Gathering Information and Scanning The Environment: General Concept Questions Multiple Choice

Chapter 3:
Gathering Information and Scanning the Environment

GENERAL CONCEPT QESTIONS
!"#tip#e Choice
1. The major responsibility for identifying significant marketplace changes falls to the
________.
a. U.S. Department of Labor
b. companys marketers
c. American arketing Association
d. ind!stry lobby gro!ps fo!nd in "ashington# D.$.
e. marketing research ind!stry
Ans%er& b 'age& () Le*el of diffic!lty& +asy
). arketers ha*e e,tensi*e information abo!t ho% cons!mption patterns *ary across
co!ntries. -n a per capita basis %ithin "estern +!rope# the ________ smoke the
most cigarettes.
a. S%iss
b. .reeks
c. /rish
d. A!strians
e. 0rench
Ans%er& d 'age& () Le*el of diffic!lty& 1ard
2. All of the follo%ing 3!estions +4$+'T ________# %o!ld be considered to be forms
of information needs probes.
a. "hat decisions do yo! reg!larly make5
b. "hat information do yo! need to make decisions5
c. "hat data analysis programs %o!ld yo! %ant5
d. "hat maga6ines and trade reports %o!ld yo! like to see on a reg!lar basis5
e. "hat prod!cts %o!ld be most closely matched to cons!mer needs5
Ans%er& e 'age& (2 Le*el of diffic!lty& edi!m
78
'art )& $apt!ring arketing /nsights
9. ________ consists of people# e3!ipment# and proced!res to gather# sort# analy6e#
e*al!ate# and distrib!te needed# timely# and acc!rate 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
Ans%er& a 'age& (2 Le*el of diffic!lty& edi!m
:. The companys marketing information system sho!ld be a cross bet%een %hat
managers think they need# %hat managers really need# and ________.
a. %hat the marketing research department is able to do
b. %hat cons!mers are %illing to share
c. %hat the competition is doing
d. %hat is acceptable ind!stry practice
e. %hat is economically feasible
7. arketing managers rely on internal reports. ;y analy6ing this information# they can
spot ________.
a. micro<markets
b. opport!nities and problems
c. macro<markets
d. competiti*e strategies
e. cons!mer demographic !nits
Ans%er& b 'age& (2 Le*el of diffic!lty& +asy
(. The heart of the internal records system is the ________.
a. database
b. asset ac3!isition process
c. order<to<payment cycle
d. ser*ice consideration
e. information li3!idity ratio
Ans%er& c 'age& (2 Le*el of diffic!lty& 1ard
=. "hen a marketer >mines? his or her companys database# fresh insights can be gained
into neglected c!stomer segments# ________# and other !sef!l information.
a. recent c!stomer trends
b. long<term competiti*e trends
c. possible ne% in*entions
d. possible ne% technologies
e. ne% primary data possibilities
Ans%er& a 'age& (9 Le*el of diffic!lty& edi!m
71
$hapter 2& .athering /nformation and Scanning the +n*ironment
@. The internal records system s!pplies res!lts data# b!t the marketing intelligence
system s!pplies ________ data.
a. conc!rrent
b. secondary
c. research
d. happenings
e. premi!m
Ans%er& d 'age& (9 Le*el of diffic!lty& edi!m
18. A ________ is a set of proced!res and so!rces managers !se to obtain e*eryday
information abo!t de*elopments in the marketing en*ironment.
a. marketing research system
b. marketing information system
c. prod!ct management system
d. marketing intelligence system
e. *ertical system
Ans%er& d 'age& (9 Le*el of diffic!lty& edi!m
11. A company can take se*eral steps to impro*e the 3!ality of its marketing intelligence.
/f the company p!rchases competiti*e prod!cts for st!dy# attends open ho!ses and
trade sho%s# and reads competitors p!blished reports and stockholder information#
the company is !sing ________ to impro*e the 3!ality of its marketing intelligence.
a. sales force s!rrogates
b. intermediaries
c. e,ternal net%orks
d. ad*isory panels
e. c!stomer feedback systems
Ans%er& c 'ages& (9A(: Le*el of diffic!lty& 1ard
1). All of the follo%ing %o!ld be considered to be steps to impro*e the 3!ality of
marketing intelligence in a company +4$+'T ________.
a. a company can train and moti*ate the sales force to spot and report ne%
de*elopments
b. a company can !se g!errilla tactics s!ch as going thro!gh a competitors trash
c. a company can moti*ate intermediaries to pass along important information
d. a company can net%ork e,ternally
e. a company can p!rchase information from o!tside s!ppliers
Ans%er& b 'ages& (9A(7 Le*el of diffic!lty& +asy
7)
12. The )888 U.S. cens!s pro*ides an in<depth look at the pop!lation s%ings#
demographic gro!ps# regional migrations# and changing family str!ct!re of )=1B
million people. "hich of the follo%ing steps to impro*e the 3!ality of company
marketing intelligence system %o!ld be most closely associated the abo*e
ill!stration5
a. A company can p!rchase information from o!tside s!ppliers.
b. A company can take ad*antage of go*ernment data so!rces.
c. A company can !se online c!stomer feedback systems to collect data.
d. A company can net%ork e,ternally.
e. A company can !se its sales force to collect and report data.
Ans%er& b 'age& (7 Le*el of diffic!lty& +asy
19. There are fo!r main %ays that marketers can find rele*ant online information on
competitors prod!cts and %eaknesses# and s!mmary comments and o*erall
performance rating of a prod!ct# ser*ice# or s!pplier. ________ isCareD a type of site
that is concentrated in financial ser*ices and high<tech prod!cts that re3!ire
professional kno%ledge.
a. /ndependent c!stomer goods and ser*ice re*ie%s
b. Distrib!tor or sales agent feedback sites
c. $ombo<sites offering c!stomer re*ie%s and e,pert opinions
d. $!stomer complaint sites
e. Shopping bot ser*ice sites
Ans%er& c 'age& (( Le*el of diffic!lty& 1ard
1:. A ________ is >!npredictable# short<li*ed# and %itho!t social# economic# and political
significance.?
a. fad
b. fashion
c. trend
d. megatrend
e. style
Ans%er& a 'age& (( Le*el of diffic!lty& edi!m
17. A ________ is a direction or se3!ence of e*ents that has some moment!m and
d!rabilityE the shape of the f!t!re is re*ealed and many opport!nities are pro*ided.
a. fad
b. fashion
c. trend
d. megatrend
e. style
Ans%er& c 'age& (( Le*el of diffic!lty& 1ard
72
1(. ________ ha*e been described as >large social# economic# political and technological
changes FthatG are slo% to form# and once in place# they infl!ence !s for some timeH
bet%een se*en and ten years# or longer.
