Chapter 3 - Principles Of Marketing PDF

lOMoARcPSD|35410267 Chapter 3 - Principles of Marketing Principle of Marketing (MKR 211) (Học viện Nông nghiệp Việt Nam) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by Khánh...

lOMoARcPSD|35410267 Chapter 3 - Principles of Marketing Principle of Marketing (MKR 211) (Học viện Nông nghiệp Việt Nam) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 Principles of Marketing, 17e (Kotler/Armstrong) Chapter 3 Analyzing the Marketing Environment 1) Dan has been directed to study the forces close to a company that affect its ability to serve its customers, such as the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. In this instance, Dan has been directed to study the ________ of the company. A) macroenvironment B) microenvironment C) technological environment D) demographic environment E) political environment Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 2) Which of the following terms is used to describe the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers? A) marketing environment B) marketing orientation C) strategic planning D) target markets E) marketing mix Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 3) Which of the following is a component of a firm's microenvironment? A) customer demographics B) economic recessions C) population shifts D) marketing intermediaries E) technological changes Answer: D Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 1 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 4) Sam has been directed to study the demographic, economic, political, and cultural forces that affect an organization. In this instance, Sam has been directed to study the ________ of the organization. A) macroenvironment B) microenvironment C) internal environment D) marketing mix E) marketing intermediaries Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 5) The interrelated departments within a company that influence marketing decisions form the ________ environment. A) cultural B) economic C) company D) political E) technological Answer: C Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 6) Which is NOT part of the company environment that influences marketing decisions? A) accounting B) engineering C) manufacturing D) sales E) retailers Answer: E Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 2 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 7) ________ provide the resources needed by a company to produce its goods and services. A) Retailers B) Marketing services agencies C) Resellers D) Suppliers E) Financial intermediaries Answer: D Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 8) Sparex Inc. is a manufacturer of metal bolts that are used by Boilex Inc. to manufacture heavy machineries. In this instance, Sparex acts as a ________. A) financial intermediary B) supplier C) retailer D) customer E) local public Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 9) Jonathan works for a firm that assists companies in promoting, distributing, and selling their products to end consumers. The firm Jonathan works for is a ________. A) licensor B) supplier C) marketing intermediary D) local public E) general public Answer: C AACSB: Analytical thinking Skill: Application Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 3 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 10) ________ help companies stock and move goods from their points of origin to their destinations. A) Retailers B) Physical distribution firms C) Marketing services agencies D) Resellers E) Suppliers Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 11) ________ include banks, credit companies, insurance companies, and other businesses that help insure against the risks associated with the buying and selling of goods. A) Financial intermediaries B) Physical distribution firms C) Resellers D) Marketing services agencies E) Wholesalers Answer: A Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 12) Maria works for Sigma Inc., a firm that helps companies target and promote their products to the right markets. Sigma is most likely a ________. A) financial intermediary B) physical distribution firm C) marketing services agency D) reseller E) wholesaler Answer: C AACSB: Analytical thinking Skill: Application Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 4 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 13) LandPort Transportation and Omega Warehousing help companies move and stock goods from their manufacturing plants to their destinations. These two businesses are examples of ________. A) resellers B) marketing services agencies C) financial intermediaries D) physical distribution firms E) wholesalers Answer: D AACSB: Analytical thinking Skill: Application Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 14) Boxes, Inc. sells products to end users or to other companies that will sell to end users. Boxes, Inc. is a ________. A) reseller B) marketing services agencies C) financial intermediaries D) physical distribution firms E) wholesalers Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 15) Which of the following groups influences the company's ability to obtain funds? A) financial publics B) local publics C) general publics D) citizen-action publics E) internal publics Answer: A Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 5 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 16) Which of the following is true with regard to media publics? A) The primary function of this group is to protect the interests of minority groups. B) This group carries news, features, and editorial opinion. C) The primary function of this group is to critique the marketing decisions of companies. D) This group includes neighborhood residents and community organizations. E) This group directly influences the company's ability to obtain funds. Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 17) Companies can succeed against their competitors by all of the following EXCEPT ________. A) providing greater customer value and satisfaction B) better meeting the needs of target customers C) positioning their offerings strongly against competitors' offerings in the minds of consumers D) considering their own size and position compared to the competition E) providing the same product as the competition Answer: E AACSB: Analytical thinking Skill: Application Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 18) A company's marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others. These organizations and groups are also known as ________. A) media publics B) marketing intermediaries C) customers D) citizen-action publics E) internal publics Answer: D Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 6 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 19) A consumer organization in Ohio has challenged the marketing decision of a local firm alleging it to be against the larger social interest. In this instance, the firm is challenged by a(n) ________ public. A) internal B) general C) government D) citizen-action E) media Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 20) Which group includes neighborhood residents and community organizations? A) local publics B) government publics C) internal publics D) citizen-action publics E) media publics Answer: A Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 21) Cape Sky Inc., an international