Chapter 04 The Changing American Society: Demographics and Social Stratificatio

Chapter 04 - The Changing American Society: Demographics and Social Stratification

Chapter 04

The Changing American Society: Demographics and Social Stratification

Multiple Choice Questions

1.Digital Savvy consumers are leading edge digital users who are early adopters and diffusers of information related to technology in terms of ____A.Internet usage.B.technology ownership.C.cell phone usage.D.a and b.E.all of the above.

2.Which of the following describe a population in terms of its size, distribution, and structure?A.geographicsB.psychographicsC.demographicsD.censographicsE.behaviorgraphics

3.Harriett wants to describe the population of a new market in which her firms wishes to enter. She wants to describe the population in terms of its size, distribution, and structure. Which of the following should she use?A.psychographicsB.behaviorgraphicsC.censographicsD.demographicsE.geographics

4.Age, gender, education, occupation, and income are examples of _____ variables.A.demographicB.holographicC.geographicD.psychographicE.censographics

5.What is the approximate population of the United States today?A.100 millionB.249 millionC.309 millionD.350 millionE.498 million

6.Which of the following is NOT a reason why the population of the United States has grown steadily since 1960?A.longer life expectanciesB.increasing birth rate for most of the period between 1960 and todayC.immigrationD.baby boomers moving through child-bearing yearsE.all of the above are reasons why the population of the United States has grown

7.Which of the following is true regarding the size and distribution of the population of the United States?A.The population of the United States is approximately 250 million today.B.The population has grown steadily since 1960 due birth rates that have always been on the increase.C.The growth has not been even throughout the United States.D.Midwest states, such as Michigan and Illinois, are expected to grow dramatically in the next ten years.E.The population of the United States has continued to decrease since 1960.

8.Which of the following is the most widely applied single cue we use to initially evaluate and define individuals we meet?A.ageB.incomeC.occupationD.genderE.education

9.Which of the following is strongly associated with occupation?A.incomeB.educationC.ageD.a and bE.a, b, and c

10.Approximately what percentage of the U.S. population has a high school degree?A.25%B.40%C.50%D.75%E.86%

11.Approximately what percentage of the U.S. population has completed college?A.28%B.43%C.50%D.75%E.87%

12.Juan is interested in knowing occupational influences on purchases of satellite radio systems. Which of the following occupations are most likely to purchase this type of product?A.wholesale and retail tradeB.professional, scientific and technicalC.mining and constructionD.a and cE.all of the above

13.Which of the following statements regarding education is FALSE?A.Education is increasingly critical for a "family wage" job.B.Traditional high-paying manufacturing jobs that required relatively little education are rapidly disappearing.C.Education clearly drives income in today's economy.D.Education does not influence how one thinks, makes decisions, and relate to others.E.Education has a strong influence on one's tastes and preferences.

14.A household's purchasing power is a function of which of the following?A.income and accumulated wealthB.age and genderC.income and educationD.occupation and incomeE.social class and education

15.Approximately what percent of American adults is functionally illiterate?A.20%B.43%C.5%D.10%E.30%

16.Taitenger is a famous champagne maker in France. Part of this company's market research of U.S. consumers looked at education levels of champagne consumers. What education level is the likely consumer of champagne to have attained?A.did not graduate high schoolB.graduated high schoolC.attended collegeD.graduated collegeE.none of the above

17.What is the movement called in which companies have expanded opportunities for less affluent consumers to afford luxury?A.mass to classB.class to massC.more to allD.one for allE.all for one

18.An estimate by the consumer of how much money he or she has available to spend on nonessentials is known as _____.A.objective discretionary income (ODI)B.adjusted gross income (AGI)C.adjusted discretionary income (ADI)D.subjective discretionary income (SDI)E.subjective gross income (SGI)

19.The Martin's household income is $123,000 per year. However, this family estimates that they have $45,000 available to spend on nonessentials such as vacations and entertainment. The $45,000 represents the Martin's _____.A.objective discretionary income (ODI)B.adjusted gross income (AGI)C.adjusted discretionary income (ADI)D.subjective discretionary income (SDI)E.subjective gross income (SGI)

