Part 2: Capturing Marketing Insights

Chapter 3:
Gathering Information and Scanning the Environment
GENERAL CONCEPT QESTIONS
!"#tip#e Choice
1. The major responsibility for identifying significant marketplace changes falls to the
.
a. !.". #epartment of $abor
b. company%s marketers
c. &merican Marketing &ssociation
d. industry lobby groups found in 'ashington( #.C.
e. marketing research industry
&ns)er: b Page: *2 $e+el of difficulty: ,asy
2. Marketers ha+e e-tensi+e information about ho) consumption patterns +ary across
countries. .n a per capita basis )ithin 'estern ,urope( the smoke the most
cigarettes.
a. ")iss
b. /reeks
c. Irish
d. &ustrians
e. 0rench
&ns)er: d Page: *2 $e+el of difficulty: 1ard
2. &ll of the follo)ing 3uestions ,4C,PT ( )ould be considered to be forms
of information needs probes.
a. 'hat decisions do you regularly make5
b. 'hat information do you need to make decisions5
c. 'hat data analysis programs )ould you )ant5
d. 'hat maga6ines and trade reports )ould you like to see on a regular basis5
e. 'hat products )ould be most closely matched to consumer needs5
&ns)er: e Page: *2 $e+el of difficulty: Medium
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Part 2: Capturing Marketing Insights
9. consists of people( e3uipment( and procedures to gather( sort( analy6e(
e+aluate( and distribute needed( timely( and accurate information to marketing
decision makers.
a. & marketing information system
b. & marketing research system
c. & marketing intelligence system
d. & promotional campaign
e. & marketing database
&ns)er: a Page: *2 $e+el of difficulty: Medium
:. The company%s marketing information system should be a cross bet)een )hat
managers think they need( )hat managers really need( and .
a. )hat the marketing research department is able to do
b. )hat consumers are )illing to share
c. )hat the competition is doing
d. )hat is acceptable industry practice
e. )hat is economically feasible
&ns)er: e Page: *2 $e+el of difficulty: Medium
7. Marketing managers rely on internal reports. ;y analy6ing this information( they can
spot .
a. micro<markets
b. opportunities and problems
c. macro<markets
d. competiti+e strategies
e. consumer demographic units
&ns)er: b Page: *2 $e+el of difficulty: ,asy
*. The heart of the internal records system is the .
a. database
b. asset ac3uisition process
c. order<to<payment cycle
d. ser+ice consideration
e. information li3uidity ratio
&ns)er: c Page: *2 $e+el of difficulty: 1ard
=. 'hen a marketer >mines? his or her company%s database( fresh insights can be gained
into neglected customer segments( ( and other useful information.
a. recent customer trends
b. long<term competiti+e trends
c. possible ne) in+entions
d. possible ne) technologies
e. ne) primary data possibilities
&ns)er: a Page: *9 $e+el of difficulty: Medium
71
Chapter 2: /athering Information and "canning the ,n+ironment
@. The internal records system supplies results data( but the marketing intelligence
system supplies data.
a. concurrent
b. secondary
c. research
d. happenings
e. premium
&ns)er: d Page: *9 $e+el of difficulty: Medium
18. & is a set of procedures and sources managers use to obtain e+eryday
information about de+elopments in the marketing en+ironment.
a. marketing research system
b. marketing information system
c. product management system
d. marketing intelligence system
e. +ertical system
&ns)er: d Page: *9 $e+el of difficulty: Medium
11. & company can take se+eral steps to impro+e the 3uality of its marketing intelligence.
If the company purchases competiti+e products for study( attends open houses and
trade sho)s( and reads competitors% published reports and stockholder information(
the company is using to impro+e the 3uality of its marketing intelligence.
a. sales force surrogates
b. intermediaries
c. e-ternal net)orks
d. ad+isory panels
e. customer feedback systems
&ns)er: c Pages: *9A*: $e+el of difficulty: 1ard
12. &ll of the follo)ing )ould be considered to be steps to impro+e the 3uality of
marketing intelligence in a company ,4C,PT .
a. a company can train and moti+ate the sales force to spot and report ne)
de+elopments
b. a company can use guerrilla tactics such as going through a competitor%s trash
c. a company can moti+ate intermediaries to pass along important information
d. a company can net)ork e-ternally
e. a company can purchase information from outside suppliers
&ns)er: b Pages: *9A*7 $e+el of difficulty: ,asy
72
Part 2: Capturing Marketing Insights
12. The 2888 !.". census pro+ides an in<depth look at the population s)ings(
demographic groups( regional migrations( and changing family structure of 2=1B
million people. 'hich of the follo)ing steps to impro+e the 3uality of company
marketing intelligence system )ould be most closely associated the abo+e
illustration5
a. & company can purchase information from outside suppliers.
b. & company can take ad+antage of go+ernment data sources.
c. & company can use online customer feedback systems to collect data.
d. & company can net)ork e-ternally.
e. & company can use its sales force to collect and report data.
&ns)er: b Page: *7 $e+el of difficulty: ,asy
19. There are four main )ays that marketers can find rele+ant online information on
competitors% products and )eaknesses( and summary comments and o+erall
performance rating of a product( ser+ice( or supplier. isCareD a type of site
that is concentrated in financial ser+ices and high<tech products that re3uire
professional kno)ledge.
a. Independent customer goods and ser+ice re+ie)s
b. #istributor or sales agent feedback sites
c. Combo<sites offering customer re+ie)s and e-pert opinions
d. Customer complaint sites
e. "hopping bot ser+ice sites
&ns)er: c Page: ** $e+el of difficulty: 1ard
1:. & is >unpredictable( short<li+ed( and )ithout social( economic( and political
significance.?
a. fad
b. fashion
c. trend
d. megatrend
e. style
&ns)er: a Page: ** $e+el of difficulty: Medium
17. & is a direction or se3uence of e+ents that has some momentum and
durabilityE the shape of the future is re+ealed and many opportunities are pro+ided.
a. fad
b. fashion
c. trend
d. megatrend
e. style
&ns)er: c Page: ** $e+el of difficulty: 1ard
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Chapter 2: /athering Information and "canning the ,n+ironment
1*. ha+e been described as >large social( economic( political and technological
changes FthatG are slo) to form( and once in place( they influence us for some timeH
bet)een se+en and ten years( or longer.