a. 0ads
b. 0ashions
c. Trends
d. egatrends
e. Styles
Ans%er& d 'age& (( Le*el of diffic!lty& edi!m
1=. "hich of the follo%ing minority gro!ps in the United States has been associated %ith
one of the ten megatrends shaping the cons!mer landscape5
a. African Americans
b. Asian Americans
c. +!ropean Americans
d. 1ispanic Americans
e. iddle +astern Americans
Ans%er& d 'age& (= Le*el of diffic!lty& edi!m
1@. The beginning of the ne% cent!ry bro!ght a series of ne% challenges. All of the
follo%ing %o!ld be considered to be among those challenges +4$+'T ________.
a. a deterioration of inno*ati*e ideas
b. steep decline of the stock market
c. increasing !nemployment
d. corporate scandals
e. the rise of terrorism
Ans%er& a 'age& (= Le*el of diffic!lty& edi!m
)8. "ith the rapidly changing global pict!re# the firm m!st monitor si, major forces. All
of the follo%ing %o!ld be among those forces +4$+'T ________.
a. demographic
b. economic
c. social<c!lt!ral
d. nat!ral
e. promotional
Ans%er& e 'age& (= Le*el of diffic!lty& +asy
)1. The main demographic force that marketers monitor isCareD ________.
a. s!ppliers
b. competitors
c. comm!nication Cs!ch as ad*ertisingD
d. go*ernment reports dealing %ith birth rates
e. pop!lation
Ans%er& e 'age& (@ Le*el of diffic!lty& +asy
79
)). The pop!lation e,plosion has been a so!rce of major concern. Unchecked pop!lation
gro%th and cons!mption co!ld e*ent!ally res!lt in all of the follo%ing +4$+'T
________.
a. ins!fficient food s!pply
b. depletion of key minerals
c. o*ercro%ding
d. restrictions on competition
e. poll!tion
Ans%er& d 'age& (@ Le*el of diffic!lty& +asy
)2. -ne impact of e,plosi*e pop!lation gro%th is ill!strated by the case of $hina. The
$hinese go*ernment passed reg!lations limiting families to one child. -ne
conse3!ence of these reg!lations is that ________.
a. the children are so f!ssed o*er and spoiled that they become >little emperors?
b. school enrollments are dropping
c. the fledgling a!tomoti*e b!siness in $hina %ill not ha*e c!stomers in a fe% years
d. open rebellion is being preached
e. >child<oriented b!sinesses? ha*e fe% c!stomers
Ans%er& a 'age& =8 Le*el of diffic!lty& edi!m
)9. A significant fact abo!t pop!lation gro%th and pop!lation shifts is that in )889 or
)88:# ________.
a. the yo!th market %ill e,ceed that of the ad!lt market
b. people o*er the age of 78 %ill o!tn!mber those !nder fi*e years of age
c. baby boomers %ill be eclipsed by .en 4 yo!ng ad!lts
d. most age gro!p segments %ill be abo!t e3!al
e. .en I yo!ng ad!lts %ill s!rpass the baby boomers as the largest age segment
Ans%er& b 'age& =8 Le*el of diffic!lty& 1ard
):. "hich of the follo%ing age gro!ps is tho!ght to control three<3!arters of the
co!ntrys %ealth5
a. 8A)8 age segment
b. 78B age segment
c. )8A28 age segment
d. 28A98 age segment
e. 98B age segment
Ans%er& e 'age& =1 Le*el of diffic!lty& 1ard
7:
)7. At one time the United States %as called a >melting pot? society beca!se of the
n!mber of different c!lt!res that %ere integrated into the U.S. c!lt!re. Today# the
United States is described as a ________ society beca!se many ethnic gro!ps are
maintaining their ethnic differences# neighborhoods# and c!lt!res.
a. >boiling pot?
b. >salad bo%l?
c. >banana split?
d. >do!bled !p?
e. >non<comm!nicati*e?
Ans%er& b 'age& =1 Le*el of diffic!lty& edi!m
)(. According to the )888 cens!s# the U.S. pop!lation of )(7.) million %as () percent
%hite and ________ percent African American. The remainder consisted of 1ispanic
Americans and other minorities.
a. )8
b. 1=
c. 1:
d. 12
e. 11
Ans%er& d 'age& =1 Le*el of diffic!lty& 1ard
)=. Di*ersity goes beyond ethnic and racial markets. ore than ________ million
Americans ha*e disabilities# and they constit!te a market for home deli*ery
companies Cand othersD.
a. :8
b. 98
c. 28
d. )8
e. 18
Ans%er& a 'age& =2 Le*el of diffic!lty& 1ard
)@. "hich of the follo%ing co!ntries is kno%n for ha*ing @@ percent of its pop!lation
literate5
a. +ngland
b. .ermany
c. 0rance
d. United States
e. Japan
Ans%er& e 'age& =2 Le*el of diffic!lty& edi!m
77
28. The ________ ho!sehold consists of a h!sband# %ife# and children Cand sometimes
grandparentsD.
a. >traditional?
b. >e,tended?
c. >di*ersity?
d. >modern?
e. >re*ised?
Ans%er& a 'age& =2 Le*el of diffic!lty& edi!m
21. arried co!ple ho!seholdsHthe dominant cohort since the form!lation of the United
StatesHhas slipped from nearly =8 percent in the 1@:8s to aro!nd ________ percent
today.
a. (8
b. 78
c. :8
d. 98
e. 2:
Ans%er& c 'age& =2 Le*el of diffic!lty& 1ard
2). The t%enty<first cent!ry sa% ________ markets gro% more rapidly again d!e to a
higher birth rate# a lo%er death rate# and rapid gro%th from foreign immigration.
a. s!b!rban
b. !rban
c. r!ral
d. coastal
e. secondary
22. The mo*ement by pop!lation to the ________ has lessened the demand for %arm
clothing and home heating e3!ipment and increased demand for air conditioning.
a. .rainbelt
b. 'acific Korth%est
c. S!nbelt
d. id<$oastal areas
e. 1eartland
Ans%er& c 'age& =9 Le*el of diffic!lty& +asy
7(
29. arketers look at %here cons!mers are gathering. Almost one in ________ people
o*er the age of fi*e C1)8 millionD mo*ed at least one time bet%een 1@@: and )888#
according to a $ens!s )888 brief.
a. t%o
b. three
c. fo!r
d. fi*e
e. ten
Ans%er& a 'age& =: Le*el of diffic!lty& 1ard

2:. /n %hich of the follo%ing economies %o!ld %e e,pect to find fe% opport!nities for
marketers5
a. /nd!striali6ing economies.
b. Land<locked economies.
c. La%<material<e,porting economies.
d. /nd!strial economies.
e. S!bsistence economies.