20.Which of the following statements regarding age is true?A.Proper age positioning is critical for many products.B.Age affects a consumer's self-concept and lifestyle.C.Our age shapes the media we use.D.Analyzing age cohort groups or generations often provides more meaningful segments and marketing strategies than merely looking at census age groups.E.all of the above

21.Which age category is expected to experience the largest percentage increase between 2010 and 2020?A.< 10B.20-29C.40-49D.60-69E.> 69

22.Procter & Gamble is a major consumer packaged goods manufacturer. Which age category provides the greatest opportunity for P&G in terms of growth between 2010 and 2020?A.< 10B.20-29C.40-49D.60-69E.> 69

23.One's perceived age, a part of one's self-concept, is known as _____.A.felt ageB.real ageC.cognitive ageD.perceptual ageE.chronological age

24.Gertrude is 93 years old, but she perceives herself to be about 65 years old. Sixty-five is Gertrude's _____ age.A.felt ageB.real ageC.cognitive ageD.perceptual ageE.chronological age

25.Which of the following variables is associated with cognitive age?A.healthB.educationC.incomeD.social supportE.all of the above

26.Sam is a healthy 75 year old man. He is a retired attorney, has a substantial retirement income, and is a member of several social groups that travel, help others, and encourage life-long learning. Which of the following is most likely true about Sam?A.Sam's cognitive age is less than 75.B.Sam's cognitive age is 75.C.Sam's cognitive age is greater than 75.D.Sam's cognitive age is 50.E.Sam's cognitive age is 85.

27.A(n) _____ is a group of persons who have experienced a common social, political, historical, and economic environment.A.census age groupB.age cohortC.cognitive groupD.chronological groupE.demographic group

28._____ is the process of describing and explaining the attitudes, values, and behaviors of an age group as well as predicting its future attitudes, values, and behaviors.A.Census analysisB.Demographic analysisC.Generation analysisD.Cognitive analysisE.Cohort analysis

29.Maria is analyzing the baby boom generation by describing and explaining their attitudes, values, and behaviors as well as predicting its future, attitudes, values, and behaviors. Maria is conducting a _____ analysis.A.cohortB.generationalC.demographicD.censusE.cognitive

30._____ deals with the mature market and is based on the theory that people change their outlook on life when they experience major life events such as becoming a grandparent, retiring, losing a spouse, or developing chronic health conditions.A.DemographicsB.GerontographicsC.Cognitive psychologyD.Cohort analysisE.Generational analysis

31.Individuals born before 1930 belong to which generation?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

32.Harold was born in 1923. He entered young adulthood during World War II, and served in the Navy during that war. He has witnessed radical social, economic, and technological change in his lifetime. To which generation does he belong?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

33.Consumers 55 years of age and over constitute the _____ market.A.baby boomB.matureC.generationalD.gerontologicalE.aging

34.Elsie and her two sisters are all in their mid- to late-sixties. They are part of the _____ market.A.boomB.matureC.generationalD.gerontologicalE.aging

35.Which generation is NOT part of the mature market?A.pre-DepressionB.DepressionC.Generation XD.baby boomE.all of the above are part of the mature market

36.Which of the following is a segmentation approach to the mature market that incorporates aging processes and life events related to the physical health and mental outlook of older consumers?A.GerontographicsB.Cognitive psychologyC.DemographicsD.AgeographicsE.Censographics

37.Which cohort was born between 1930 and 1945?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

38.Xavier was born in 1940. He was too young to remember World War II, and he matured during the prosperous years of the 1950s and early 1960s. His favorite singer was, and still is, Elvis Presley. To which generation does he belong?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

39.Which generation "invented" rock and roll and grew up with music and television as important parts of their lives?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

40.Which of the following is a segment of mature consumers?A.Healthy IndulgersB.Ailing OutgoersC.Healthy HermitsD.Frail ReclusesE.all of the above

41.Which of the following is NOT a segment of mature consumers?A.Healthy IndulgersB.Ailing IndulgersC.Ailing OutgoersD.Frail ReclusesE.Healthy Hermits