a. 0ads
b. 0ashions
c. Trends
d. Megatrends
e. "tyles
&ns)er: d Page: ** $e+el of difficulty: Medium
1=. 'hich of the follo)ing minority groups in the !nited "tates has been associated )ith
one of the ten megatrends shaping the consumer landscape5
a. &frican &mericans
b. &sian &mericans
c. ,uropean &mericans
d. 1ispanic &mericans
e. Middle ,astern &mericans
&ns)er: d Page: *= $e+el of difficulty: Medium
1@. The beginning of the ne) century brought a series of ne) challenges. &ll of the
follo)ing )ould be considered to be among those challenges ,4C,PT .
a. a deterioration of inno+ati+e ideas
b. steep decline of the stock market
c. increasing unemployment
d. corporate scandals
e. the rise of terrorism
&ns)er: a Page: *= $e+el of difficulty: Medium
28. 'ith the rapidly changing global picture( the firm must monitor si- major forces. &ll
of the follo)ing )ould be among those forces ,4C,PT .
a. demographic
b. economic
c. social<cultural
d. natural
e. promotional
&ns)er: e Page: *= $e+el of difficulty: ,asy
21. The main demographic force that marketers monitor isCareD .
a. suppliers
b. competitors
c. communication Csuch as ad+ertisingD
d. go+ernment reports dealing )ith birth rates
e. population
&ns)er: e Page: *@ $e+el of difficulty: ,asy
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Part 2: Capturing Marketing Insights
22. The population e-plosion has been a source of major concern. !nchecked population
gro)th and consumption could e+entually result in all of the follo)ing ,4C,PT
.
a. insufficient food supply
b. depletion of key minerals
c. o+ercro)ding
d. restrictions on competition
e. pollution
&ns)er: d Page: *@ $e+el of difficulty: ,asy
22. .ne impact of e-plosi+e population gro)th is illustrated by the case of China. The
Chinese go+ernment passed regulations limiting families to one child. .ne
conse3uence of these regulations is that .
a. the children are so fussed o+er and spoiled that they become >little emperors?
b. school enrollments are dropping
c. the fledgling automoti+e business in China )ill not ha+e customers in a fe) years
d. open rebellion is being preached
e. >child<oriented businesses? ha+e fe) customers
&ns)er: a Page: =8 $e+el of difficulty: Medium
29. & significant fact about population gro)th and population shifts is that in 2889 or
288:( .
a. the youth market )ill e-ceed that of the adult market
b. people o+er the age of 78 )ill outnumber those under fi+e years of age
c. baby boomers )ill be eclipsed by /en 4 young adults
d. most age group segments )ill be about e3ual
e. /en I young adults )ill surpass the baby boomers as the largest age segment
&ns)er: b Page: =8 $e+el of difficulty: 1ard
2:. 'hich of the follo)ing age groups is thought to control three<3uarters of the
country%s )ealth5
a. 8A28 age segment
b. 78B age segment
c. 28A28 age segment
d. 28A98 age segment
e. 98B age segment
&ns)er: e Page: =1 $e+el of difficulty: 1ard
7:
Chapter 2: /athering Information and "canning the ,n+ironment
27. &t one time the !nited "tates )as called a >melting pot? society because of the
number of different cultures that )ere integrated into the !.". culture. Today( the
!nited "tates is described as a society because many ethnic groups are
maintaining their ethnic differences( neighborhoods( and cultures.
a. >boiling pot?
b. >salad bo)l?
c. >banana split?
d. >doubled up?
e. >non<communicati+e?
&ns)er: b Page: =1 $e+el of difficulty: Medium
2*. &ccording to the 2888 census( the !.". population of 2*7.2 million )as *2 percent
)hite and percent &frican &merican. The remainder consisted of 1ispanic
&mericans and other minorities.
a. 28
b. 1=
c. 1:
d. 12
e. 11
&ns)er: d Page: =1 $e+el of difficulty: 1ard
2=. #i+ersity goes beyond ethnic and racial markets. More than million
&mericans ha+e disabilities( and they constitute a market for home deli+ery
companies Cand othersD.
a. :8
b. 98
c. 28
d. 28
e. 18
&ns)er: a Page: =2 $e+el of difficulty: 1ard
2@. 'hich of the follo)ing countries is kno)n for ha+ing @@ percent of its population
literate5
a. ,ngland
b. /ermany
c. 0rance
d. !nited "tates
e. Japan
&ns)er: e Page: =2 $e+el of difficulty: Medium
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Part 2: Capturing Marketing Insights
28. The household consists of a husband( )ife( and children Cand sometimes
grandparentsD.
a. >traditional?
b. >e-tended?
c. >di+ersity?
d. >modern?
e. >re+ised?
&ns)er: a Page: =2 $e+el of difficulty: Medium
21. Married couple householdsHthe dominant cohort since the formulation of the !nited
"tatesHhas slipped from nearly =8 percent in the 1@:8s to around percent
today.
a. *8
b. 78
c. :8
d. 98
e. 2:
&ns)er: c Page: =2 $e+el of difficulty: 1ard
22. The t)enty<first century sa) markets gro) more rapidly again due to a
higher birth rate( a lo)er death rate( and rapid gro)th from foreign immigration.
a. suburban
b. urban
c. rural
d. coastal
e. secondary
&ns)er: b Page: =9 $e+el of difficulty: Medium
22. The mo+ement by population to the has lessened the demand for )arm
clothing and home heating e3uipment and increased demand for air conditioning.
a. /rainbelt
b. Pacific Korth)est
c. "unbelt
d. Mid<Coastal areas
e. 1eartland
&ns)er: c Page: =9 $e+el of difficulty: ,asy
7*
Chapter 2: /athering Information and "canning the ,n+ironment
29. Marketers look at )here consumers are gathering. &lmost one in people
o+er the age of fi+e C128 millionD mo+ed at least one time bet)een 1@@: and 2888(
according to a Census 2888 brief.
a. t)o
b. three
c. four
d. fi+e
e. ten
&ns)er: a Page: =: $e+el of difficulty: 1ard

2:. In )hich of the follo)ing economies )ould )e e-pect to find fe) opportunities for
marketers5
a. Industriali6ing economies.
b. $and<locked economies.
c. La)<material<e-porting economies.
d. Industrial economies.
e. "ubsistence economies.