Ans%er& e 'age& =7 Le*el of diffic!lty& +asy
27. According to information presented in the te,t# %hich of the follo%ing co!ntries is
s!rprisingly a *ery good market for Lamborghini a!tomobiles Ccosting more than
M1:8#888D beca!se of the n!mber of %ealthy families that can afford e,pensi*e cars.
a. .reece
b. S%it6erland
c. 1olland
d. L!ssia
e. 'ort!gal
Ans%er& e 'age& =7 Le*el of diffic!lty& 1ard
2(. -*er the past three decades in the United States# the rich ha*e gro%n richer and the
middle class has ________.
a. stayed abo!t the same
b. shr!nk
c. increased slightly
d. matched the rich in terms of relati*e gro%th
e. been ignored beca!se of problems %ith the poorer classes
2=. ________ shapes the beliefs# *al!es# and norms that largely define the tastes and
preferences.
a. arketing
b. The mass media
c. .o*ernment
d. 'rod!ction inno*ation and engineering
e. Society
Ans%er& e 'age& =( Le*el of diffic!lty& edi!m
7=
2@. /f a cons!mer li*es the lifestyle of a >pleas!re seeker? or goes on a >self<reali6ation?
3!est# he or she is e,pressing %hat is called ________.
a. *ie%s of others
b. *ie%s of society
c. *ie%s of themsel*es
d. *ie%s of organi6ations
e. *ie%s of the !ni*erse
Ans%er& c 'ages& =(A== Le*el of diffic!lty& +asy
98. According to the information fo!nd in the social<c!lt!ral en*ironment# %ith respect to
views of others, ________ are considered to be things that allo% people %ho are alone
to feel they are not Ce.g.# tele*ision# home *ideo games# and chat rooms on the
/nternetD.
a. social s!rrogates
b. s!bliminal fantasies
c. relationship a*oidance
d. primary prod!cts
e. secondary prod!cts
Ans%er& a 'age& == Le*el of diffic!lty& edi!m
91. Today# corporations need to make s!re that they are good corporate citi6ens and that
their cons!mer messages are honest. S!ch a *ie% %o!ld be consistent %ith %hich of
the follo%ing *ie%s5
a. Nie%s of others.
b. Nie%s of organi6ations.
c. Nie%s of themsel*es.
d. Nie%s of the !ni*erse.
e. Nie%s of society.
Ans%er& b 'age& == Le*el of diffic!lty& +asy
9). 'eople *ary in their attit!des to%ard their society. ________ !s!ally li*e more
fr!gally# dri*e smaller cars# and %ear simpler clothing.
a. akers
b. +scapers
c. Seekers
d. $hangers
e. De*elopers
Ans%er& d 'age& == Le*el of diffic!lty& 1ard
7@
92. 'eople *ary in their attit!des to%ard society and react accordingly. ________ are a
major market for mo*ies# m!sic# s!rfing# and camping.
a. akers
b. 'reser*ers
c. +scapers
d. $hangers
e. De*elopers
Ans%er& c 'age& == Le*el of diffic!lty& +asy
99. All of the follo%ing ha*e been cited by the te,t as being among Americans core
*al!es +4$+'T ________.
a. they belie*e in %ork
b. they belie*e in getting married
c. they belie*e in gi*ing to charity
d. they belie*e in being honest
e. they belie*e in se,!al permissi*eness
Ans%er& e 'age& == Le*el of diffic!lty& +asy
9:. "hich of the follo%ing %o!ld be the best ill!stration of a secondary belief or *al!e5
a. ;elief in %ork.
b. ;elief in gi*ing to charity.
c. ;elief in getting married.
d. ;elief in getting married early.
e. ;elief in being honest.
Ans%er& d 'age& == Le*el of diffic!lty& edi!m
97. "hich of the follo%ing is by far the most pop!lar American leis!re acti*ity in that it
is preferred by :@ percent of ad!lts %ho participate in s!ch acti*ities5
a. .ardening.
b. "alking for e,ercise.
c. S%imming.
d. 'hotography.
e. Jogging or r!nning.
Ans%er& b 'age& =@ Le*el of diffic!lty& edi!m
9(. +ach society contains ________# gro!ps %ith shared *al!es emerging from their
special life e,periences or circ!mstances.
a. demographic segments
b. cli3!es
c. cons!mer b!ndles
d. s!bc!lt!res
e. beha*ioral niches
Ans%er& d 'age& =@ Le*el of diffic!lty& edi!m
(8
9=. "hich of the follo%ing %o!ld be the best ill!stration of a s!bc!lt!re5
a. A softball team.
b. A !ni*ersity al!mni association.
c. Teenagers.
d. A ;oy Sco!t troop.
e. 0re3!ent flyers.
Ans%er& c 'age& =@ Le*el of diffic!lty& edi!m
9@. All of the follo%ing +4$+'T ________ ha*e been fo!nd to infl!ence yo!ng people
today and ca!se a shift of secondary cores *al!es for this gro!p.
a. U)s ;ono.
b. +l*is 'resley.
c. The K;As Le;ron James.
d. .olfs Tiger "oods.
e. Skateboarder Tony 1a%k.
Ans%er& b 'age& =@ Le*el of diffic!lty& +asy
:8. Altho!gh core *al!es are fairly persistent# c!lt!ral s%ings do take place. ________
ca!sed s!ch a s%ing in the 1@78s.
a. 0ord otor $ompany
b. .eorge c.o*ern
c. ../. Joe action characters
d. The infomercial
e. The ;eatles
Ans%er& e 'age& =@ Le*el of diffic!lty& edi!m
:1. arketers need to be a%are of threats and opport!nities associated %ith fo!r trends in
the nat!ral en*ironment. All of the follo%ing are among those trends +4$+'T
________.
a. the shortage of ra% materials
b. the increased cost of energy
c. near @8 percent corporate s!pport for >green ca!ses?
d. increased poll!tion le*els
e. the changing role of go*ernments
Ans%er& c 'age& @8 Le*el of diffic!lty& +asy
:). "ith respect to the shortage of ra% materials# air and %ater are classified as
________ reso!rces. 1o%e*er# as %e kno%# problems are beginning to plag!e both
o!r air and %ater 3!ality.
a. infinite
b. near finite
c. finite rene%able
d. finite nonrene%able
e. absol!te
Ans%er& a 'age& @8 Le*el of diffic!lty& edi!m
(1
:2. -ne finite nonrene%able reso!rce# ________# has created serio!s problems for the
%orld economy. ;eca!se of anticipated shortages# in*estment and commodity
markets ha*e had %ild s%ings.
a. %ater
b. air
c. s!gar
d. coffee
e. oil
Ans%er& e 'age& @8 Le*el of diffic!lty& +asy
:9. 0rom a branding perspecti*e# >green marketing? programs ha*e not been entirely
s!ccessf!l. ________ has been cited as one of the obstacles that m!st be o*ercome
for >green marketing? programs to be more s!ccessf!l.
