Analyzing the Marketing Environment Part 3

62) Over the past two decades, the U.S. population has shifted toward the ________ states. A) Northern B) Northeast C) Sunbelt D) Midwest E) Corn belt Answer: C 63) Which of the following has lost population in the past two decades? A) California B) Florida C) the Western states D) the Northeast states E) the Southern states Answer: D 64) In the 1950s, Americans made a massive exit ________. A) from the South to the Northeast B) from the West to the Midwest C) to foreign countries D) from the cities to the suburbs E) from the coastal towns to the cities Answer: D 65) An increasing number of American workers currently work from their homes or remote offices and conduct their business by phone or the Internet. This trend has created a ________. A) booming real estate market in the big cities B) booming SOHO market C) decline in the demand for convenience foods D) decline in the demand for financial services E) steady increase in global enterprises Answer: B 66) Which of the following demographic trends is the most likely cause for a rapid increase in telecommuting? A) the migration toward micropolitan and suburban areas B) the migration from rural to metropolitan areas C) the increasing number of traditional households D) the growing percentage of married couples who do not have children E) the declining number of manufacturing workers in today's workforce Answer: A 67) Micropolitan areas are ________. A) likely to have a higher crime rate than metropolitan areas B) less likely to attract telecommuters C) likely to offer the same advantages as metropolitan areas D) less likely to offer market expansion opportunities E) generally unattractive to niche marketers Answer: C 68) In the United States, job growth currently is the weakest for ________. A) white collar workers B) manufacturing workers C) salespeople D) telecommuters E) professional workers Answer: B 69) Currently, in the United States, job growth is the strongest for ________. A) blue collar workers B) manufacturing workers C) professional workers D) construction workers E) sanitation workers Answer: C 70) 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 20 percent of the people living in the United States were born in another country. C) By 2050, the Asian population is estimated to remain at 4.7 percent. D) By 2060, Hispanics are estimated to be 28 percent of the population. E) The United States has become more of a "melting pot" than a "salad bowl." Answer: D 71) By 2060, ________ will be an estimated 14 percent of the U.S. population. A) African Americans B) Asians C) Hispanics D) Native Americans E) Native Hawaiians Answer: A 72) Which of the following situations is expected to enhance the use of targeted advertising messages by marketers? A) increase in derived demand in the market B) increase in ethnic populations C) rising global inflation rates D) inadequate quality control E) low advertising budgets Answer: B 73) With an expected increase in ethnic diversity within the American population, marketers are most likely to place a greater emphasis on ________. A) geographic segmentation B) targeted advertising messages C) mass marketing D) "do well by doing good" missions E) corporate giving Answer: B 74) Soon-Yi Park's chain of travel agencies has identified the lesbian, gay, bisexual, and transgender community as a growing market that spends an increasing percentage of its income on travel. Which of the following would be the LEAST effective component of a marketing plan for Soon-Yi to take advantage of this opportunity? A) develop a presence on LGBT-oriented social networking sites B) position his agency as focused on specialized experiences C) implement a mass marketing campaign D) place specially targeted ads in gay-themed publications E) advertise on LOGO, the cable television network aimed at gays and lesbians and their friends and family Answer: C 75) Which of the following is true with regard to the diversity segment of U.S. adults with disabilities? A) Most individuals with disabilities are active consumers. B) The market represented by U.S. adults with disabilities is smaller than that represented by African Americans or Hispanics. C) The diversity segment, U.S. adults with disabilities, is a rather unattractive segment for the tourism industry. D) The annual spending power of U.S. adults with disabilities is less than $100 billion. E) Most companies are reluctant to reach out to consumers with disabilities. Answer: A 76) The economic environment consists of economic factors that affect ________. A) cultural patterns of communities B) entrepreneurial orientation of a population C) the quality of technological innovation D) consumer purchasing power E) the natural environment Answer: D 77) Consumers' spending patterns since the Great Recession include ________. A) spending freely, without caution B) buying less and looking for greater value in what they buy C) amassing record levels of debt D) experiencing rapid increases in housing values E) participating in a booming stock market Answer: B 78) Which of the following is an accurate statement about the income distribution of the American population? A) The top 20 percent of earners achieves 68 percent of the country's adjusted