insurance and financial services company, is the primary sponsor of the annual New York City Marathon, which is attended by over one million fans and watched by approximately 300 million viewers worldwide. The Cape Sky logo and name are displayed throughout the racecourse. Cape Sky most likely sponsors this event in order to appeal to which of the following types of publics? A) financial publics B) citizen-action publics C) government publics D) general publics E) internal publics Answer: D AACSB: Analytical thinking Skill: Application Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Challenging 7 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 22) Workers, managers, and members of the board are examples of ________ publics. A) general B) internal C) local D) citizen-action E) media Answer: B Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 23) Price & Malone Corp., a company based in Houston, caters to a market of individuals and households that buy goods and services for personal consumption. Price & Malone caters to a ________ market. A) business B) reseller C) government D) consumer E) wholesale Answer: D AACSB: Analytical thinking Skill: Application Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 24) ________ markets buy goods and services for further processing. A) Business B) Reseller C) Wholesale D) Consumer E) Retail Answer: A Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 8 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 25) Government markets consist of government agencies that buy goods and services ________. A) to produce public services B) to resell at a profit C) for further processing D) for personal consumption E) that are generally of poor quality Answer: A AACSB: Application of knowledge; Analytical thinking Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 26) Rachel works for a furniture company in Ireland. She is responsible for buying and selling goods at a profit to small retailers. Rachel most likely operates in a ________ market. A) business B) reseller C) wholesale D) consumer E) retail Answer: B AACSB: Application of knowledge; Analytical thinking Skill: Application Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 27) Sparks Inc. has a growing ________ market in the United States consisting of individuals and households that buy Sparks' products for personal use. A) consumer B) government C) business D) international E) financial Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 9 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 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." 28) Which of the following microenvironment actors has had the most influence on The Landing? A) competitors B) suppliers C) marketing intermediaries D) resellers E) citizen-action publics Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 10 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 29) The microenvironment consists of larger societal forces that affect a company, such as demographic, economic, political, and cultural forces. Answer: FALSE Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 30) The macroenvironment consists of the factors close to the company that affect its ability to serve its customers, such as suppliers, customer markets, competitors, and publics. Answer: FALSE Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 31) Marketing success requires building relationships with other company departments, suppliers, marketing intermediaries, competitors, various publics, and customers, which combine to make up the company's value delivery network. Answer: TRUE Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 32) A company's marketing environment excludes the forces outside the marketing department that affect marketing management's ability to build and maintain successful relationships with target customers. Answer: FALSE Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 33) 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. Answer: TRUE Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 11 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 34) Local publics include consumer organizations, environmental groups, minority groups, and others. Answer: FALSE Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 35) The aim of the entire value delivery network is to serve target customers and create strong relationships with them. Answer: TRUE Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 36) Business markets buy goods and services for further processing or for use in their production processes. Answer: TRUE AACSB: Analytical thinking Skill: Application Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 37) Trudie Jones works for a distribution channel firm that helps several electronics companies find customers or make sales to them. Trudie works for a reseller. Answer: TRUE AACSB: Analytical thinking Skill: Application Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 38) A business's suppliers are the most important actors in the company's microenvironment. Answer: FALSE Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 12 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 39) Companies that watch variables such as income, cost of living, and interest rates, are more likely to be negatively affected by an economic change such as a recession or boom. Answer: FALSE Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 40) Government agencies such as the Food and Drug Administration and the Consumer Product Safety Commission investigate and ban potentially unsafe products. Regulations created by these and other agencies result in higher research costs and longer times between new product ideas and their introduction. Answer: TRUE Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 41) A trend has been people's growing mastery over nature through technology and the belief that nature is bountiful, but also the realization that it is finite and fragile. Answer: TRUE Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 42) Marketing management can control environmental forces. A reactive approach is, therefore, the most beneficial approach to the marketing environment. Answer: FALSE Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 43) How have large retailers such as Walmart changed the dynamics of partnering with resellers? Answer: Selecting and partnering with resellers is not easy. No longer do manufacturers have many small, independent resellers from which to choose. They now face large and growing reseller organizations, such as Walmart, Target, Home Depot, Costco, and Best Buy. These organizations frequently have enough power to dictate terms or even shut smaller manufacturers out of large markets. AACSB: Application of knowledge Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Easy 13 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 44) Who are the major players in a company's microenvironment? Explain the role that each actor plays. Answer: Marketing success requires building relationships with other company departments, suppliers, marketing intermediaries, competitors, various publics, and customers, which combine to make up the company's value delivery network. The company: In designing marketing plans, marketing management takes other company groups into account—groups such as top management, finance, research and