a. -*ere,pos!re and lack of credibility
b. 1igh cost
c. 'oor promotions
d. Lesistance by the yo!th segment in the marketplace
e. Lack of s!pport by go*ernmental agencies and concerns
Ans%er& a 'age& @1 Le*el of diffic!lty& 1ard
::. "hich of the follo%ing co!ntries is noted for their >green mo*ement? and s!pport
%ithin its go*ernment for en*ironmental 3!ality enhancement5
a. e,ico
b. $hina
c. .ermany
d. +ngland
e. /taly
Ans%er& c 'age& @1 Le*el of diffic!lty& edi!m
:7. The marketer sho!ld monitor the follo%ing trends in technology# +4$+'T ________#
if progress is to be made in b!siness.
a. the pace of change
b. the diffic!lties fo!nd in sharing information
c. the opport!nities for inno*ation
d. *arying LOD b!dgets
e. increased reg!lation
Ans%er& b 'age& @) Le*el of diffic!lty& 1ard
:(. According to some ind!stry analysts and in*entors# ________ %ill e*ent!ally eclipse
the '$ as o!r most important technological de*ice.
a. i'od
b. 1DTN
c. holographic tele*ision
d. the mobile phone
e. solar<po%ered car
Ans%er& d 'age& @) Le*el of diffic!lty& edi!m
()
:=. All of the follo%ing %ill most likely be among the ad*antages for a society that
embraces telecomm!ting as an employmentPcomm!nication alternati*e +4$+'T
________.
a. red!ction of a!to poll!tion
b. bringing the family closer together
c. increased bon!ses and compensation perks
d. creating more home<centered shopping
e. entertainment centered on the home en*ironment
Ans%er& c 'age& @) Le*el of diffic!lty& edi!m
:@. ________ legislation has as its p!rposes to protect companies from !nfair
competition# to protect cons!mers from !nfair b!siness practices# and to protect the
interests of society from !nbridled b!siness beha*ior.
a. ;!siness
b. $ons!mer
c. ;i<partisan
d. Acti*ist
e. .lobal
Ans%er& a 'age& @9 Le*el of diffic!lty& +asy
78. An important force affecting b!siness is the ________Ha mo*ement of citi6ens and
go*ernment organi6ed to strengthen the rights and po%ers of b!yers in relation to
sellers.
a. lobbyist mo*ement
b. cons!merist mo*ement
c. en*ironmental mo*ement
d. self<rights mo*ement
e. ethical reform mo*ement
Ans%er& b 'age& @: Le*el of diffic!lty& edi!m

Tr"e$%a#&e
71. The major responsibility for identifying significant marketplace changes falls to the
companys marketers.
Ans%er& Tr!e 'age& () Le*el of diffic!lty& +asy
7). Today# most firms are rather sophisticated abo!t gathering information.
Ans%er& 0alse 'age& () Le*el of diffic!lty& edi!m
72. A marketing information system is de*eloped from internal company records#
marketing intelligence# and promotional models s!pplied by the marketing
department.
Ans%er& 0alse 'age& (2 Le*el of diffic!lty& edi!m
(2
79. The heart of the internal records system is the bar code.
7:. According to principles fo!nd in database constr!ction and !sage# a >carpet bombing?
mail o!t of a ne% offer is !s!ally the most s!ccessf!l strategy.
77. The internal records system s!pplies results data# b!t the marketing intelligence
system s!pplies happenings data.
Ans%er& Tr!e 'age& (9 Le*el of diffic!lty& +asy
7(. /f a company %ere p!rs!ing a policy of net%orking e,ternally it might collect
competitors ads or look !p ne%s stories abo!t competitors.
Ans%er& Tr!e 'age& (: Le*el of diffic!lty& edi!m
7=. -ne of the %ays to find rele*ant online information on competitors strengths and
%eaknesses might be to fre3!ent distrib!tor or sales agent feedback sites.
Ans%er& Tr!e 'age& (7 Le*el of diffic!lty& edi!m
7@. A style is !npredictable# short<li*ed# and %itho!t social# economic# and political
significance.
Ans%er& 0alse 'age& (( Le*el of diffic!lty& edi!m
(8. A megatrend has been described as being %hat follo%s all fads that stay on the
market at least one year.
Ans%er& 0alse 'age& (( Le*el of diffic!lty& edi!m
(1. -ne of the ten significant megatrends that %ill impact marketing efforts in the f!t!re
is delayed retirement.
Ans%er& Tr!e 'age& (= Le*el of diffic!lty& edi!m
(). icroen*ironmental forces ha*e been labeled as being >!ncontrollable.?
Ans%er& 0alse 'age& (= Le*el of diffic!lty& edi!m
(2. The main demographic force that marketers monitor is pop!lation.
Ans%er& Tr!e 'age& (@ Le*el of diffic!lty& edi!m
(9. /f the %orld %ere a *illage of 1#888 people# it %o!ld consist of :)8 men and 9=8
%omen.
Ans%er& 0alse 'age& (@ Le*el of diffic!lty& edi!m
(:. A gro%ing pop!lation al%ays means a gro%ing market.
Ans%er& 0alse 'age& =8 Le*el of diffic!lty& edi!m
(7. Japan has one of the %orlds oldest pop!lations.
Ans%er& Tr!e 'age& =8 Le*el of diffic!lty& edi!m
(9
((. According to pop!lation st!dies# .en 4 Cn!mbering () millionD is almost the same
si6e as the h!ge baby boomer market.
(=. At present the largest minority in the United States is the Latinos %ith 12 percent of
the total pop!lation.
(@. /n the United States# 18 to 1: percent of the pop!lation may be f!nctionally illiterate.
=8. ;ased on research done in +ngland# a concl!sion dra%n abo!t families is that >friends
are the ne% family.?
Ans%er& Tr!e 'age& =2 Le*el of diffic!lty& 1ard
=1. According to st!dies of minority markets# the disabled market is ten times more likely
to be in a professional job# almost t%ice as likely to o%n a *acation home# eight times
more likely to o%n a notebook comp!ter# and t%ice as likely to o%n indi*id!al stocks
as compared to the general pop!lation.
=). Urban markets are once again gro%ing beca!se of higher birth rates# a lo%er death
rate# and rapid gro%th from foreign immigration.
=2. The small officeHhome office segment of o!r society has gro%n to nearly 98
millionE thereby# boosting the sales of electronic con*eniences and ready to assemble
f!rnit!re.
Ans%er& Tr!e 'age& =: Le*el of diffic!lty& edi!m
=9. Almost one in t%o people o*er the age of fi*e C1)8 millionD mo*ed at least one time
bet%een 1@@: and )888# according to a $ens!s )888 brief.
Ans%er& Tr!e 'age& =: Le*el of diffic!lty& edi!m
=:. A*ailable p!rchasing po%er in an economy depends on mainly one facetHs!pply and
demand.
Ans%er& 0alse 'age& =: Le*el of diffic!lty& +asy
=7. A good ill!stration of a ra%<material e,porting economy is +gypt.