gross income. B) The bottom 40 percent of earners captures just 11 percent of total income. C) The top 5 percent of American earners captures 18 percent of all income. D) The distribution of income allows most companies to target earners of all income levels. E) Changes in income and interest rates minimally impact spending patterns. Answer: B 79) A value marketer is most likely to ________. A) offer consumers superior quality of goods and services at a very high price B) offer consumers only those products that are associated with status and prestige C) offer consumers low quality goods and services at very low prices D) offer consumers a balanced combination of product quality at a fair price E) deny discounts to consumers to increase profits Answer: D 80) Which of the following statements about income distribution in the United States is NOT true? A) Over the past several decades, the rich have grown richer. B) Over the past several decades, the middle class has grown faster than other classes. C) Over the past several decades, the poor have remained poor. D) The top 20 percent of earners capture over 50 percent of all income. E) The top five percent of American earners get nearly 22 percent of the country's adjusted gross income. Answer: B Refer to the scenario below to answer the following question(s). Casey Brickly opened The Landing, a convenience store on the north shore of Witmer Lake, in 1962. With a sandwich counter on one side and a bait shop and grocery on the other, The Landing was an immediate hit with weekend lake visitors and local residents alike. In the summer, boaters parked at the piers and bought all their fishing needs, such as rods and reels, bait, snacks, and soft drinks at The Landing. Even during the winter months, snowmobilers and ice fishermen were lured to The Landing for snacks and hot coffee or hot chocolate. As time passed, the business changed and grew tremendously. What was formerly a weekend tourist area gradually became a full-fledged residential area. Many of the houses, which were built as cottages in the 1950s and 1960s, were remodeled into residential homes. By the end of the 1970s, the days of small motorboats and 10 mile-per-hour speed limits were gone; skiing and fast speedboats became the rage. Through it all, The Landing continued to attract flocks of patrons. In the 1980s, however, Casey started to realize that the grocery area in The Landing could not compete with larger local retailers. He eventually enlarged the sandwich counter, transforming the bait shop and grocery into a restaurant with a full menu typical of any diner. "Getting rid of the bait shop was hard to do," Casey admitted. "I still had a summer crowd that relied on us for their fishing needs, but we couldn't survive a whole year on four months of profit." In the early 2000s, the atmosphere of Witmer Lake and the neighboring lakes became upscale. "I could see that people were spending more on their speed boats than what they had originally paid for their cottages!" Casey exclaimed. Many of the cottages were inherited by children and grandchildren of the original owners. Once again, the scene started to change as many of the lake houses were used only as weekend lake homes. Unlike the previous generation, a vast number of the current owners could afford to live closer to their jobs while maintaining lake homes. "At this point, business wasn't growing," Casey said. As local competition continued to increase, Casey converted the diner of The Landing into a bar with a lounge area. "The change might have been too drastic," Casey said, "but it was the only way we could maintain a strong, year-round business in spite of the population shifts and competitive forces." 81) Which of the following is the macroenvironmental force that has had the greatest effect on The Landing? A) the demographic environment B) the technological environment C) marketing intermediaries D) the political environment E) citizen-action publics Answer: A 82) Which of the following generational groups is most likely to represent the present owners of cottages surrounding Witmer Lake? A) Baby Boomers B) Echo Boomers C) Gen Xers D) Lost Generation E) Millennials Answer: C 83) The demographic environment is of major interest to marketers because it involves people, and people make up markets. Answer: TRUE 84) The single most important demographic trend in the United States that marketers should understand is the changing family structure of the population. Answer: FALSE 85) As baby boomers reach their peak earning and spending years, they become lucrative markets for financial services, travel, and entertainment. Answer: TRUE 86) Millennials comprise the most financially affluent group in America today. Answer: FALSE 87) The Gen Xers are increasingly displacing the lifestyles, culture, and values of the baby boomers. Answer: TRUE 88) Millennials represent a larger demographic segment than the baby boomers or Gen Xers. Answer: TRUE 89) Marketers must increasingly consider the special needs of traditional households because this segment of the population is growing more rapidly than nontraditional households. Answer: FALSE 90) The American workforce today is less white-collar than in the late twentieth century. Answer: FALSE