development (R&D), purchasing, operations, and accounting. All of these interrelated groups form the internal environment. Top management sets the company's mission, objectives, broad strategies, and policies. Marketing managers make decisions within the broader strategies and plans made by top management. Suppliers: Suppliers form an important link in the company's overall customer value delivery network. They provide the resources needed by the company to produce its goods and services. Marketing intermediaries: 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. Competitors: The marketing concept states that, to be successful, a company must provide greater customer value and satisfaction than its competitors do. Thus, marketers must do more than simply adapt to the needs of target consumers. Publics: The company's marketing environment also includes various publics. A public is any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives. Customers: Customers are the most important actors in the company's microenvironment. The aim of the entire value delivery network is to serve target customers and create strong relationships with them. AACSB: Written and oral communication Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 14 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 45) What are marketing intermediaries and what are the various types? Answer: 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 who buy and resell merchandise. Physical distribution firms help the company to 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 help finance transactions or insure against the risks associated with the buying and selling of goods. AACSB: Written and oral communication Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 46) What is a "public" in terms of the marketing environment? In a short essay, briefly describe the different types of publics that marketers must consider and explain how marketing might communicate with these publics. Answer: A public is any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives. There are seven types of publics. Financial publics: This group influences the company's ability to obtain funds. Media publics: This group carries news, features, and editorial opinions. 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 neighborhood 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. Internal publics: This group includes workers, managers, volunteers, and the board of directors. Large companies use newsletters and other means to inform and motivate their internal publics. A company can prepare marketing plans for these major publics as well as for its customer markets. AACSB: Written and oral communication Skill: Concept Objective: LO 3.1: Describe the environmental forces that affect the company's ability to serve its customers. Difficulty: Moderate 15 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 47) The marketing team of 7 Star Inc., a company manufacturing smartphones, is currently studying the size, density, location, age, and occupation of its target market. Which of the following environments is being studied in this scenario? A) demographic environment B) political environment C) economic environment D) technological environment E) cultural environment Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 48) The single most important demographic trend in the United States is the ________. A) changing age structure of the population B) mobility of families C) changing family structure of the population D) increasing number of professional jobs E) increasing birth rate Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Easy 49) Among the generational groups in U.S population, the ________ are still the wealthiest generation in U.S. history. A) baby boomers B) Generation Xers C) Millennials D) echo boomers E) Silent Generation Answer: A AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Easy 16 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 50) Which of the following is true of the baby boomers? A) They tend to see themselves as far older than they actually are. B) They represent a rapidly shrinking market for new housing and home remodeling. C) They are long past their peak earning and spending years. D) They control an estimated 70 percent of the United States' disposable income. E) They have utter fluency and comfort with digital technology. Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 51) Which of the following is true of Gen Xers? A) They are considerably larger than the boomer generation. B) They were the first to grow up in the Internet era. C) They are less educated than the baby boomers. D) They are more materialistic than the Millennials. E) They rarely research a product before purchasing it. Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 52) Which of the following generations is the most educated to date? A) Lost Generation B) Baby boomers C) Millennials D) Generation X E) Silent Generation Answer: D AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Easy 17 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 53) Mary Adams is helping her company develop a marketing program for a new product line. The program is designed to appeal most to less materialistic consumer groups who are likely to prize experience, not acquisition. The marketing program is most likely designed to appeal to which of the following demographic groups? A) Generation X B) Millennials C) Echo Boomers D) Silent Generation E) Lost Generation Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Challenging 54) Which of the following is true of the Millennials? A) They are the children of baby boomers and were born between 1977 and 2000. B) They control an estimated 70 percent of the disposable income in the United States. C) They have reached their peak earning and spending years. D) They were the first to grow up in the Internet era. E) They are less immersed in technology than Gen Xers. Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 55) Which of the following generational groups is most comfortable with digital technology and embraces that technology? A) Generation X B) Millennials C) Baby Boomers D) Silent Generation E) Lost Generation Answer: B AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 18 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 56) Wholesome Soups, a maker of organic soups, is starting a new marketing campaign emphasizing the ease of preparing and eating Wholesome Soups. Print, television, and Internet ads feature college students enjoying Wholesome Soups in between classes and during study breaks. Wholesome Soups' new marketing campaign is most likely aimed at which of the following? A) Baby Boomers B) Gen Zers C) Gen Xers D) Millennials E) the SOHO market Answer: D AACSB: Analytical thinking Skill: Application Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Challenging 57) Marketers target Generation Z because they ________. A) listen to their parents and follow their examples B) dislike technology C) spend an estimated $44 billion annually of their own money D) prefer shopping in brick-and-mortar stores with actual products E) have long attention spans and are easily targeted Answer: C AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Challenging 58) Gen Zers are highly mobile, connected, and social. They base their