Ans%er& 0alse 'age& =7 Le*el of diffic!lty& 1ard
=(. $on*entional retailers %ho offer medi!m<priced goods are the most *!lnerable to the
gro%ing trend in the United States called a t%o<tier market.
Ans%er& Tr!e 'age& =7 Le*el of diffic!lty& 1ard
(:
==. Thro!gh o!tso!rcing# companies can feasibly c!t bet%een )8 to (8 percent of their
labor costs.
Ans%er& Tr!e 'age& =( Le*el of diffic!lty& +asy
=@. >'leas!re seekers? of the 1@(8s had their beliefs# *al!es# and norms shaped by views
of others.
Ans%er& 0alse 'ages& =(A== Le*el of diffic!lty& edi!m
@8. /f a single person has a home entertainment system that is rich in tele*ision
capabilities and home *ideo games# he or she may be !sing s!ch a system as a >social
s!rrogate.?
Ans%er& Tr!e 'age& == Le*el of diffic!lty& edi!m
@1. /n recent years# beca!se of a to!gh job market# there has been an increasing amo!nt
of organi6ational loyalty among most employees.
Ans%er& 0alse 'age& == Le*el of diffic!lty& edi!m
@). /f a yo!ng college st!dent decides to join the military to defend the principles of his
or her co!ntry# the st!dent %o!ld be classified as a >changer.?
Ans%er& 0alse 'age& == Le*el of diffic!lty& edi!m
@2. ost Americans still belie*e in getting married as a core belief.
Ans%er& Tr!e 'age& == Le*el of diffic!lty& +asy
@9. Teenagers %o!ld be a good e,ample of a culture in the United States.
Ans%er& 0alse 'age& =@ Le*el of diffic!lty& edi!m
@:. arketers need to be a%are of the threats and opport!nities associated %ith the trend
to%ard increased poll!tion le*els.
Ans%er& Tr!e 'age& @8 Le*el of diffic!lty& edi!m
@7. Lesearch st!dies ha*e sho%n that cons!mers as a %hole may not be %illing to pay a
premi!m for en*ironmental benefits.
Ans%er& Tr!e 'age& @1 Le*el of diffic!lty& +asy
@(. +*ery ne% technology is a force for >creati*e destr!ction.?
Ans%er& Tr!e 'age& @) Le*el of diffic!lty& +asy
@=. Nirt!al reality is gi*ing cons!mers %hat they dream abo!t.
Ans%er& 0alse 'age& @2 Le*el of diffic!lty& edi!m
@@. -ne of the major trends in the political<legal en*ironment is the trend to%ard the
gro%th of special interest gro!ps.
Ans%er& Tr!e 'age& @2 Le*el of diffic!lty& +asy
(7
188. Today# c!stomers are still %illing to s%ap personal information for c!stomi6ed
prod!cts from firms.
Ans%er& Tr!e 'age& @: Le*el of diffic!lty& +asy
E&&a'
181. Describe a marketing information system C/SD. 0rom %hat so!rces is the /S
de*eloped5
S"gge&ted An&(er: A marketing information system (MIS) consists of people#
e3!ipment# and proced!res to gather# sort# analy6e# e*al!ate# and distrib!te
needed# timely# and acc!rate information to marketing decision makers. A
marketing information system is de*eloped from internal company records#
marketing intelligence acti*ities# and marketing research.
'age& (2 Le*el of diffic!lty& edi!m
18). Describe the order<to<payment cycle and %hy it is important to internal records
information keeping.
S"gge&ted An&(er: The heart of the internal records system is the order<to<
payments cycle. Sales representati*es# dealers# and c!stomers send orders to the
firm. The sales department prepares in*oices and transmits copies to *ario!s
departments. -!t<of<stock items are back ordered. Shipped items are
accompanied by shipping and billing doc!ments that are sent to *ario!s
departments. Todays companies m!st perform these steps 3!ickly and acc!rately.
182. "hat are the *ario!s steps to impro*e the 3!ality of its marketing intelligence
f!nction that can be taken by a company5
S"gge&ted An&(er: The steps are& C1D a company can train and moti*ate the sales
force to spot and report ne% de*elopmentsE C)D a company can moti*ate
distrib!tors# retailers# and other intermediaries to pass along important
intelligenceE C2D a company can net%ork e,ternallyE C9D a company can set !p a
c!stomer ad*isory panelE C:D a company can take ad*antage of go*ernment data
reso!rcesE C7D a company can p!rchase information from o!tside s!ppliers# and
C(D a company can !se online c!stomer feedback systems to collect competiti*e
intelligence.
'ages& (9A(7 Le*el of diffic!lty& 1ard
((
189. List and briefly describe the fo!r main %ays marketers can find rele*ant online
information on competitors strengths and %eaknesses# and s!mmary comments
and o*erall performance rating of a prod!ct# ser*ice# or s!pplier.
S"gge&ted An&(er: The fo!r %ays are& C1D independent c!stomer goods and
ser*ice re*ie% for!msE C)D distrib!tor or sales agent feedback sitesE C2D combo<
sites offering c!stomer re*ie% and e,pert opinionsE and C9D c!stomer complaint
sites.
'age& (( Le*el of diffic!lty& 1ard

18:. "hat is a >megatrend?5 ;riefly describe fi*e megatrends shaping the cons!mer
landscape.
S"gge&ted An&(er: A megatrend is a large# social# economic# political# and
technological change that is slo% to form# and once in place# infl!ences !s for
some time Ce.g.# bet%een se*en and ten years or longerD. The ten trends Cst!dents
disc!ss fi*eD disc!ssed in the te,t are C1D aging boomersE C)D delayed retirementE
C2D the changing nat!re of %orkE C9D greater ed!cational attainmentHespecially
among %omenE C:D labor shortagesE C7D increased immigrationE C(D rising 1ispanic
infl!enceE C=D shifting birth trendsE C@D %idening geographic differencesE and C18D
the changing age str!ct!re.
'ages& ((A(= Le*el of diffic!lty& 1ard
187. "hat is the main demographic force monitored by marketers5 "hy5
S"gge&ted An&(er: The main demographic force monitored by marketers is
pop!lation. The reason for its importance is beca!se people make !p markets.
arketers are keenly interested in the si6e and gro%th rate of pop!lation in cities#
regions# and nationsE age distrib!tion and ethnic mi,E ed!cational le*elsE
ho!sehold patternsE and regional characteristics and mo*ements.
'age& (@ Le*el of diffic!lty& edi!m
18(. Describe the t%o dominant >ho!sehold patterns? in the last :8 years.
S"gge&ted An&(er: The dominant patterns are& C1D the >traditional ho!sehold?
that consists of a h!sband# %ife# and children Cand sometimes grandparentsD. Iet#
in the United States today# one o!t of eight ho!seholds is >di*erse? or
>nontraditional#? and incl!des a *ariety of ho!sehold types and membersE and C)D
married co!ple ho!seholdsHthe dominant cohort since the formation of the
United StatesHha*e slipped from =8 percent in the 1@:8s to aro!nd :8 percent
today. Kearly 28 percent of ho!seholds are singles or li*e<alones.