42.Which segment of mature consumers is mentally and physically active, both spouses are generally still alive, has prepared for retirement both financially and psychologically, is basically content and set to enjoy life, has traded down to a smaller home, likes convenience, personal service, and high-tech home appliances, and is a strong market for travel?A.Healthy IndulgersB.Ailing IndulgersC.Ailing OutgoersD.Frail ReclusesE.Healthy Hermits

43.Willie and Harriet, married for over 30 years, are both in their late 60s and are healthy and physically active. They have prepared for retirement both financially and psychologically, have sold their large five bedroom home for a smaller two bedroom condominium, and take group vacations twice a year. To which segment of mature consumers would Willie and Harriet belong?A.Healthy IndulgersB.Ailing IndulgersC.Ailing OutgoersD.Frail ReclusesE.Healthy Hermits

44._____ have experienced health problems which limit their physical abilities and frequently their financial capability. This segment is also a key market for retirement communities and assisted-living housing. While seniors in this group acknowledge their limits, they also maintain a positive self-esteem and seek to get the most out of life. Independence and socializing are important as is remaining stylish in their dress.A.Healthy HermitsB.Ailing IndulgersC.Ailing OutgoersD.Frail ReclusesE.Healthy Recluses

45.Barbara is a great grandmother with a few health problems that require her to live in assisted-living housing. However, she does not let her physical and economic limitations affect her self-esteem. She remains independent, socializes in several seniors' groups, and still likes to remain stylish in her dress. Barbara would be classified as a(n) _____.A.Healthy HermitB.Ailing OutgoerC.Ailing HermitD.Frail RecluseE.Healthy Indulger

46.People in this group retain their physical health, but life events (i.e., death of a spouse) have reduced their self-concept. They have reacted by becoming withdrawn, and many resent the isolation and the feeling that they are expected to act like old people. They prefer clothing styles that are popular with other seniors and will pay a premium for well-known brands. They tend to stay in homes in which they raised their families, and they are an important part of the do-it-yourself market. Which segment is this?A.Healthy IndulgersB.Ailing OutgoersC.Healthy HermitsD.Frail ReclusesE.Ailing Indulgers

47.James is a widower in good health that lives in the home he and his wife raised their five children. However, he has reacted to his wife's death by becoming withdrawn and feels isolated. He spends much of his time fixing up his house. James is best described as a(n) _____.A.Healthy IndulgerB.Ailing OutgoerC.Healthy HermitD.Frail RecluseE.Ailing Hermit

48.This segment of mature consumers has accepted their old-age status and have adjusted their lifestyles to reflect physical reduced capabilities and social roles. They focus on becoming spiritually stronger, tend to stay at home, and are a major market for health care products. Locational convenience is often a critical factor for this group. Which group is this?A.Healthy IndulgerB.Ailing OutgoerC.Healthy HermitD.Frail RecluseE.Ailing Hermit

49.Myrtle has accepted her old-age status and has adjusted her lifestyle to reflect her reduced physical capabilities and social role. She focuses on becoming spiritually stronger and tends to stay at home. Which segment best describes Myrtle?A.Healthy IndulgerB.Ailing OutgoerC.Healthy HermitD.Frail RecluseE.Ailing Hermit

50.For which group of mature consumers is a convenient location of their physician most important?A.Healthy IndulgerB.Ailing OutgoerC.Healthy HermitD.Frail RecluseE.Ailing Hermit

51.Which generation refers to those individuals born during the dramatic increase of births (i.e., almost 80 million baby births) between the end of World War II and 1964?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

52.John was born in 1955, and he has only known prosperity in his lifetime. He remembers when President Kennedy was assassinated, primarily because his family purchased their first color television not long after that event. While he remembers the Vietnam War, he was too young to be drafted. To which generation does he belong?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

53.Which generation is considered to be more self-centered, individualistic, economically optimistic, skeptical, suspicious of authority, and focused on the present than other generations?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

54.Robert and his wife, Jan, were both born in the 1950s. The last of their three children will graduate from college soon, which is leaving them with increased discretionary income and time. To which generation do Robert and Jan belong?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

55.Which of the following is a reason why more baby boomers continue to work longer than previous generations?A.necessary due to a low income of some baby boomersB.necessary due to a poor pension planC.due to changes in Social Security increasing the age at which full benefits can be drawnD.increased desire to stay active in interesting and rewarding careersE.all of the above