purchases on ________. A) input from their friends B) text messages C) social media ratings D) product research on their own E) their parents' opinions Answer: D AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 19 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 59) Marketers can group people in a number of ways, including by birth date. However, the following combination of groups has proven to be more effective: ________. A) income, lifestyle, life stage B) profession, common values they seek in products they buy, lifestyle C) lifestyle, life stage, common values they seek in products they buy D) place of residence, life stage, lifestyle E) race or nationality, lifestyle, common values they seek in products they buy Answer: C AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Challenging 60) Which of the following is a trend that depicts the increasingly nontraditional nature of today's American families? A) the low percentage of working women in the workforce B) the low percentage of married couples with children C) the sharply declining number of dual-income families D) the sharply declining number of stay-at-home dads E) the decreasing reliance on convenience foods and services Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 61) In the context of geographical shifts in population, the migration toward ________ areas has resulted in a rapid increase in the number of people who telecommute. A) urban B) remote C) rural D) metropolitan E) micropolitan Answer: E Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 20 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 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 Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Easy 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 Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Easy 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 Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Easy 21 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 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 AACSB: Information technology Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 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 AACSB: Analytical thinking Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Challenging 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 AACSB: Analytical thinking Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Challenging 22 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 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 Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Easy 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 Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Easy 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 AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 23 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 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 AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Easy 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 AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Challenging 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 AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 24 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 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 AACSB: Analytical thinking Skill: Application Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Challenging 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 AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 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 Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Easy 25 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 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 AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Challenging 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 AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 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 AACSB: Analytical thinking Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 26 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 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 AACSB: Analytical thinking Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Challenging 27 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 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 AACSB: Analytical thinking Skill: Application Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 28 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 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 AACSB: Analytical thinking Skill: Application Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 83) The demographic environment is of major interest to marketers because it involves people, and people make up markets. Answer: TRUE Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 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 AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 85) As baby boomers reach their peak earning and spending years, they become lucrative markets for financial services, travel, and entertainment. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Easy 29 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 86) Millennials comprise the most financially affluent group in America today. Answer: FALSE AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 87) The Gen Xers are increasingly displacing the lifestyles, culture, and values of the baby boomers. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 88) Millennials represent a larger demographic segment than the baby boomers or Gen Xers. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 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 AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 90) The American workforce today is less white-collar than in the late twentieth century. Answer: FALSE AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 30 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 91) Companies in several industries have recognized the buying power of the LGBT segment of the U.S. population and have begun explicitly targeting these consumers with gay-specific ads and marketing efforts. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Easy 92) Prior to the Great Recession of 2008/2009, American consumer spending was careful and restrained. Answer: FALSE Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Easy 93) What are two potential drawbacks of creating separate products and marketing programs for each generation? Answer: Some experts warn that marketers need to be careful about turning off one generation each time they craft a product or message that appeals effectively to another. Others caution that each generation spans decades of time and many socioeconomic levels. AACSB: Application of knowledge; Written and oral communication Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 94) Briefly explain why, until 2008, Americans amassed record amounts of debt and why the free-spending trend has ended. Answer: Americans spent freely, fueled by income growth, a boom in the stock market and rapid increases in home values. Americans bought and bought, seemingly without caution, amassing record levels of debt. However, the free spending and high expectations of those days were dashed by the Great