'age& =2 Le*el of diffic!lty& edi!m
(=
18=. 'eople absorb# almost !nconscio!sly# a %orld*ie% that defines their relationships.
List and describe the >*ie%s? that assist or retard this relationship de*elopment
process.
S"gge&ted An&(er: The *ie%s are& C1D *ie%s of themsel*esE C)D *ie%s of othersE
C2D *ie%s of organi6ationsE C9D *ie%s of societyE C:D *ie%s of nat!reE and C7D *ie%s
of the !ni*erse. St!dents sho!ld characteri6e each based on materials presented in
the te,t.
'ages& =(A== Le*el of diffic!lty& 1ard
18@. Describe the differences bet%een a core belief and a secondary belief. List the
primary core beliefs of Americans as re*ealed by the te,t.
S"gge&ted An&(er: The people li*ing in a partic!lar society hold many core
beliefs and *al!es that tend to persist. ost Americans still belie*e in %ork# in
getting married# in gi*ing to charity# and in being honest. $ore beliefs and *al!es
are passed on from parents to children and are reinforced by major social
instit!tions Ce.g.# schools# ch!rches# b!sinesses# and go*ernmentsD. Secondary
beliefs and *al!es are more open to change. ;elie*ing in the instit!tion of
marriage is a core beliefE belie*ing that people o!ght to get married early is a
secondary belief. arketers ha*e some chance of changing secondary beliefs.
There is little chance to change a core belief or *al!es.
'ages& ==A=@ Le*el of diffic!lty& edi!m
118. any marketers ha*e tried and failed %ith >green sales pitches? Cappeals to ones
en*ironmental good senseD o*er the past decade. "hat obstacles Cas cited by the
te,tD did this mo*ement enco!nter5 ;e s!re to briefly e,plain each obstacle.
S"gge&ted An&(er: The obstacles %ere& C1D o*ere,pos!re and lack of credibilityE
C)D cons!mer beha*iorE and C2D poor implementation. 0or an e,planation of each
see chapter material.
'age& @1
Le*el of
diffic!lty&
edi!m
(@
APPLICATION QESTIONS
!"#tip#e Choice
111. D!'ont commissioned marketing st!dies to !nco*er personal pillo% beha*ior for
its Dacron 'olyester !nit that s!pplies filling to pillo% makers and sells its o%n
$omforel brand. "hich of the follo%ing %as re*ealed by research to be the
primary challenge faced by D!'ont in e,panding sales in the pillo% ind!stry5
a. 'rice.
b. 'eople dont %ant to gi*e !p their old pillo%s.
c. The smell associated %ith polyester.
d. The lack of a fa*orable rep!tation in the ind!stry.
e. $ompetition from $hina.
Ans%er& b 'age& () Le*el of diffic!lty& edi!m
11). Ass!me that yo! are a marketing information specialist for a large clothing
man!fact!rer. Io!r task is to get f!nctional managers to !se the companys /S
system on a more reg!lar basis. All of the follo%ing 3!estions are %o!ld be
among those that might be s!bmitted to those managers to pi3!e their interest in
/S +4$+'T# ________5
a. "hat is yo!r appraisal of the b!dget for yo!r f!nctional area this year
b. "hat decisions do yo! reg!larly make
c. "hat information do yo! need to make these decisions
d. "hat topics %o!ld yo! like to be kept informed of
e. "hat data analysis programs %o!ld yo! %ant
Ans%er& a 'age& (2 Le*el of diffic!lty& +asy
112. As the manager of an organi6ation that is attempting to b!ild a /S# yo! ha*e
been informed that a /S is b!ilt !pon three f!ndamental information so!rces.
The so!rces are ________# marketing intelligence acti*ities# and marketing
research.
a. e,ternal records and doc!ments
b. databases fo!nd on the /nternet
c. cons!ltant reports
d. internal company records
e. secondary data from go*ernment so!rces s!ch as the ;etter ;!siness ;!rea!
Ans%er& d 'age& (2 Le*el of diffic!lty& 1ard
=8
119. 'i66a 1!t has millions of c!stomer records gleaned from point<of<sale
transactions at its resta!rants. Using Teradata "areho!se iner# 'i66a 1!t has
not only been able to ________# b!t can also target its marketing to find the best
co!pon offers for each ho!sehold and predict the s!ccess of campaigns.
a. red!ce its o!tside research emphasis
b. increase profits dramatically
c. red!ce tele*ision ad*ertising
d. %in 3!ality a%ards
e. p!rge e,pensi*e d!plicates from its direct<mail campaigns
11:. As a manager yo! %o!ld most likely !se an internal records system to s!pply
________ data# %hereas# yo! %o!ld !se yo!r marketing intelligence system to
s!pply happenings data.
a. demand
b. logistical
c. psychographic
d. res!lts
e. primary
Ans%er& d 'age& (9 Le*el of diffic!lty& 1ard
117. "hen cDonalds !sed mystery shoppers to assess stores internal speed
standards# cDonalds %as !sing %hich of the follo%ing steps to impro*e its
marketing intelligence system5
a. A company can train and moti*ate the sales force to spot and report ne%
de*elopments.
b. A company can moti*ate distrib!tors# retailers# and other intermediaries to
pass along important intelligence.
c. A company can net%ork e,ternally.
d. A company can set !p an ad*isory panel.
e. A company can take ad*antage of go*ernment data so!rces.
Ans%er& b 'ages& (9A(7 Le*el of diffic!lty& edi!m
11(. +,amples of ________ that %ere considered to be s!ccessf!l for toy retailers %ere
;eanie ;abies# 0!rbies# and Tickle e +lmo dolls.
a. trends
b. fashions
c. fads
d. megatrends
e. styles
Ans%er& c 'age& (( Le*el of diffic!lty& edi!m
=1
11=. ore than half of all U.S. %orkers are employed in ________# in professional or
related occ!pations# or in a sales or other office<based position.
a. acco!nting
b. finance
c. comp!ter information systems
d. database maintenance
e. management
Ans%er& e 'age& (= Le*el of diffic!lty& 1ard
11@. As baby boomers gro% older# their impact on cons!mer spending can be
described as being ________.
a. s!bstantial C%itho!t o*erstatingD
b. marginal at best
c. eclipsed by the .eneration 4 members
d. only moderate
e. stymied by higher ta,es
Ans%er& a 'age& (= Le*el of diffic!lty& edi!m
1)8. According to information pro*ided in the te,t# ________ is an e,ample of a
co!ntry %ith a *ery yo!ng and rapidly e,panding pop!lation %here prod!cts s!ch
as milk# diapers# school s!pplies# and toys %o!ld be important.
a. Japan
b. 0rance
c. Spain
d. e,ico
e. the United Qingdom
1)1. ________ are typically cynical abo!t hard<sell marketing pitches that promise
more than they can deli*er.