&ns)er: e Page: =7 $e+el of difficulty: ,asy
27. &ccording to information presented in the te-t( )hich of the follo)ing countries is
surprisingly a +ery good market for $amborghini automobiles Ccosting more than
M1:8(888D because of the number of )ealthy families that can afford e-pensi+e cars.
a. /reece
b. ")it6erland
c. 1olland
d. Lussia
e. Portugal
&ns)er: e Page: =7 $e+el of difficulty: 1ard
2*. .+er the past three decades in the !nited "tates( the rich ha+e gro)n richer and the
middle class has .
a. stayed about the same
b. shrunk
c. increased slightly
d. matched the rich in terms of relati+e gro)th
e. been ignored because of problems )ith the poorer classes
&ns)er: b Page: =7 $e+el of difficulty: Medium
2=. shapes the beliefs( +alues( and norms that largely define the tastes and
preferences.
a. Marketing
b. The mass media
c. /o+ernment
d. Production inno+ation and engineering
e. "ociety
&ns)er: e Page: =* $e+el of difficulty: Medium
7=
Part 2: Capturing Marketing Insights
2@. If a consumer li+es the lifestyle of a >pleasure seeker? or goes on a >self<reali6ation?
3uest( he or she is e-pressing )hat is called .
a. +ie)s of others
b. +ie)s of society
c. +ie)s of themsel+es
d. +ie)s of organi6ations
e. +ie)s of the uni+erse
&ns)er: c Pages: =*A== $e+el of difficulty: ,asy
98. &ccording to the information found in the social<cultural en+ironment( )ith respect to
views of others, are considered to be things that allo) people )ho are alone
to feel they are not Ce.g.( tele+ision( home +ideo games( and chat rooms on the
InternetD.
a. social surrogates
b. subliminal fantasies
c. relationship a+oidance
d. primary products
e. secondary products
&ns)er: a Page: == $e+el of difficulty: Medium
91. Today( corporations need to make sure that they are good corporate citi6ens and that
their consumer messages are honest. "uch a +ie) )ould be consistent )ith )hich of
the follo)ing +ie)s5
a. Nie)s of others.
b. Nie)s of organi6ations.
c. Nie)s of themsel+es.
d. Nie)s of the uni+erse.
e. Nie)s of society.
&ns)er: b Page: == $e+el of difficulty: ,asy
92. People +ary in their attitudes to)ard their society. usually li+e more
frugally( dri+e smaller cars( and )ear simpler clothing.
a. Makers
b. ,scapers
c. "eekers
d. Changers
e. #e+elopers
&ns)er: d Page: == $e+el of difficulty: 1ard
7@
Chapter 2: /athering Information and "canning the ,n+ironment
92. People +ary in their attitudes to)ard society and react accordingly. are a
major market for mo+ies( music( surfing( and camping.
a. Makers
b. Preser+ers
c. ,scapers
d. Changers
e. #e+elopers
&ns)er: c Page: == $e+el of difficulty: ,asy
99. &ll of the follo)ing ha+e been cited by the te-t as being among &mericans% core
+alues ,4C,PT .
a. they belie+e in )ork
b. they belie+e in getting married
c. they belie+e in gi+ing to charity
d. they belie+e in being honest
e. they belie+e in se-ual permissi+eness
&ns)er: e Page: == $e+el of difficulty: ,asy
9:. 'hich of the follo)ing )ould be the best illustration of a secondary belief or +alue5
a. ;elief in )ork.
b. ;elief in gi+ing to charity.
c. ;elief in getting married.
d. ;elief in getting married early.
e. ;elief in being honest.
&ns)er: d Page: == $e+el of difficulty: Medium
97. 'hich of the follo)ing is by far the most popular &merican leisure acti+ity in that it
is preferred by :@ percent of adults )ho participate in such acti+ities5
a. /ardening.
b. 'alking for e-ercise.
c. ")imming.
d. Photography.
e. Jogging or running.
&ns)er: b Page: =@ $e+el of difficulty: Medium
9*. ,ach society contains ( groups )ith shared +alues emerging from their
special life e-periences or circumstances.
a. demographic segments
b. cli3ues
c. consumer bundles
d. subcultures
e. beha+ioral niches
&ns)er: d Page: =@ $e+el of difficulty: Medium
*8
Part 2: Capturing Marketing Insights
9=. 'hich of the follo)ing )ould be the best illustration of a subculture5
a. & softball team.
b. & uni+ersity alumni association.
c. Teenagers.
d. & ;oy "cout troop.
e. 0re3uent flyers.
&ns)er: c Page: =@ $e+el of difficulty: Medium
9@. &ll of the follo)ing ,4C,PT ha+e been found to influence young people
today and cause a shift of secondary cores +alues for this group.
a. !2%s ;ono.
b. ,l+is Presley.
c. The K;&%s $e;ron James.
d. /olf%s Tiger 'oods.
e. "kateboarder Tony 1a)k.
&ns)er: b Page: =@ $e+el of difficulty: ,asy
:8. &lthough core +alues are fairly persistent( cultural s)ings do take place.
caused such a s)ing in the 1@78s.
a. 0ord Motor Company
b. /eorge Mc/o+ern
c. /.I. Joe action characters
d. The infomercial
e. The ;eatles
&ns)er: e Page: =@ $e+el of difficulty: Medium
:1. Marketers need to be a)are of threats and opportunities associated )ith four trends in
the natural en+ironment. &ll of the follo)ing are among those trends ,4C,PT
.
a. the shortage of ra) materials
b. the increased cost of energy
c. near @8 percent corporate support for >green causes?
d. increased pollution le+els
e. the changing role of go+ernments
&ns)er: c Page: @8 $e+el of difficulty: ,asy
:2. 'ith respect to the shortage of ra) materials( air and )ater are classified as
resources. 1o)e+er( as )e kno)( problems are beginning to plague both our air and
)ater 3uality.
a. infinite
b. near finite
c. finite rene)able
d. finite nonrene)able
e. absolute
&ns)er: a Page: @8 $e+el of difficulty: Medium
*1
Chapter 2: /athering Information and "canning the ,n+ironment
:2. .ne finite nonrene)able resource( ( has created serious problems for the
)orld economy. ;ecause of anticipated shortages( in+estment and commodity
markets ha+e had )ild s)ings.
a. )ater
b. air
c. sugar
d. coffee
e. oil
&ns)er: e Page: @8 $e+el of difficulty: ,asy
:9. 0rom a branding perspecti+e( >green marketing? programs ha+e not been entirely
successful. has been cited as one of the obstacles that must be o+ercome
for >green marketing? programs to be more successful.
a. .+ere-posure and lack of credibility
b. 1igh cost
c. Poor promotions
d. Lesistance by the youth segment in the marketplace
e. $ack of support by go+ernmental agencies and concerns
&ns)er: a Page: @1 $e+el of difficulty: 1ard
::. 'hich of the follo)ing countries is noted for their >green mo+ement? and support
)ithin its go+ernment for en+ironmental 3uality enhancement5
a. Me-ico
b. China
c. /ermany
d. ,ngland
e. Italy
&ns)er: c Page: @1 $e+el of difficulty: Medium
:7. The marketer should monitor the follo)ing trends in technology( ,4C,PT (
if progress is to be made in business.