Recession of 2008/2009. AACSB: Analytical thinking Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 31 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 95) Why do marketers find baby boomers attractive? Answer: Today's baby boomers account for about 26 percent of the U.S. population but control an estimated 70 percent of the nation's disposable income. AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 96) How can marketers reach the Millennials effectively? Answer: Millenials engage with brands in an entirely new way, such as with mobile or social media. More than sales pitches from marketers, Millennials seek opportunities to shape their own brand experiences and share them with others. Many brands are now fielding specific products and marketing campaigns aimed at Millennial needs and lifestyles. AACSB: Information technology; Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Easy 97) How can marketers reach the Generation Zers effectively? Answer: The social media will play a crucial marketing role as the kids and tweens grow into teens. Today's kids are notoriously hard to pin down. The key is to engage these young consumers and let them help to define their brand experiences. Says one expert, "They love sensory overload—bright colors, music videos, a variety of merchandise, the tumult of all that." AACSB: Information technology Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 98) What structure can an American family have now, as the traditional family has changed? Answer: The traditional household consists of a husband, wife, and children (and sometimes grandparents). Yet couples without children, single parents, and nonfamily households are groups growing more quickly than traditional households. AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Easy 32 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 99) Why do population shifts interest marketers? Answer: Population shifts interest marketers because people in different regions buy differently. For example, in the United States, people in the Midwest buy more winter clothing than people in the Southeast. AACSB: Application of knowledge Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 100) In terms of ethnic and racial makeup, why is the United States today more accurately characterized as a "salad bowl" than a "melting pot"? Answer: The United States has often been called a melting pot, where diverse groups from many nations and cultures have melted into a single, more homogeneous whole. Instead, the United States seems to have become more of a "salad bowl" in which various groups have mixed together but have maintained their diversity by retaining and valuing important ethnic and cultural differences. AACSB: Analytical thinking; Diverse and multicultural work environments Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 33 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 101) What is demography? Why is the demographic environment of major interest to marketers? Discuss the changing age structure of the U.S. population. Answer: Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics. The demographic environment is of major interest to marketers because it involves people, and people make up markets. Marketers can learn much about human populations in terms of changing age and family structures, geographic population shifts, educational characteristics, population diversity, and other statistics. Based on age structure, the U.S. population can be categorized into several generational groups; the three largest among them are the baby boomers, Generation X, and the Millennials. The baby boomer market of 78 million people is one of the most powerful forces shaping the marketing environment. Considerably smaller than the boomer generation that precedes them and the Millennials who follow, the Generation Xers are a sometimes overlooked consumer group. Although they seek success, they are less materialistic than the other groups; they prize experience, not acquisition. For many of the Gen Xers who are parents, family comes first—both children and their aging parents—and career second. From a marketing standpoint, the Gen Xers are a more skeptical bunch. They tend to research products before they consider a purchase, prefer quality to quantity, and tend to be less receptive to overt marketing pitches. They are more likely to be receptive to irreverent ad pitches that make fun of convention and tradition. The Millennials (or Generation Y) are the 83 million children of the baby boomers born between 1977 and 2000. One thing that all Millennials have in common is their comfort with digital technology. They don't just embrace technology; it's a way of life. Rather than having mass-marketing messages pushed at them, the Millennials prefer to seek out information and engage in two-way brand conversations. Generation Zers make up important kids, tweens, and teens markets that influence almost $200 billion of their own and parents' spending. They are utterly fluent with technology and take it for granted. They are highly mobile, connected, and social. They blend the online and offline worlds seamlessly as they socialize and shop. AACSB: Application of knowledge; Written and oral communication Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 34 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 102) Explain the impact of the baby boomers, Generation Xers, Millennials, and Generation Zers on today's marketing strategies. Answer: Today's baby boomers account for about 26 percent of the U.S. population but control an estimated 70 percent of the nation's disposable income. This group is an attractive market for financial services, new housing and home remodeling, travel and entertainment, and health and fitness products, among others. Generation Xers carry a more cautious outlook; they are less materialistic than baby boomers, so marketers must use a different approach to appeal to them. Millennials are children of the baby boomers. One thing that all Millennials have in common is their comfort with digital technology. They don't just embrace technology; it's a way of life. The Millennials were the first generation to grow up in a world filled with computers, mobile phones, satellite TV, iPods and iPads, and online social networks. As a result, they engage with brands in an entirely new way, such as with mobile or social media. Rather than having mass- marketing messages pushed at them, the Millennials prefer to seek out information and engage in two-way brand conversations. Thus, reaching them effectively requires creative marketing approaches. Generation Zers are born after 2000 and make up important kids, tweens, and teens markets that influence almost $600 billion of their own and parents' spending. They are utterly fluent with technology and take it for granted. They are highly mobile, connected, and social. They blend the online and offline worlds seamlessly as they socialize and shop. Marketers need to form more precise age-specific segments within each group. More important, defining people by their birth date may be less effective than segmenting them by their lifestyle, life stage, or the common values they seek in the products they buy. AACSB: Application of knowledge; Written and oral communication Skill: Concept Objective: LO 3.2: Explain how