution standards?
A)the Environmental Protection Agency (EPA)
B)the Federal Trade Commission (FTC)
C)the Food and Drug
Administration (FDA)
D)the Consumer Product
Safety Commission
E)the Federal Energy
Regulatory Commission
55) What movement has encouraged marketers to
pursue environmentally sustainable strategies?
A)the EPA
B)the black market
C)the green movement
D)the SOHO movement
E)green intervention
56) Which country leads the world in research
and development spending?
A)England
B)Germany
C)Sweden
D)Japan
E)the United States

57) Which of the
following is a result ofregulations set up by the Food and Drug Administration
and the Consumer Product Safety Commission?
A)The time lag between new product ideas and
their introduction to the market has decreased.
B)Spending on research and development has
decreased.
C)Research costs for
companies have grown.
D)More companies have
failed to meet safety standards.
E)Companies are more
focused on making practical, affordable versions ofproducts.
58) Marketers should be aware of laws,
government agencies, and pressure groups that influence or limit various
organizations and individuals in a given society. This is the ________
environment.
A)socio-legal
B)cultural
C)political
D)legal-technological
E)economic

59) Even the most liberal advocates
of free-market economies agree that the system works best with
________ regulation.
A)private
B)maximum
C)intermittent
D)at least some
E)no

60) Legislation affecting
business around the world will continue to ________.
A)become simplified
B)increase
C)stabilize
D)decrease
E)relax consumer protections
61) The legislation created to limit the number
of commercials aired during children’s programming is called the ________.
A)Children’s Online Privacy Protection Act
B)Child Protection Act
C)CommercialProduct Act
D)Children’s Television
Act
E)Consumer Product
Safety Act
62) Business legislation has been created for
three basic reasons: to protect companies fromeach other, to protect consumers,
and to ________.
A)protect the interests of society
B)regulate prices
C)increase world trade
D)regulate monopolies
E)promote environmental
sustainability

63) The recent rash
ofbusiness scandals and increased concerns about the environment have created
fresh interest in the issues of________ and ________.
A)ethics; promotion responsibility
B)ethics; socialresponsibility
C)finances; employee
discrimination
D)management ethics;
culturalbias
E)promotion; pricing
64) A company or association’s ________ is
designed to help guide responses to complex social responsibility issues.
A)code of ethics
B)cause-related marketing
C)discretion in
enforcing regulations
D)privacy policy
E)core value system

Objective: 3-4
65) The primary concern for consumers with the
boom in Internet marketing is ________.
A)pornography
B)false advertising
C)privacy
D)sustainability
E)social responsibility

66) Cause-related marketing
is ________.
A)a response to customer needs
B)a primary form
ofenvironmental awareness
C)a primary form
ofcorporate giving
D)a response to
corporate politicalproblems
E)an attempt to influence customers’ core
beliefs
67) A society’s basic values, perceptions,
preferences, and behaviors are all part of its ________
environment.
A)social
B)cultural
C)political
D)cultural-economic
E)natural
68) A society’s core beliefs and values have a
high degree of________.
A)persistence
B)simplicity
C)similarity
D)ethnocentrism
E)conformity
69) A society’s ________ are expressed in how
people view themselves, organizations, society, nature, and the universe.
A)marketing responses
B)cultural values
C)demographics
D)public policies
E)economies
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