a. the pace of change
b. the difficulties found in sharing information
c. the opportunities for inno+ation
d. +arying LO# budgets
e. increased regulation
&ns)er: b Page: @2 $e+el of difficulty: 1ard
:*. &ccording to some industry analysts and in+entors( )ill e+entually eclipse
the PC as our most important technological de+ice.
a. iPod
b. 1#TN
c. holographic tele+ision
d. the mobile phone
e. solar<po)ered car
&ns)er: d Page: @2 $e+el of difficulty: Medium
*2
Part 2: Capturing Marketing Insights
:=. &ll of the follo)ing )ill most likely be among the ad+antages for a society that
embraces telecommuting as an employmentPcommunication alternati+e ,4C,PT
.
a. reduction of auto pollution
b. bringing the family closer together
c. increased bonuses and compensation perks
d. creating more home<centered shopping
e. entertainment centered on the home en+ironment
&ns)er: c Page: @2 $e+el of difficulty: Medium
:@. legislation has as its purposes to protect companies from unfair
competition( to protect consumers from unfair business practices( and to protect the
interests of society from unbridled business beha+ior.
a. ;usiness
b. Consumer
c. ;i<partisan
d. &cti+ist
e. /lobal
&ns)er: a Page: @9 $e+el of difficulty: ,asy
78. &n important force affecting business is the Ha mo+ement of citi6ens and
go+ernment organi6ed to strengthen the rights and po)ers of buyers in relation to
sellers.
a. lobbyist mo+ement
b. consumerist mo+ement
c. en+ironmental mo+ement
d. self<rights mo+ement
e. ethical reform mo+ement
&ns)er: b Page: @: $e+el of difficulty: Medium

Tr"e$%a#&e
71. The major responsibility for identifying significant marketplace changes falls to the
company%s marketers.
&ns)er: True Page: *2 $e+el of difficulty: ,asy
72. Today( most firms are rather sophisticated about gathering information.
&ns)er: 0alse Page: *2 $e+el of difficulty: Medium
72. & marketing information system is de+eloped from internal company records(
marketing intelligence( and promotional models supplied by the marketing
department.
&ns)er: 0alse Page: *2 $e+el of difficulty: Medium
*2
Chapter 2: /athering Information and "canning the ,n+ironment
79. The heart of the internal records system is the bar code.
&ns)er: 0alse Page: *2 $e+el of difficulty: Medium
7:. &ccording to principles found in database construction and usage( a >carpet bombing?
mail out of a ne) offer is usually the most successful strategy.
&ns)er: 0alse Page: *9 $e+el of difficulty: Medium
77. The internal records system supplies results data( but the marketing intelligence
system supplies happenings data.
&ns)er: True Page: *9 $e+el of difficulty: ,asy
7*. If a company )ere pursuing a policy of net)orking e-ternally it might collect
competitors% ads or look up ne)s stories about competitors.
&ns)er: True Page: *: $e+el of difficulty: Medium
7=. .ne of the )ays to find rele+ant online information on competitors% strengths and
)eaknesses might be to fre3uent distributor or sales agent feedback sites.
&ns)er: True Page: *7 $e+el of difficulty: Medium
7@. & style is unpredictable( short<li+ed( and )ithout social( economic( and political
significance.
&ns)er: 0alse Page: ** $e+el of difficulty: Medium
*8. & megatrend has been described as being )hat follo)s all fads that stay on the
market at least one year.
&ns)er: 0alse Page: ** $e+el of difficulty: Medium
*1. .ne of the ten significant megatrends that )ill impact marketing efforts in the future
is delayed retirement.
&ns)er: True Page: *= $e+el of difficulty: Medium
*2. Microen+ironmental forces ha+e been labeled as being >uncontrollable.?
&ns)er: 0alse Page: *= $e+el of difficulty: Medium
*2. The main demographic force that marketers monitor is population.
&ns)er: True Page: *@ $e+el of difficulty: Medium
*9. If the )orld )ere a +illage of 1(888 people( it )ould consist of :28 men and 9=8
)omen.
&ns)er: 0alse Page: *@ $e+el of difficulty: Medium
*:. & gro)ing population al)ays means a gro)ing market.
&ns)er: 0alse Page: =8 $e+el of difficulty: Medium
*7. Japan has one of the )orld%s oldest populations.
&ns)er: True Page: =8 $e+el of difficulty: Medium
*9
Part 2: Capturing Marketing Insights
**. &ccording to population studies( /en 4 Cnumbering *2 millionD is almost the same
si6e as the huge baby boomer market.
&ns)er: 0alse Page: =1 $e+el of difficulty: Medium
*=. &t present the largest minority in the !nited "tates is the $atinos )ith 12 percent of
the total population.
&ns)er: 0alse Page: =1 $e+el of difficulty: Medium
*@. In the !nited "tates( 18 to 1: percent of the population may be functionally illiterate.
&ns)er: True Page: =2 $e+el of difficulty: Medium
=8. ;ased on research done in ,ngland( a conclusion dra)n about families is that >friends
are the ne) family.?
&ns)er: True Page: =2 $e+el of difficulty: 1ard
=1. &ccording to studies of minority markets( the disabled market is ten times more likely
to be in a professional job( almost t)ice as likely to o)n a +acation home( eight times
more likely to o)n a notebook computer( and t)ice as likely to o)n indi+idual stocks
as compared to the general population.
&ns)er: 0alse Page: =9 $e+el of difficulty: Medium
=2. !rban markets are once again gro)ing because of higher birth rates( a lo)er death
rate( and rapid gro)th from foreign immigration.
&ns)er: True Page: =9 $e+el of difficulty: Medium
=2. The small officeHhome office segment of our society has gro)n to nearly 98 millionE
thereby( boosting the sales of electronic con+eniences and ready to assemble
furniture.
&ns)er: True Page: =: $e+el of difficulty: Medium
=9. &lmost one in t)o people o+er the age of fi+e C128 millionD mo+ed at least one time
bet)een 1@@: and 2888( according to a Census 2888 brief.
&ns)er: True Page: =: $e+el of difficulty: Medium
=:. &+ailable purchasing po)er in an economy depends on mainly one facetHsupply and
demand.
&ns)er: 0alse Page: =: $e+el of difficulty: ,asy
=7. & good illustration of a ra)<material e-porting economy is ,gypt.