changes in the demographic and economic environments affect marketing decisions. Difficulty: Moderate 103) The physical environment affecting marketing activities is referred to as the ________ environment. A) economic B) natural C) cultural D) political E) social Answer: B Skill: Concept Objective: LO 3.3: Identify the major trends in the firm's natural and technological environments. Difficulty: Easy 35 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 104) The environmental sustainability movement encourages companies to ________. A) actively resist social change B) operate freely in the black market C) go beyond government regulations D) institute deregulation E) curb organizational anarchy Answer: C AACSB: Ethical understanding and reasoning Skill: Concept Objective: LO 3.3: Identify the major trends in the firm's natural and technological environments. Difficulty: Moderate 105) As a consequence of the concern for the natural environment, many companies are developing strategies and practices that support ________. A) government intervention B) environmental sustainability C) deregulation D) mass marketing E) rapid exploitation of natural resources Answer: B AACSB: Ethical understanding and reasoning Skill: Concept Objective: LO 3.3: Identify the major trends in the firm's natural and technological environments. Difficulty: Challenging 106) A firm dumping chemical wastes in the local lake is ________. A) actively resisting social change B) contributing to organizational anarchy C) engaging in a "do well by doing good" mission D) adopting a proactive stance toward the marketing environment E) contributing to increased pollution Answer: E AACSB: Ethical understanding and reasoning Skill: Application Objective: LO 3.3: Identify the major trends in the firm's natural and technological environments. Difficulty: Moderate 36 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 107) New technologies most likely lead to ________. A) economic imbalance in society B) reduced exports C) trade deficits D) an increased demand for unskilled labor E) new markets and opportunities Answer: E AACSB: Information technology Skill: Concept Objective: LO 3.3: Identify the major trends in the firm's natural and technological environments. Difficulty: Easy 108) Many firms today use RFID technology to ________. A) identify new target markets B) analyze threats and opportunities in the macroenvironment C) move toward environmental sustainability D) track products through various points in the distribution channel E) track patterns of online consumer behavior Answer: D AACSB: Information technology Skill: Concept Objective: LO 3.3: Identify the major trends in the firm's natural and technological environments. Difficulty: Moderate 109) Many companies use RFID product labels on their goods, which exemplifies the ________ environment in business. A) natural B) political C) economic D) demographic E) technological Answer: E AACSB: Information technology Skill: Concept Objective: LO 3.3: Identify the major trends in the firm's natural and technological environments. Difficulty: Easy 37 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 110) Which of the following is most likely a result of regulations set up by the Food and Drug Administration and the Consumer Product Safety Commission? A) The time between new product ideas and their introduction to the market has decreased. B) Annual spending on research and development has decreased. C) Research costs for companies have risen. D) Product innovation has significantly declined. E) Marketers have grown increasingly apathetic toward meeting safety standards. Answer: C Skill: Concept Objective: LO 3.3: Identify the major trends in the firm's natural and technological environments. Difficulty: Moderate 111) Trends in the natural environment include all of the following EXCEPT ________. A) increased government intervention B) the development of an environmental sustainability movement C) increased pollution D) decreased costs of product development E) shortages of raw materials Answer: D AACSB: Analytical thinking Skill: Application Objective: LO 3.3: Identify the major trends in the firm's natural and technological environments. Difficulty: Moderate 112) Which of the following is a true statement about the benefits of RFID technology? A) It allows firms to track products and customers at various points in the distribution channel. B) The chips are used to track shipments but not individual items. C) The chips do not risk invading people's privacy. D) Sharing of data decreases the buying experience for consumers. E) The technology will be available for the foreseeable future, allowing companies to fully invest in its capabilities. Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 3.3: Identify the major trends in the firm's natural and technological environments. Difficulty: Challenging 38 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 113) Regulations force companies to be responsible. However, most companies want to be responsible. Impacts of government regulations include all of the following EXCEPT ________. A) informing the public that products are safe B) higher research costs C) increased sales because they have been found to be safe D) penalties to companies that fail to meet the regulations E) longer times between new product ideas and their introduction Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 3.3: Identify the major trends in the firm's natural and technological environments. Difficulty: Moderate 39 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 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." 114) Which of the following is the macroenvironmental force that benefitted The Landing the most? A) the legal environment B) the natural environment C) the economic environment D) the political environment E) the technological environment Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 3.3: Identify the major trends in the firm's natural and technological environments. Difficulty: Moderate 40 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 115) Environmental sustainability concerns have declined steadily over the past three decades. Answer: FALSE AACSB: Ethical understanding and reasoning Skill: Concept Objective: LO 3.3: Identify the major trends in the firm's natural and technological environments. Difficulty: Moderate 116) The technological environment is predominantly static. Answer: FALSE AACSB: Analytical thinking Skill: Concept Objective: LO 3.3: Identify the major trends in the firm's natural and technological environments. Difficulty: Easy 117) The introduction of new technologies is equally beneficial to all industries. Answer: FALSE AACSB: Information technology Skill: Concept Objective: LO 3.3: Identify the major trends in the firm's natural and technological environments. Difficulty: Moderate 118) How can marketers benefit from developing solutions to environmental problems, such as pollution and raw material shortages? Answer: Marketers who help develop solutions to problems facing the natural environment can gain the advantage of becoming market leaders, as increasingly strict environmental regulations can be expected in the United States and elsewhere. Environmentally responsible actions will help a company's public image; the actions will also help in