;aby boomers
b. "ar babies
c. .eneration R
d. .eneration 4
e. Ket<gens
Ans%er& d 'age& =1 Le*el of diffic!lty& edi!m
=)
1)). A fre3!ently noted megatrend in the United States is the increase percentage of
________ in the total pop!lationE they made !p half of all ne% %orkers in the past
decade.
Asians Ce,cl!ding $hineseD
b. /ndians
c. $hinese
d. 1ispanics
e. Africans
Ans%er& D 'age& =1 Le*el of diffic!lty& edi!m
1)2. ;eca!se of heightened competition for top st!dents and concerns abo!t
instit!tional rep!tations and rankings# many !ni*ersities are no% increasing
marketing efforts %ith the p!rpose of ________.
a. creating *irt!al ed!cational processes
b. creating definable >brands?
c. stim!lating >f!n? on camp!s
d. managing organi6ational reso!rces
e. delaying belt<tightening in the f!t!re
1)9. "hat percentage of people CcohortsD in the United States are considered to be
married co!ple ho!seholds5
a. =8 percent
b. (8 percent
c. 78 percent
d. :8 percent
e. 98 percent
1):. Jason has j!st mo*ed in %ith se*eral friends in %hat might commonly be called a
>comm!ne.? As a )8<something# Jasons choice of li*ing style is e,emplified by
the term ________.
a. dropo!t
b. pse!do<technocrat
c. neo<tribe
d. socialist
e. fascist
Ans%er& c 'age& =2 Le*el of diffic!lty& edi!m
=2
1)7. The o!tso!rcing %a*e Ccomp!ter analysis and soft%are designD that has been
e,perienced by /ndia %ith its yo!ng technologically<proficient yo!nger generation
has had an impact on traditions as %ell as the economy. Io!ng /ndians
C>liberation children?D are 3!estioning ________.
the ta, system of the co!ntry
b. the political parties of /ndia for rele*ance
c. the meaning of life
d. their charitable responsibilities
e. conser*ati*e traditions s!ch as arranged marriages and no p!blic kissing
Ans%er& e 'age& =7 Le*el of diffic!lty& edi!m
1)(. "illiam rose rapidly in his organi6ation and %as the yo!ngest $+- in the
companys history. 1is self<declared p!rpose as a leader %as to make his
company an integral part of the American %ay of life and to e*ent!ally enter into
p!blic ser*ice of his co!ntry. "illiam %o!ld be characteri6ed as being a
________.
preser*er
b. maker
c. taker
d. seeker
e. reaper
Ans%er& b 'age& == Le*el of diffic!lty& edi!m
1)=. 1o% do Americans spend their leis!re timeH:@ percent of Americans Cthe
highest percentageD say that >%alking for e,ercise? is their primary %ay of
spending leis!re time. "hat is the second most mentioned leis!re acti*ity %ith 9:
percent5
a. S%imming
b. ;icycling
c. Jogging or r!nning
d. .ardening
e. 'o%er boating
Ans%er& d 'age& =@ Le*el of diffic!lty& 1ard
1)@. To get aro!nd obstacles to >green marketing? and make s!re en*ironmental
initiati*es are implemented# some companies recommend relying on the efforts of
a ________.
a. senior ethics officer
b. market ma*en
c. .reen $hampion
d. 1L *ice<president
e. %atch<dog committee
Ans%er& c 'age& @1 Le*el of diffic!lty& edi!m
=9
128. ________ lobby go*ernment officials and press!re b!siness e,ec!ti*es to pay
more attention to cons!mers rights# %omens rights# senior citi6ens rights#
minority rights# and gay rights.
a. 'olitical action committees C'A$sD
b. Uni*ersities and colleges
c. The ;etter ;!siness ;!rea!
d. The U.S. $hamber of $ommerce
e. an!fact!ring trade associations CTAsD
Ans%er& a 'age& @: Le*el of diffic!lty& +asy
Short An&(er
121. Altho!gh e*ery manager in an organi6ation needs to obser*e the o!tside
en*ironment# marketers ha*e t%o ad*antages. "hat are those t%o ad*antages5
S"gge&ted An&(er: The t%o ad*antages are& C1D they ha*e disciplined methods
for collecting information and C)D they spend more time interacting %ith
c!stomers and obser*ing competition.
'age& () Le*el of diffic!lty& edi!m
12). /f yo! %ere a companys marketing information manager# yo! %o!ld need to
reali6e that yo!r marketing information system sho!ld be a cross bet%een three
areas of concern Ctho!ghtsD for managers %ith respect to information. "hat are
those three concerns Ctho!ghtsD5
S"gge&ted An&(er: The three concerns Ctho!ghtsD are& C1D %hat managers think
they need# C)D %hat managers really need# and C2D %hat is economically feasible.
122. "hat typically %o!ld be the f!nction of a sales information system5 Think of an
e,ample to ill!strate s!ch a f!nction.
S"gge&ted An&(er: A sales information system typically s!pplies acc!rate and
timely reports on c!rrent sales. See the e,ample of "al<art and its sales
information system to add additional data to this 3!estion.
'age& (2 Le*el of diffic!lty& +asy
129. +,plain the statement that >internal records systems s!pply res!lts data and
marketing intelligence systems s!pply happenings data.?
S"gge&ted An&(er: The internal records system records Cand reportsD orders#
sales# prices# costs# in*entory le*els# recei*ables# payables# and so on. These are
the results of doing b!siness. arketing intelligence is a set of proced!res and
=:
so!rces managers !se to obtain e*eryday information abo!t de*elopments in the
marketing en*ironment Chappenings dataD.
'ages& (2A(9 Le*el of diffic!lty& +asy
12:. -ne of the %ays that a marketer can impro*e its marketing intelligence f!nction is
to net%ork e,ternally. "hat does net%orking e,ternally mean5 'ro*ide an
ill!stration to s!pport yo!r ans%er.
S"gge&ted An&(er: A company that seeks to net%ork e,ternally does so by Cif
applicableD p!rchasing competitor prod!cts# attending open ho!ses and trade
sho%s# reading competitors p!blished reports# attending stockholder meetings#
talking to employees# dealers# distrib!tors# s!ppliers# and freight agents# collecting
competitors ads# and looking !p ne%s stories abo!t competitors.
'age& (: Le*el of diffic!lty& edi!m
127. arketers today !se rele*ant online information to assess competitors prod!ct
strengths and %eaknesses. Additionally# s!mmary comments and o*erall
performance rating of prod!cts# ser*ices# and s!ppliers can be obtained. List the
fo!r main %ays marketers can get s!ch information online.
S"gge&ted An&(er: The fo!r %ays are C1D independent c!stomer goods and
ser*ice re*ie% forms# C)D distrib!tor or sales agent feedback sites# C2D combo<sites
offering c!stomer re*ie%s and e,pert opinions# and C9D c!stomer complaint sites.