&ns)er: 0alse Page: =7 $e+el of difficulty: 1ard
=*. Con+entional retailers )ho offer medium<priced goods are the most +ulnerable to the
gro)ing trend in the !nited "tates called a t)o<tier market.
&ns)er: True Page: =7 $e+el of difficulty: 1ard
*:
Chapter 2: /athering Information and "canning the ,n+ironment
==. Through outsourcing( companies can feasibly cut bet)een 28 to *8 percent of their
labor costs.
&ns)er: True Page: =* $e+el of difficulty: ,asy
=@. >Pleasure seekers? of the 1@*8s had their beliefs( +alues( and norms shaped by views
of others.
&ns)er: 0alse Pages: =*A== $e+el of difficulty: Medium
@8. If a single person has a home entertainment system that is rich in tele+ision
capabilities and home +ideo games( he or she may be using such a system as a >social
surrogate.?
&ns)er: True Page: == $e+el of difficulty: Medium
@1. In recent years( because of a tough job market( there has been an increasing amount
of organi6ational loyalty among most employees.
&ns)er: 0alse Page: == $e+el of difficulty: Medium
@2. If a young college student decides to join the military to defend the principles of his
or her country( the student )ould be classified as a >changer.?
&ns)er: 0alse Page: == $e+el of difficulty: Medium
@2. Most &mericans still belie+e in getting married as a core belief.
&ns)er: True Page: == $e+el of difficulty: ,asy
@9. Teenagers )ould be a good e-ample of a culture in the !nited "tates.
&ns)er: 0alse Page: =@ $e+el of difficulty: Medium
@:. Marketers need to be a)are of the threats and opportunities associated )ith the trend
to)ard increased pollution le+els.
&ns)er: True Page: @8 $e+el of difficulty: Medium
@7. Lesearch studies ha+e sho)n that consumers as a )hole may not be )illing to pay a
premium for en+ironmental benefits.
&ns)er: True Page: @1 $e+el of difficulty: ,asy
@*. ,+ery ne) technology is a force for >creati+e destruction.?
&ns)er: True Page: @2 $e+el of difficulty: ,asy
@=. Nirtual reality is gi+ing consumers )hat they dream about.
&ns)er: 0alse Page: @2 $e+el of difficulty: Medium
@@. .ne of the major trends in the political<legal en+ironment is the trend to)ard the
gro)th of special interest groups.
&ns)er: True Page: @2 $e+el of difficulty: ,asy
*7
Part 2: Capturing Marketing Insights
188. Today( customers are still )illing to s)ap personal information for customi6ed
products from firms.
&ns)er: True Page: @: $e+el of difficulty: ,asy
E&&a'
181. #escribe a marketing information system CMI"D. 0rom )hat sources is the MI"
de+eloped5
S"gge&ted An&(er: & marketing information system (MIS) consists of people(
e3uipment( and procedures to gather( sort( analy6e( e+aluate( and distribute
needed( timely( and accurate information to marketing decision makers. &
marketing information system is de+eloped from internal company records(
marketing intelligence acti+ities( and marketing research.
Page: *2 $e+el of difficulty: Medium
182. #escribe the order<to<payment cycle and )hy it is important to internal records
information keeping.
S"gge&ted An&(er: The heart of the internal records system is the order<to<
payments cycle. "ales representati+es( dealers( and customers send orders to the
firm. The sales department prepares in+oices and transmits copies to +arious
departments. .ut<of<stock items are back ordered. "hipped items are
accompanied by shipping and billing documents that are sent to +arious
departments. Today%s companies must perform these steps 3uickly and accurately.
Page: *2 $e+el of difficulty: Medium
182. 'hat are the +arious steps to impro+e the 3uality of its marketing intelligence
function that can be taken by a company5
S"gge&ted An&(er: The steps are: C1D a company can train and moti+ate the sales
force to spot and report ne) de+elopmentsE C2D a company can moti+ate
distributors( retailers( and other intermediaries to pass along important
intelligenceE C2D a company can net)ork e-ternallyE C9D a company can set up a
customer ad+isory panelE C:D a company can take ad+antage of go+ernment data
resourcesE C7D a company can purchase information from outside suppliers( and
C*D a company can use online customer feedback systems to collect competiti+e
intelligence.
Pages: *9A*7 $e+el of difficulty: 1ard
**
Chapter 2: /athering Information and "canning the ,n+ironment
189. $ist and briefly describe the four main )ays marketers can find rele+ant online
information on competitors% strengths and )eaknesses( and summary comments
and o+erall performance rating of a product( ser+ice( or supplier.
S"gge&ted An&(er: The four )ays are: C1D independent customer goods and
ser+ice re+ie) forumsE C2D distributor or sales agent feedback sitesE C2D combo<
sites offering customer re+ie) and e-pert opinionsE and C9D customer complaint
sites.
Page: ** $e+el of difficulty: 1ard

18:. 'hat is a >megatrend?5 ;riefly describe fi+e megatrends shaping the consumer
landscape.
S"gge&ted An&(er: & megatrend is a large( social( economic( political( and
technological change that is slo) to form( and once in place( influences us for
some time Ce.g.( bet)een se+en and ten years or longerD. The ten trends Cstudents
discuss fi+eD discussed in the te-t are C1D aging boomersE C2D delayed retirementE
C2D the changing nature of )orkE C9D greater educational attainmentHespecially
among )omenE C:D labor shortagesE C7D increased immigrationE C*D rising 1ispanic
influenceE C=D shifting birth trendsE C@D )idening geographic differencesE and C18D
the changing age structure.
Pages: **A*= $e+el of difficulty: 1ard
187. 'hat is the main demographic force monitored by marketers5 'hy5
S"gge&ted An&(er: The main demographic force monitored by marketers is
population. The reason for its importance is because people make up markets.
Marketers are keenly interested in the si6e and gro)th rate of population in cities(
regions( and nationsE age distribution and ethnic mi-E educational le+elsE
household patternsE and regional characteristics and mo+ements.
Page: *@ $e+el of difficulty: Medium
18*. #escribe the t)o dominant >household patterns? in the last :8 years.
S"gge&ted An&(er: The dominant patterns are: C1D the >traditional household?
that consists of a husband( )ife( and children Cand sometimes grandparentsD. Iet(
in the !nited "tates today( one out of eight households is >di+erse? or
>nontraditional(? and includes a +ariety of household types and membersE and C2D
married couple householdsHthe dominant cohort since the formation of the
!nited "tatesHha+e slipped from =8 percent in the 1@:8s to around :8 percent
today. Kearly 28 percent of households are singles or li+e<alones.