creating a more sustainable market. AACSB: Application of knowledge; Ethical understanding and reasoning Skill: Concept Objective: LO 3.3: Identify the major trends in the firm's natural and technological environments. Difficulty: Challenging 41 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 119) What are the major trends in today's natural environment? How do these trends affect companies? Answer: The natural environment shows three major trends: shortages of certain raw materials, higher pollution levels, and more government intervention in natural resource management. Environmental concerns create marketing opportunities for alert companies. As concern about global warming and other environmental issues continues to grow, more and more consumers are demanding environmentally responsible products. Companies who pay heed to these demands will benefit, as environmentally responsible actions are linked with good business. AACSB: Application of knowledge; Written and oral communication Skill: Concept Objective: LO 3.3: Identify the major trends in the firm's natural and technological environments. Difficulty: Moderate 120) Why is the technological environment such a dramatic force in today's market? Answer: The technological environment is perhaps the most dramatic force now shaping our destiny. Technology has released such wonders as antibiotics, robotic surgery, miniaturized electronics, smartphones, and the Internet. It also has released such horrors as nuclear missiles, chemical weapons, and assault rifles. It has released such mixed blessings as the automobile, television, and credit cards. Our attitude toward technology depends on whether we are more impressed with its wonders or its blunders. New technologies create new markets and opportunities. However, every new technology replaces an older technology. Transistors hurt the vacuum-tube industry, digital photography hurt the film business, and MP3 players and digital downloads are hurting the CD business. When old industries fought or ignored new technologies, their businesses declined. Thus, marketers should watch the technological environment closely. Companies that do not keep up will soon find their products outdated. If that happens, they will miss new product and market opportunities. AACSB: Information technology; Written and oral communications Skill: Concept Objective: LO 3.3: Identify the major trends in the firm's natural and technological environments. Difficulty: Moderate 121) The ________ prohibits monopolies and activities (price-fixing, predatory pricing) that restrain trade or competition in interstate commerce. A) Sherman Antitrust Act B) Lanham Trademark Act C) Fair Packaging and Labeling Act D) CAN-SPAM Act E) Magnuson-Moss Warranty Act Answer: A Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Moderate 42 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 122) The ________ limits the number of commercials aired during children's programs. A) Children's Online Privacy Protection Act B) Child Protection Act C) Fair Packaging and Labeling Act D) Children's Television Act E) Consumer Product Safety Act Answer: D Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Moderate 123) The ________ environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. A) socio-legal B) cultural C) political D) technological E) economic Answer: C Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Easy 124) Governments develop public policy to ________. A) encourage deregulation B) identify demographic patterns C) identify cultural patterns D) guide commerce E) protect marketers Answer: D Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Easy 125) Laws in the United States and many other countries have many business-oriented laws covering issues such as competition, environmental protection, pricing, packaging and labeling, product safety, truth in advertising, consumer privacy, and ________. A) land ownership B) taxation C) fair-trade practices D) education E) interdepartmental communication Answer: C Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Easy 43 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 126) Business legislation is enacted to protect ________. A) consumers from unfair business practices B) businesses from unfair attacks by consumers C) consumers from competition by businesses D) businesses from achieving unfairly high profits E) society from profitable business activity Answer: A Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Moderate 127) Laws are passed to define and prevent unfair competition primarily because ________. A) business executives tend to favor pure monopolies B) businesses sometimes try to neutralize threatening firms C) governments in free market economies tend to nationalize ailing firms D) private lobbying hurts the interests of national and state governments E) most multinational entities in advanced economies are averse to invest in emerging markets Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Moderate 128) Funco Inc., a toy manufacturer, sold plastic racing cars that were manufactured with toxic materials, which threatened the health of several children. Which purpose of government regulation to protect consumers is involved? A) misleading customers in their advertising B) deceiving consumers through their packaging C) making shoddy products D) deceiving consumers through their pricing E) invading consumer privacy Answer: C AACSB: Analytical thinking Skill: Application Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Moderate 44 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 129) A company or association's ________ is designed to help guide responses to complex social responsibility issues. A) code of ethics B) marketing plan C) non-disclosure policy D) privacy policy E) non-compete clause Answer: A AACSB: Ethical understanding and reasoning Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Easy 130) The boom in Internet marketing has created a new set of social and ethical issues. Critics worry most about ________. A) accessibility B) puffery in advertising C) online privacy issues D) sustainability E) issues pertaining to efficiency Answer: C AACSB: Information technology Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Easy 131) Cause-related marketing has become a primary form of ________. A) quality control B) corporate fraud protection C) corporate giving D) legislative lobbying E) price discrimination Answer: C AACSB: Ethical understanding and reasoning Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Easy 45 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 132) A regional supermarket chain runs print, radio, and television advertisements announcing that 1 percent of its sales is donated to local after-school programs for underprivileged youth. This is an example of ________. A) cause-related marketing B) generational marketing C) sustainable marketing D) market segmentation E) product differentiation Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Challenging 133) The ________ environment consists of institutions and other forces that affect a society's basic values, perceptions, preferences, and behaviors. A) social B) cultural C) political D) physical E) natural Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Easy 134) Marketers should understand that people's core beliefs