'age& (( Le*el of diffic!lty& 1ard
12(. "hat is a trend and %hy is it important in marketing5
S"gge&ted An&(er: A trend is a direction or se3!ence of e*ents that has some
moment!m and d!rability. Trends are more predictable and d!rable than fads. A
trend re*eals the shape of the f!t!re and pro*ides many opport!nities.
'age& (( Le*el of diffic!lty& edi!m
12=. Ass!me that yo! are a marketing manager for a yo!th clothing man!fact!rer that
has j!st read abo!t the megatrend of the >rising 1ispanic infl!ence? in the United
States. +,plain this megatrend and indicate %hy it might be important to yo!r
company and ind!stry.
S"gge&ted An&(er: Already the largest minority gro!p in the United States# %ith
2: million people# the 1ispanic pop!lation is projected to increase by 2: percent
in this decade. Tho!gh 1ispanic ho!seholds represented only @ percent of U.S.
ho!seholds in )888# they acco!nted for )8 percent of the 9 million children born
in this co!ntry that year. St!dents sho!ld indicate ho% a yo!th<oriented clothier
might !se s!ch information.
'age& (= Le*el of diffic!lty& 1ard
=7
12@. $haracteri6e .eneration I or echo boomers. "hat implications does this
generation ha*e for marketing o*er the ne,t fe% years5
S"gge&ted An&(er: ;orn bet%een 1@(( and 1@@9# no% n!mbering () million#
this gro!p is almost e3!al in si6e to baby boomers. -ne disting!ishing
characteristic of this age gro!p is their !tter fl!ency and comfort %ith comp!ter
and /nternet technology. St!dents may spec!late on addition impacts.
198. The United States %as originally called a >melting pot#? b!t there are increasing
signs that the melting didnt occ!r. +,plain. "hat %o!ld be a >ne%? %ay of
describing o!r society and ho% it relates to members5
S"gge&ted An&(er: Ko% people call the United States a >salad bo%l? society#
%ith ethnic gro!ps maintaining their ethnic differences# neighborhoods# and
c!lt!res. This appears to be %hat the *ario!s ethnic gro!ps ha*e been doing for
sometime.
191. As a marketing manager yo! ha*e obser*ed that the >traditional ho!sehold? in the
United States is gi*ing %ay to the >nontraditional ho!sehold.? +,plain %hat this
means and characteri6e the >nontraditional ho!sehold.?
S"gge&ted An&(er: Today# one of eight ho!seholds is characteri6ed as being
nontraditional. +,amples of the nontraditional ho!sehold %o!ld be single li*e<
alones# ad!lt li*e<togethers of one or both se,es# single<parent families# childless
married co!ples# and empty<nesters.
19). "hat t%o factors ha*e helped those b!sinesses that cater to the gro%ing S-1-
Csmall officePhome officeD segment that is nearly 98 million strong5
S"gge&ted An&(er: The t%o factors are& C1D s!b!rban gro%th and C)D a disdain
for comm!ting.
'age& =: Le*el of diffic!lty& +asy
192. "hat impact are >liberali6ing children? ha*ing on /ndia5
S"gge&ted An&(er: Liberali6ing children ha*e a h!nger for achie*ement.
Liberali6ation children are 3!estioning conser*ati*e traditions s!ch as arranged
marriages and no p!blic kissing. They are becoming "esterni6ed.
=(
199. As indicated in the te,t# .A' p!rs!es a segmented market strategy %ith three tiers
of retail clothing stores. +,plain the .A' tier system and indicate e,amples of the
tiers.
S"gge&ted An&(er: .A' has the !pscale ;anana Lep!blic# the mid<market .A'#
and the b!dget<priced -ld Ka*y. This strategy has helped .A' to gro% from M(
billion in 1@@7 to M19 billion by )882.
19:. "ithin o!r social<c!lt!ral en*ironment# cons!mers often see themsel*es from
different *ie%s. Ass!me that yo! %ere espo!sing the view of themselves.
$haracteri6e this *ie%.
S"gge&ted An&(er: 'eople *ary in their relati*e emphasis placed on self<
gratification. /n the 78s and (8s there %ere many >pleas!re seekers.? -thers
so!ght self<reali6ation. Today# conser*atism is on the rise.
'ages& =(A== Le*el of diffic!lty& 1ard
197. Describe the differences bet%een a core belief and secondary belief. 'ro*ide an
e,ample to ill!strate yo!r description.
S"gge&ted An&(er: The people li*ing in a partic!lar society hold many core
beliefs and *al!es. These tend to persist o*er time. ost Americans belie*e in
%ork# getting married# in gi*ing to charity# and in being honest. Secondary beliefs
are more open to change s!ch as %hen is the right time to get married.
'age& == Le*el of diffic!lty& edi!m
19(. Ass!me that yo! %ere asked to %rite a brief paragraph indicating %hy a firm
might %ish to p!rs!e a policy of >green marketing.? 1o% %o!ld yo!r paragraph
read5
S"gge&ted An&(er: The >green marketing? mo*ement is associated %ith
>en*ironmentally friendly? prod!cts and marketing programs. These programs
%ere matched to cons!mers gro%ing interest in en*ironmental iss!es.
'age& @1 Le*el of diffic!lty& edi!m
19=. "hat fo!r trends in technology sho!ld marketers monitor5
S"gge&ted An&(er: The fo!r trends are& C1D the pace of change# C)D the
opport!nities for inno*ation# C2D *arying LOD b!dgets# and C9D increased
legislation.
'age& @) Le*el of diffic!lty& 1ard
==
19@. "ith respect to opport!nities for inno*ation# characteri6e the po%er of *irt!al
reality for the marketer.
S"gge&ted An&(er: Nirt!al reality is the combination of technologies that allo%s
!sers to e,perience three<dimensionally# comp!ter<generated en*ironments
thro!gh so!nd# sight# and to!ch. Nirt!al reality has impacted e*erything from o!r
homes to o!r a!tomobile designs.
'age& @2 Le*el of diffic!lty& +asy
1:8. $ons!mers are increasingly %illing to s%ap personal information for c!stomi6ed
prod!cts from firms. 1o%e*er# there are still cons!mer concerns. Io! kno% that
pri*acy iss!es are still a p!blic policy hot b!tton. As a cons!mer ad*ocate# list the
cons!mer concerns that seem to be the most compelling and most diffic!lt to deal
%ith by the marketer.
S"gge&ted An&(er: The cons!mers concerns are& C1D that they %ill be robbed or
cheated# C)D that pri*ate information %ill be !sed against them# C2D that someone
%ill steal their identity# C9D that they %ill be bombarded %ith solicitations# and C:D
that children %ill be targeted.
'age& @: Le*el of diffic!lty& edi!m
=@

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