Page: =2 $e+el of difficulty: Medium
*=
Part 2: Capturing Marketing Insights
18=. People absorb( almost unconsciously( a )orld+ie) that defines their relationships.
$ist and describe the >+ie)s? that assist or retard this relationship de+elopment
process.
S"gge&ted An&(er: The +ie)s are: C1D +ie)s of themsel+esE C2D +ie)s of othersE
C2D +ie)s of organi6ationsE C9D +ie)s of societyE C:D +ie)s of natureE and C7D +ie)s
of the uni+erse. "tudents should characteri6e each based on materials presented in
the te-t.
Pages: =*A== $e+el of difficulty: 1ard
18@. #escribe the differences bet)een a core belief and a secondary belief. $ist the
primary core beliefs of &mericans as re+ealed by the te-t.
S"gge&ted An&(er: The people li+ing in a particular society hold many core
beliefs and +alues that tend to persist. Most &mericans still belie+e in )ork( in
getting married( in gi+ing to charity( and in being honest. Core beliefs and +alues
are passed on from parents to children and are reinforced by major social
institutions Ce.g.( schools( churches( businesses( and go+ernmentsD. Secondary
beliefs and +alues are more open to change. ;elie+ing in the institution of
marriage is a core beliefE belie+ing that people ought to get married early is a
secondary belief. Marketers ha+e some chance of changing secondary beliefs.
There is little chance to change a core belief or +alues.
Pages: ==A=@ $e+el of difficulty: Medium
118. Many marketers ha+e tried and failed )ith >green sales pitches? Cappeals to one%s
en+ironmental good senseD o+er the past decade. 'hat obstacles Cas cited by the
te-tD did this mo+ement encounter5 ;e sure to briefly e-plain each obstacle.
S"gge&ted An&(er: The obstacles )ere: C1D o+ere-posure and lack of credibilityE
C2D consumer beha+iorE and C2D poor implementation. 0or an e-planation of each
see chapter material.
Page: @1
$e+el of
difficulty:
Medium
*@
Chapter 2: /athering Information and "canning the ,n+ironment
APPLICATION QESTIONS
!"#tip#e Choice
111. #uPont commissioned marketing studies to unco+er personal pillo) beha+ior for
its #acron Polyester unit that supplies filling to pillo) makers and sells its o)n
Comforel brand. 'hich of the follo)ing )as re+ealed by research to be the
primary challenge faced by #uPont in e-panding sales in the pillo) industry5
a. Price.
b. People don%t )ant to gi+e up their old pillo)s.
c. The smell associated )ith polyester.
d. The lack of a fa+orable reputation in the industry.
e. Competition from China.
&ns)er: b Page: *2 $e+el of difficulty: Medium
112. &ssume that you are a marketing information specialist for a large clothing
manufacturer. Iour task is to get functional managers to use the company%s MI"
system on a more regular basis. &ll of the follo)ing 3uestions are )ould be
among those that might be submitted to those manager%s to pi3ue their interest in
MI" ,4C,PT( 5
a. 'hat is your appraisal of the budget for your functional area this year
b. 'hat decisions do you regularly make
c. 'hat information do you need to make these decisions
d. 'hat topics )ould you like to be kept informed of
e. 'hat data analysis programs )ould you )ant
&ns)er: a Page: *2 $e+el of difficulty: ,asy
112. &s the manager of an organi6ation that is attempting to build a MI"( you ha+e
been informed that a MI" is built upon three fundamental information sources.
The sources are ( marketing intelligence acti+ities( and marketing
research.
a. e-ternal records and documents
b. databases found on the Internet
c. consultant reports
d. internal company records
e. secondary data from go+ernment sources such as the ;etter ;usiness ;ureau
&ns)er: d Page: *2 $e+el of difficulty: 1ard
=8
Part 2: Capturing Marketing Insights
119. Pi66a 1ut has millions of customer records gleaned from point<of<sale
transactions at its restaurants. !sing Teradata 'arehouse Miner( Pi66a 1ut has not
only been able to ( but can also target its marketing to find the best
coupon offers for each household and predict the success of campaigns.
a. reduce its outside research emphasis
b. increase profits dramatically
c. reduce tele+ision ad+ertising
d. )in 3uality a)ards
e. purge e-pensi+e duplicates from its direct<mail campaigns
&ns)er: e Page: *9 $e+el of difficulty: Medium
11:. &s a manager you )ould most likely use an internal records system to supply
data( )hereas( you )ould use your marketing intelligence system to
supply happenings data.
a. demand
b. logistical
c. psychographic
d. results
e. primary
&ns)er: d Page: *9 $e+el of difficulty: 1ard
117. 'hen Mc#onald%s used mystery shoppers to assess stores% internal speed
standards( Mc#onald%s )as using )hich of the follo)ing steps to impro+e its
marketing intelligence system5
a. & company can train and moti+ate the sales force to spot and report ne)
de+elopments.
b. & company can moti+ate distributors( retailers( and other intermediaries to
pass along important intelligence.
c. & company can net)ork e-ternally.
d. & company can set up an ad+isory panel.
e. & company can take ad+antage of go+ernment data sources.
&ns)er: b Pages: *9A*7 $e+el of difficulty: Medium
11*. ,-amples of that )ere considered to be successful for toy retailers )ere
;eanie ;abies( 0urbies( and Tickle Me ,lmo dolls.
a. trends
b. fashions
c. fads
d. megatrends
e. styles
&ns)er: c Page: ** $e+el of difficulty: Medium
=1
Chapter 2: /athering Information and "canning the ,n+ironment
11=. More than half of all !.". )orkers are employed in ( in professional or
related occupations( or in a sales or other office<based position.
a. accounting
b. finance
c. computer information systems
d. database maintenance
e. management
&ns)er: e Page: *= $e+el of difficulty: 1ard
11@. &s baby boomers gro) older( their impact on consumer spending can be
described as being .
a. substantial C)ithout o+erstatingD
b. marginal at best
c. eclipsed by the /eneration 4 members
d. only moderate
e. stymied by higher ta-es
&ns)er: a Page: *= $e+el of difficulty: Medium
128. &ccording to information pro+ided in the te-t( is an e-ample of a
country )ith a +ery young and rapidly e-panding population )here products such
as milk( diapers( school supplies( and toys )ould be important.
a. Japan
b. 0rance
c. "pain
d. Me-ico
e. the !nited Qingdom
&ns)er: d Page: =8 $e+el of difficulty: 1ard
121. are typically cynical about hard<sell marketing pitches that promise
more than they can deli+er.