and values tend to be ________. A) fixed B) highly flexible C) similar around the world D) constantly and rapidly changing E) easily influenced by secondary beliefs Answer: A AACSB: Reflective thinking Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Moderate 46 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 135) Babita Singh, a 51-year-old schoolteacher from Los Angeles, believes that people should choose a profession they like, which is an example of Babita's ________. A) secondary belief B) core belief C) core value D) work ethic E) moral code Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Challenging 136) A pastor from Kansas believes that adultery is immoral. This refers to the pastor's ________. A) secondary belief B) acquired belief C) social identity D) core belief E) cultural orientation Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Moderate 137) Mercury Inc., an American multinational corporation, is currently planning to enter the promising consumer goods market in India. The firm will most likely discover that ________ beliefs and values are more open to change in India. A) inherited B) secondary C) primary D) core E) traditional Answer: B AACSB: Analytical thinking; Diverse and multicultural work environments Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Moderate 47 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 138) A society's ________ are expressed in how people view themselves and others, organizations, society, nature, and the universe. A) social codes B) cultural values C) demographics D) public policies E) norms Answer: B AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Easy 139) Which of the following is most likely true with regard to people's views of organizations in contemporary America? A) In the American workplace, there has been an overall increase in organizational loyalty. B) Most Americans are confident in their employers and are unlikely to switch jobs as frequently as in the past. C) The past two decades have seen a sharp decrease in confidence in and loyalty toward America's business organizations. D) Most U.S. workers view work as a source of personal satisfaction and organizational pride. E) In the last decade, corporate scandals and layoffs had little impact on people's confidence in U.S. firms. Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Moderate 140) People vary in their attitudes toward their society—while ________ defend it, malcontents want to leave it. A) reformers B) patriots C) activists D) environmentalists E) historical revisionists Answer: B Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Easy 48 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 141) Which of the following is a potential downside to using patriotic themes in marketing programs? A) Consumers rarely respond to patriotic marketing messages in a favorable manner. B) A consumer's societal orientation has no visible impact on product consumption. C) Patriotism could be viewed as an attempt to cash in on the nation's emotions. D) Patriotic Americans may have less disposable income than reformers. E) Mass marketing has limited appeal among patriotic Millennials. Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Moderate 142) Consumers in the "lifestyles of health and sustainability" market are more likely to seek ________. A) alternative medicine B) perfumes made from animal products C) clothing made of fur D) leather goods E) foods high in saturated fat Answer: A AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Moderate 143) The fact that people are dropping out of organized religion doesn't mean that they are abandoning their faith. Some futurists have noted a renewed interest in ________, perhaps as a part of a broader search for a new inner purpose. A) interacting with nature B) the fine arts C) charitable giving D) spirituality E) materialism Answer: D AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Easy 49 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 144) Josie's FarmFresh creates sustainable, all-natural food products. These products are most likely to become popular with which group? A) SOHO B) environmentally conscious C) LGBT D) business E) Millennials' Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Moderate 145) The popularity of cause-related marketing as a form of corporate giving is rapidly declining. Answer: FALSE AACSB: Ethical understanding and reasoning Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Moderate 146) Secondary beliefs and values are less open to change than core beliefs and values. Answer: FALSE Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Easy 147) Explain the controversy surrounding cause-related marketing. Answer: Critics worry that cause-related marketing is more a strategy for selling than a strategy for giving—that "cause-related" marketing is really "cause-exploitative" marketing. Companies may walk a fine line between increased sales and an improved image yet face charges of exploitation, even though business and charity don't have to be mutually exclusive. AACSB: Ethical understanding and reasoning Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Moderate 50 Copyright © 2018 Pearson Education, Inc. Downloaded by Khánh Nguy?n Vân Ng?c ([email protected])  lOMoARcPSD|35410267 148) Why is government regulation necessary to protect consumers from unfair business practices? Answer: Government regulation is necessary to protect consumers from unfair business practices because some firms, if left alone, would make shoddy products, invade consumer privacy, mislead consumers in their advertising, and deceive consumers through their packaging and pricing. Rules defining and regulating unfair business practices are enforced by various agencies. AACSB: Analytical thinking Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Moderate 149) How do socially responsible firms positively impact consumers and the environment? Answer: Enlightened companies encourage their managers to look beyond what the regulatory system allows and simply "do the right thing." These socially responsible firms actively seek out ways to protect the long-run interests of their consumers and the environment. AACSB: Ethical understanding and reasoning Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Moderate 150) What is the difference between core beliefs and secondary beliefs? Give an example of each. Answer: Core beliefs and values are passed on from parents to children and are reinforced by schools, churches, business, and government. On the other hand, secondary beliefs and values are more open to change. For example, believing in marriage is a core belief; believing that people should get married early in life is a secondary belief. AACSB: Ethical understanding and reasoning Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Easy 151) What are the different ways in which the major cultural values of a society are expressed? Answer: The major cultural values of a society are expressed in people's views of themselves and others, as well as in their views of organizations, society, nature, and the universe. AACSB: Diverse and multicultural work environments Skill: Concept Objective: LO 3.4: Explain the key changes in the political and cultural environments. Difficulty: Easy 51 Copyright © 2018 Pearson Education, Inc. Downloaded by Khá