Unformatted text preview: lication 41. A company that specializes in planning and organizing large family reunions has hired you to
identify a target ethnic market. Which market would be ideal?
Hispanics tend to have larger families.
KEY: CB&E Model Customer OBJ: 04-4
TOP: AACSB Diversity
MSC: BLOOMS Application 42. Recession, inflation, and consumers’ incomes are the _____ factors of greatest concern to most
The three economic areas of greatest concern to most marketers are consumers’ incomes,
inflation, and recession.
KEY: CB&E Model Customer
43. After-tax income is referred to as:
b. OBJ: 04-5 TOP: AACSB Reflective MSC: BLOOMS Knowledge
marginal income c.
e. purchasing income
disposable income ANS: E
Disposable income is what consumers have left after paying taxes.
KEY: CB&E Model Customer OBJ: 04-5 TOP: AACSB Reflective MSC: BLOOMS Knowledge 44. China’s new 5 percent tax on disposable wooden chopsticks, reflecting concerns about
deforestation, has been praised by environmentalists. The move is hitting hard at the Japanese,
who consume 25 billion sets of wooden chopsticks annually. Almost all of the chopsticks used in
Japan come from China. The price of wooden chopsticks in Japan has increased by almost 50
percent. The price increase influences which factor of the external environment of restaurant
owners in Japan?
Purchasing power may be diminished, especially for restaurants.
KEY: CB&E Model Customer OBJ: 04-5 TOP: AACSB Reflective MSC: BLOOMS Application 45. When mechanical gas pumps first appeared in the United States in the 1930s, their spinning dials
couldn’t register sales beyond $99.99. Today, some stations still use the retro pumps, but the
limited dials cannot register the sales of higher-priced gas, which often mount about $100 for
SUVs. The pumps can be modernized for about $650, but the company that provides this service
has a huge backlog. This is an example of how _____ factors affect small convenience stores and
technological and cultural
competitive and natural
technological and economic
cultural and economic
demographic and marketing mix
The retrofittings for the pumps are a technological factor, and the increasing price of gas is an
REF: 47 | 48
KEY: CB&E Model Strategy OBJ: 04-5 | 04-6
TOP: AACSB Technology
MSC: BLOOMS Application 46. _____ is measured by comparing income to the relative cost of a set standard of goods and
services in different geographic areas. a.
e. Gross individual profit
Price escalation ANS: B
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- Fall '13
- Marketing, AACSB Reflective, CB&E Model Strategy, CB&E Model