a. ;aby boomers
b. 'ar babies
c. /eneration R
d. /eneration 4
e. Ket<gens
&ns)er: d Page: =1 $e+el of difficulty: Medium
=2
Part 2: Capturing Marketing Insights
122. & fre3uently noted megatrend in the !nited "tates is the increase percentage of
in the total populationE they made up half of all ne) )orkers in the past
decade.
a. &sians Ce-cluding ChineseD
b. Indians
c. Chinese
d. 1ispanics
e. &fricans
&ns)er: # Page: =1 $e+el of difficulty: Medium
122. ;ecause of heightened competition for top students and concerns about
institutional reputations and rankings( many uni+ersities are no) increasing
marketing efforts )ith the purpose of .
a. creating +irtual educational processes
b. creating definable >brands?
c. stimulating >fun? on campus
d. managing organi6ational resources
e. delaying belt<tightening in the future
&ns)er: b Page: =2 $e+el of difficulty: Medium
129. 'hat percentage of people CcohortsD in the !nited "tates are considered to be
married couple households5
a. =8 percent
b. *8 percent
c. 78 percent
d. :8 percent
e. 98 percent
&ns)er: d Page: =2 $e+el of difficulty: 1ard
12:. Jason has just mo+ed in )ith se+eral friends in )hat might commonly be called a
>commune.? &s a 28<something( Jason%s choice of li+ing style is e-emplified by
the term .
a. dropout
b. pseudo<technocrat
c. neo<tribe
d. socialist
e. fascist
&ns)er: c Page: =2 $e+el of difficulty: Medium
=2
Chapter 2: /athering Information and "canning the ,n+ironment
127. The outsourcing )a+e Ccomputer analysis and soft)are designD that has been
e-perienced by India )ith its young technologically<proficient younger generation
has had an impact on traditions as )ell as the economy. Ioung Indians
C>liberation children?D are 3uestioning .
a. the ta- system of the country
b. the political parties of India for rele+ance
c. the meaning of life
d. their charitable responsibilities
e. conser+ati+e traditions such as arranged marriages and no public kissing
&ns)er: e Page: =7 $e+el of difficulty: Medium
12*. 'illiam rose rapidly in his organi6ation and )as the youngest C,. in the
company%s history. 1is self<declared purpose as a leader )as to make his
company an integral part of the &merican )ay of life and to e+entually enter into
public ser+ice of his country. 'illiam )ould be characteri6ed as being a
.
a. preser+er
b. maker
c. taker
d. seeker
e. reaper
&ns)er: b Page: == $e+el of difficulty: Medium
12=. 1o) do &mericans spend their leisure timeH:@ percent of &mericans Cthe
highest percentageD say that >)alking for e-ercise? is their primary )ay of
spending leisure time. 'hat is the second most mentioned leisure acti+ity )ith 9:
percent5
a. ")imming
b. ;icycling
c. Jogging or running
d. /ardening
e. Po)er boating
&ns)er: d Page: =@ $e+el of difficulty: 1ard
12@. To get around obstacles to >green marketing? and make sure en+ironmental
initiati+es are implemented( some companies recommend relying on the efforts of
a .
a. senior ethics officer
b. market ma+en
c. /reen Champion
d. 1L +ice<president
e. )atch<dog committee
&ns)er: c Page: @1 $e+el of difficulty: Medium
=9
Part 2: Capturing Marketing Insights
128. lobby go+ernment officials and pressure business e-ecuti+es to pay
more attention to consumers% rights( )omen%s rights( senior citi6ens% rights(
minority rights( and gay rights.
a. Political action committees CP&CsD
b. !ni+ersities and colleges
c. The ;etter ;usiness ;ureau
d. The !.". Chamber of Commerce
e. Manufacturing trade associations CMT&sD
&ns)er: a Page: @: $e+el of difficulty: ,asy
Short An&(er
121. &lthough e+ery manager in an organi6ation needs to obser+e the outside
en+ironment( marketers ha+e t)o ad+antages. 'hat are those t)o ad+antages5
S"gge&ted An&(er: The t)o ad+antages are: C1D they ha+e disciplined methods
for collecting information and C2D they spend more time interacting )ith
customers and obser+ing competition.
Page: *2 $e+el of difficulty: Medium
122. If you )ere a company%s marketing information manager( you )ould need to
reali6e that your marketing information system should be a cross bet)een three
areas of concern CthoughtsD for managers )ith respect to information. 'hat are
those three concerns CthoughtsD5
S"gge&ted An&(er: The three concerns CthoughtsD are: C1D )hat managers think
they need( C2D )hat managers really need( and C2D )hat is economically feasible.
Page: *2 $e+el of difficulty: Medium
122. 'hat typically )ould be the function of a sales information system5 Think of an
e-ample to illustrate such a function.
S"gge&ted An&(er: & sales information system typically supplies accurate and
timely reports on current sales. "ee the e-ample of 'al<Mart and its sales
information system to add additional data to this 3uestion.
Page: *2 $e+el of difficulty: ,asy
129. ,-plain the statement that >internal records systems supply results data and
marketing intelligence systems supply happenings data.?
S"gge&ted An&(er: The internal records system records Cand reportsD orders(
sales( prices( costs( in+entory le+els( recei+ables( payables( and so on. These are
the results of doing business. Marketing intelligence is a set of procedures and
=:
Chapter 2: /athering Information and "canning the ,n+ironment
sources managers use to obtain e+eryday information about de+elopments in the
marketing en+ironment Chappenings dataD.
Pages: *2A*9 $e+el of difficulty: ,asy
12:. .ne of the )ays that a marketer can impro+e its marketing intelligence function is
to net)ork e-ternally. 'hat does net)orking e-ternally mean5 Pro+ide an
illustration to support your ans)er.
S"gge&ted An&(er: & company that seeks to net)ork e-ternally does so by Cif
applicableD purchasing competitor products( attending open houses and trade
sho)s( reading competitors% published reports( attending stockholder meetings(
talking to employees( dealers( distributors( suppliers( and freight agents( collecting
competitors% ads( and looking up ne)s stories about competitors.
Page: *: $e+el of difficulty: Medium
127. Marketers today use rele+ant online information to assess competitors% product
strengths and )eaknesses. &dditionally( summary comments and o+erall
performance rating of products( ser+ices( and suppliers can be obtained. $ist the
four main )ays marketers can get such information online.
S"gge&ted An&(er: The four )ays are C1D independent customer goods and
ser+ice re+ie) forms( C2D distributor or sales agent feedback sites( C2D combo<sites
offering customer re+ie)s and e-pert opinions( and C9D customer complaint sites.
