Chap 03 Test Bank

12) Companies have responded to consumers' back - to - basics sensibility in their lifestyle and spending patterns through ________. A) quality marketing B) prestige - oriented marketing C) frugal marketing D) diverse marketing E) value marketing 12) 13) Which of the following is most likely true about people's beliefs and values? A) Secondary beliefs are passed on from parents to children. B) Marketers have a high chance of changing core beliefs and values. C) Secondary beliefs and values cannot be changed. D) Core beliefs and values have a high degree of persistence. E) Belief in marriage is a secondary belief for most Canadians. 13) 14) The Smith Company buys electronic products from manufacturers for wholesale and sells them to various retail outlets. To which of the following markets does The Smith Company directly cater? A) supplier markets B) consumer markets C) business markets D) reseller markets E) manufacturer markets 14) 15) Which of the following is a geographic shift that has been observed in Canada in recent times? A) Between 2015 and 2017 Alberta experienced a positive interprovincial migration flow. B) Central and western Canada experienced growth far short of the national average. C) The largest growth as a percentage of population came from some of Canada's largest provinces. D) More Canadians are moving to micropolitan or suburban areas where they can telecommute. E) As of July 2018, 5 in 10 Canadians, lived in one of Canada's 36 CMAs. 15) 16) Recyclable or biodegradable packaging, recycled materials and components, and better pollution controls are ways that marketers have responded to the ________. A) increased need to comply with environmental regulations B) pollution reduction movement C) new recycling laws D) environmental sustainability E) new government intervention program 16) 17) Technology is a way of life for ________, the largest generational group. A) baby boomers B) Millennials C) Generation Z D) Generation X E) Lost Generation 17) 3 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

30) Which of the following is most likely a true statement about diversity in Canada? A) Most ethnic groups are shedding their ethnic culture and shifting toward a unified Canadian culture. B) Ethnic and cultural differences exist since different ethnic groups remain isolated from one another. C) The nation's ethnic populations are expected to decrease in coming decades. D) Various ethnic groups mix together but also retain their cultural differences. E) The share of Canadians with French or British Isles origins continue to increase as a share of the total Canadian population. 30) 31) The approximately 8.6 million Canadian ________ make up the important kids, tweens, and teens markets. A) Generation Xers B) Millennials C) baby boomers D) Generation Zers E) Latinos 31) 32) Which of the following is an example of a local public? A) a federal regulatory agency that monitors business practices B) a bank that helps a company acquire loans C) a community organization that addresses welfare issues in its neighbourhood D) a supplier responsible for sourcing most of the raw materials used in production E) a company director who is working to improve the organization's public image 32) 33) The migration trend towards micropolitan and suburban areas has caused a shift in where people work. This has resulted in a rapid increase in the number of people who ________. A) work part - time B) telecommute C) commute D) purchase second residences E) leave the workforce 33) 34) Which generational group is characterized as the most educated and the least materialistic? A) Generation X B) Lost Generation C) baby boomer D) Generation Z E) Millennial 34) 35) Which of the following is most likely categorized as a business market? A) retail outlets that buy goods and services to sell at discounted prices B) firms that buy goods and services for further processing C) firms that buy goods and services to resell for profit D) government agencies that buy goods and services to produce public services E) individuals who buy goods and services for personal consumption 35) 6 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

48) In a marketer's macroenvironment, the ________ environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. A) political B) natural C) cultural D) technological E) internal 48) 49) Secure is a financial services and insurance company. The company's most profitable division is one that sells the Secure Future Plan. The Secure Future Plan targets customers who are entering retirement and want long - term savings so they can remain financially independent in the later years of their life. The marketing team at Secure has most likely targeted the plan to ________. A) Generation Zers B) Millennials C) baby boomers D) Generation Xers E) Lost Generation 49) 50) Demographic, economic, natural, technological, political, and cultural forces form the ________ of an organization. A) macroenvironment B) marketing intermediary network C) supply chain D) internal environment E) microenvironment 50) 51) Which of the following represents a change in the technological environment of a marketing firm? A) increased need to engage in mass marketing over market segmentation B) increased use of value marketing techniques and promotions C) increased need to comply with environmental regulations D) increased use of RFID systems to track products E) increased use of cause - related marketing 51) 52) Which of the following illustrates the changing composition of the Canadian family? A) The number of married couples with children under 18 is climbing. B) There is a growing 'crowded nest' syndrome with about 35% of young Canadians aged 20 - 34 living with at least one parent. C) There are fewer dual - income families as fewer women enter the workforce. D) The number of same - sex couples raising children has decreased. E) A decrease in the number of same - sex couples. 52) 53) A marketing intermediary would most likely help a firm by ________. A) moving the firm's goods from production points to distribution centres B) supplying the raw materials needed for manufacturing the firm's products C) competing directly with the firm in a certain product category D) negotiating with labour unions regarding wages, hours, and benefits E) providing technical expertise on the production and design of goods 53) 9 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