Page: ** $e+el of difficulty: 1ard
12*. 'hat is a trend and )hy is it important in marketing5
S"gge&ted An&(er: & trend is a direction or se3uence of e+ents that has some
momentum and durability. Trends are more predictable and durable than fads. &
trend re+eals the shape of the future and pro+ides many opportunities.
Page: ** $e+el of difficulty: Medium
12=. &ssume that you are a marketing manager for a youth clothing manufacturer that
has just read about the megatrend of the >rising 1ispanic influence? in the !nited
"tates. ,-plain this megatrend and indicate )hy it might be important to your
company and industry.
S"gge&ted An&(er: &lready the largest minority group in the !nited "tates( )ith
2: million people( the 1ispanic population is projected to increase by 2: percent
in this decade. Though 1ispanic households represented only @ percent of !.".
households in 2888( they accounted for 28 percent of the 9 million children born
in this country that year. "tudents should indicate ho) a youth<oriented clothier
might use such information.
Page: *= $e+el of difficulty: 1ard
=7
Part 2: Capturing Marketing Insights
12@. Characteri6e /eneration I or echo boomers. 'hat implications does this
generation ha+e for marketing o+er the ne-t fe) years5
S"gge&ted An&(er: ;orn bet)een 1@** and 1@@9( no) numbering *2 million(
this group is almost e3ual in si6e to baby boomers. .ne distinguishing
characteristic of this age group is their utter fluency and comfort )ith computer
and Internet technology. "tudents may speculate on addition impacts.
Page: =1 $e+el of difficulty: Medium
198. The !nited "tates )as originally called a >melting pot(? but there are increasing
signs that the melting didn%t occur. ,-plain. 'hat )ould be a >ne)? )ay of
describing our society and ho) it relates to members5
S"gge&ted An&(er: Ko) people call the !nited "tates a >salad bo)l? society(
)ith ethnic groups maintaining their ethnic differences( neighborhoods( and
cultures. This appears to be )hat the +arious ethnic groups ha+e been doing for
sometime.
Page: =1 $e+el of difficulty: Medium
191. &s a marketing manager you ha+e obser+ed that the >traditional household? in the
!nited "tates is gi+ing )ay to the >nontraditional household.? ,-plain )hat this
means and characteri6e the >nontraditional household.?
S"gge&ted An&(er: Today( one of eight households is characteri6ed as being
nontraditional. ,-amples of the nontraditional household )ould be single li+e<
alones( adult li+e<togethers of one or both se-es( single<parent families( childless
married couples( and empty<nesters.
Page: =2 $e+el of difficulty: Medium
192. 'hat t)o factors ha+e helped those businesses that cater to the gro)ing ".1.
Csmall officePhome officeD segment that is nearly 98 million strong5
S"gge&ted An&(er: The t)o factors are: C1D suburban gro)th and C2D a disdain
for commuting.
Page: =: $e+el of difficulty: ,asy
192. 'hat impact are >liberali6ing children? ha+ing on India5
S"gge&ted An&(er: $iberali6ing children ha+e a hunger for achie+ement.
$iberali6ation children are 3uestioning conser+ati+e traditions such as arranged
marriages and no public kissing. They are becoming 'esterni6ed.
Page: =7 $e+el of difficulty: Medium
=*
Chapter 2: /athering Information and "canning the ,n+ironment
199. &s indicated in the te-t( /&P pursues a segmented market strategy )ith three tiers
of retail clothing stores. ,-plain the /&P tier system and indicate e-amples of the
tiers.
S"gge&ted An&(er: /&P has the upscale ;anana Lepublic( the mid<market /&P(
and the budget<priced .ld Ka+y. This strategy has helped /&P to gro) from M*
billion in 1@@7 to M19 billion by 2882.
Page: =7 $e+el of difficulty: Medium
19:. 'ithin our social<cultural en+ironment( consumers often see themsel+es from
different +ie)s. &ssume that you )ere espousing the view of themselves.
Characteri6e this +ie).
S"gge&ted An&(er: People +ary in their relati+e emphasis placed on self<
gratification. In the 78s and *8s there )ere many >pleasure seekers.? .thers
sought self<reali6ation. Today( conser+atism is on the rise.
Pages: =*A== $e+el of difficulty: 1ard
197. #escribe the differences bet)een a core belief and secondary belief. Pro+ide an
e-ample to illustrate your description.
S"gge&ted An&(er: The people li+ing in a particular society hold many core
beliefs and +alues. These tend to persist o+er time. Most &mericans belie+e in
)ork( getting married( in gi+ing to charity( and in being honest. "econdary beliefs
are more open to change such as )hen is the right time to get married.
Page: == $e+el of difficulty: Medium
19*. &ssume that you )ere asked to )rite a brief paragraph indicating )hy a firm
might )ish to pursue a policy of >green marketing.? 1o) )ould your paragraph
read5
S"gge&ted An&(er: The >green marketing? mo+ement is associated )ith
>en+ironmentally friendly? products and marketing programs. These programs
)ere matched to consumers% gro)ing interest in en+ironmental issues.
Page: @1 $e+el of difficulty: Medium
19=. 'hat four trends in technology should marketers monitor5
S"gge&ted An&(er: The four trends are: C1D the pace of change( C2D the
opportunities for inno+ation( C2D +arying LO# budgets( and C9D increased
legislation.
Page: @2 $e+el of difficulty: 1ard
==
Part 2: Capturing Marketing Insights
19@. 'ith respect to opportunities for inno+ation( characteri6e the po)er of +irtual
reality for the marketer.
S"gge&ted An&(er: Nirtual reality is the combination of technologies that allo)s
users to e-perience three<dimensionally( computer<generated en+ironments
through sound( sight( and touch. Nirtual reality has impacted e+erything from our
homes to our automobile designs.
Page: @2 $e+el of difficulty: ,asy
1:8. Consumers are increasingly )illing to s)ap personal information for customi6ed
products from firms. 1o)e+er( there are still consumer concerns. Iou kno) that
pri+acy issues are still a public policy hot button. &s a consumer ad+ocate( list the
consumer concerns that seem to be the most compelling and most difficult to deal
)ith by the marketer.
S"gge&ted An&(er: The consumers concerns are: C1D that they )ill be robbed or
cheated( C2D that pri+ate information )ill be used against them( C2D that someone
)ill steal their identity( C9D that they )ill be bombarded )ith solicitations( and C:D
that children )ill be targeted.
Page: @: $e+el of difficulty: Medium
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