75) As the economy has improved, consumers are again indulging in luxuries and bigger - ticket purchases. 75) 76) Marketing intermediaries form an important component of a company's overall value delivery network. 76) 77) Walmart's microenvironment includes suppliers. 77) 78) Cause - related marketing techniques are typically unprofitable for businesses, which is why it is a rarely used form of corporate giving. 78) 79) Resellers are distribution channel firms that help the company find customers or make sales to them. 79) 80) Stringent product regulations have helped to lower research costs and decrease time between new product ideas and their introduction to the market. 80) 81) A customer buys a can of Pepsi from a Walmart store. In this scenario, Walmart is a supplier in Pepsi's value delivery network. 81) 82) The Consumer Product Safety Commission has created complex regulations for testing new drugs before they are sold to the public. 82) 83) The purchasing power of a population is part of the demographic environment of a company's macroenvironment. 83) 84) People's orientation to their society does not impact their consumption patterns and attitudes toward the marketplace. 84) 85) In the context of income distribution, the middle class in the United States has grown in size over the past several decades. 85) ESSAY. Write your answer in the space provided or on a separate sheet of paper. 86) Markwin Electronics is a company that only sells products online. Orders are taken through an interactive website, and goods are shipped out through a small warehouse the company owns. Markwin employees also handle the shipment of goods to desired destinations. How could marketing intermediaries help Markwin expand its business? 87) Discuss how an increased educational level in Canada has affected the Canadian household and how marketers have responded to these changes. 88) How do companies use marketing techniques to respond to the changing diversity in the North American population? Provide examples to illustrate your response. 89) Discuss how the political environment affects the marketing environment. 90) Describe the major trends in the natural environment that marketers need to be aware of. 12 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

Answer Key Testname: CHAP 03_7CE 50) A 51) D 52) B 53) A 54) E 55) D 56) A 57) E 58) E 59) D 60) B 61) TRUE 62) FALSE 63) FALSE 64) TRUE 65) TRUE 66) TRUE 67) TRUE 68) TRUE 69) FALSE 70) TRUE 71) TRUE 72) TRUE 73) TRUE 74) TRUE 75) TRUE 76) TRUE 77) TRUE 78) FALSE 79) TRUE 80) FALSE 81) FALSE 82) FALSE 83) TRUE 84) FALSE 85) FALSE 86) Students' answers may vary. The answer given below is indicative.) Marketing intermediaries help the company promote, sell, and distribute its products to final buyers. Marketing intermediaries already have channels ready that are directly connected to customers. Thus, by utilizing intermediaries, Markwin can tap into a much bigger source of sales. Intermediaries include resellers, physical distribution firms, marketing services agencies, and financial intermediaries. These include wholesalers and retailers who buy and resell merchandise. Physical distribution firms can help Markwin stock and move goods from their points of origin to their destinations. Marketing services agencies are the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right markets. Financial intermediaries include banks, credit companies, insurance companies, and other businesses that can help finance transactions for Markwin or insure against the risks associated with the buying and selling of goods. Marketing intermediaries can form an important component of the company's overall value delivery network. Markwin's marketers must recognize the importance of working with their intermediaries as partners rather than simply as channels through which they sell their products. 15 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

Answer Key Testname: CHAP 03_7CE 94) Marketing intermediaries help the company promote, sell, and distribute its products to final buyers. They include resellers, physical distribution firms, marketing services agencies, and financial intermediaries. Resellers are distribution channel firms that help the company find customers or make sales to them. These include wholesalers and retailers that buy and resell merchandise. Physical distribution firms help the company stock and move goods from their points of origin to their destinations. Marketing services agencies are the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the firm target and promote its products to the right markets. Financial intermediaries include 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. Marketing intermediaries form an important component of the company's overall value delivery network. In its quest to create satisfying customer relationships, the company must do more than just optimize its own performance. It must partner effectively with marketing intermediaries to optimize the performance of the entire system. 95) (Students' answers may vary. The answer given below is indicative.) People vary in their attitudes toward the natural world. Recently, however, people have recognized that nature is finite and fragile; it can be destroyed or spoiled by human activities. This renewed love of things natural has created a 41 - million - person "lifestyles of health and sustainability" (LOHAS) market, consumers who seek out everything from natural, organic, and nutritional products to fuel - efficient cars and alternative medicine. For example, Tom's of Maine caters to such consumers with sustainable, all - natural personal care products–toothpaste, deodorant, mouthwash, and soap–made with no artificial colours, flavours, fragrances, or preservatives. The products are also "cruelty - free" (no animal testing or animal ingredients). Tom's makes sustainable practices a priority in every aspect of its business and strives to maximize the recycled content and recyclability of its packaging. Finally, Tom's donates 10 percent of its pre - tax profits to charitable organizations. 96) A public is any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives. Financial publics: This group influences the company's ability to obtain funds. Banks, investment analysts, and stockholders are the major financial publics. Media publics: This group carries news, features, editorial opinions, and other content. It includes newspapers, magazines, television stations, and blogs and other social media. Government publics: Management must take government developments into account. Marketers must often consult the company's lawyers on issues of product safety, truth in advertising, and other matters. Citizen - action publics: A company's marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others. Its public relations department can help it stay in touch with consumer and citizen groups. Local publics: This group includes neighbourhood residents and community organizations. Large companies usually create departments and programs that deal with local community issues and provide community support. General public: A company needs to be concerned about the general public's attitude toward its products and activities. The public's image of the company affects its buying behaviour. Internal publics: This group includes workers, managers, volunteers, and the board of directors. 97) Many companies view the marketing environment as an uncontrollable element to which they must react and adapt. They passively accept the marketing environment and do not try to change it. They analyze environmental forces and design strategies that will help the company avoid the threats and take advantage of the opportunities the environment provides. This is a reactive approach. Other companies take a proactive stance toward the marketing environment. Instead of letting the environment define their strategy, they craft a strategy that defines the environment. Rather than assuming that strategic options are bounded by the current environment, these firms develop strategies to change the environment. Proactive firms take aggressive actions to affect the publics and forces in their marketing environment. Such companies hire lobbyists to influence legislation affecting their industries and stage media events to gain favourable press coverage. They run advertorials (ads expressing editorial points of view) and blogs to shape public opinion. They press lawsuits and file complaints with regulators to keep competitors in line, and they form contractual agreements to better control their distribution channels. 18 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562