56.Which generation was born between 1965 and 1976?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

57.Nick was born in 1972. As long as he can remember, his mother worked outside the home. When he was 12, his parents divorced, which was hard on him, but the same thing happened to several of his friends. When both of his parents remarried, his view of a family changed to include all of his step-sisters and brothers. To which generation does he belong?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

58.Generation X is also referred to as the _____ generation.A.baby bustB.baby boomletC.mini baby boomD.echo boomE.boomerang

59.Which generation was the first to gain a very broad view of a family, which may include parents, siblings, stepparents, half-siblings, close friends, live-in lovers, and others?A.Depression generationB.baby boom generationC.Generation XD.Generation YE.Millennials

60.Roger is an adult that has moved back in with his parents. He doesn't believe in sacrificing time, energy, and relations to the extent he sees older workers do for the sake of career or economic advancement. He has a master's degree but does not want to work for a large corporation. To which generation does Roger most likely belong?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

61.Individuals born between 1977 and 1994 belong to which generation?A.baby boomB.Generation XC.Generation YD.Generation ZE.Millennial generation

62.Amie was born in 1991. Her mother is a college professor, and her father is an attorney. She's not sure what she wants to do when she grows up, but she knows she will go to college and embark on a career of her own. She was amazed when her grandmother told her that women really couldn't do that when she was young. If a woman did work, choices were usually limited to becoming a teacher, a secretary, or a nurse. Her grandmother told her that she was a secretary, but after she started having children, she left the workforce and stayed home to raise her children, which was common for most women at that time. That concept was totally foreign to Amie. To which generation does she belong?A.baby boomB.Generation XC.Generation YD.Generation ZE.Millennial generation

63.The children of the original baby boomers are known as _____.A.the baby bust generationB.Generation XC.Generation YD.Generation ZE.the Millennial generation

64.Generation Y is sometimes referred to as the _____.A.baby bust generationB.echo boomC.boomerangsD.baby boomletE.step-boomers

65.Placing ads in videogames is known as _____.A.video advertisingB.integrated advertisingC.advergamingD.message integrationE.entertainment integration

66.The newest generation born after 1994 is referred to as _____.A.the baby boom generationB.Generation XC.Generation YD.Generation ZE.Tweens

67.Erin is 12 years old. While label is appropriate for Erin?A.little kidB.big kidC.tweenD.teenagerE.young adult

68.One's position relative to others on one or more dimensions valued by society is known as one's _____.A.societal rankB.social statusC.social standingD.social sphereE.social realm

69.A hierarchical division of a society into relatively distinct and homogeneous groups with respect to attitudes, values, and lifestyles is known as a _____.A.social stratumB.social class systemC.caste systemD.social continuumE.societal ranking

70.The more consistent an individual is on all status dimensions, the greater the degree of _____ for the individual.A.status maturityB.status permanenceC.status inflexibilityD.status crystallizationE.status flexibility

71.Carl is a physician earning $200,000 per year. Using the Coleman-Rainwater system, identify the social class to which Carl belongsA.upper-upperB.lower-upperC.upper-middleD.middleE.working

72.Which term describes consumers' purchase and use of automobiles, homes, yachts, clothes, and so forth primarily to demonstrate their great wealth?A.conspicuous consumptionB.outrageous consumptionC.obnoxious consumptionD.nouveaux consumptionE."blue blood" consumption

73.Nouveaux riche is most commonly associated with the _____.A.upper-middle classB.middle classC.lower-upper classD.upper-upper classE.none of the above

74.The upper-middle class achieve their social position primarily _____.A.through their unusually high incomesB.by their occupation and career orientationC.through inherited positionD.through their children's accomplishmentsE.none of the above

75.Which social class consists of skilled and semiskilled factory, service, and sales workers?A.upper-middleB.middle classC.working classD.upper-lower classE.lower-lower class

76.Buzz is a self-employed construction worker. He is proud of his ability to do "real work" and sees himself as the often-unappreciated backbone of America. He dislikes the upper-middle class and prefers products and stores positioned toward his social-class level. Which term best describes Buzz?A.working-class stiffB."blue blood" classC.white collar workerD.working-class aristocratE.no-collar worker

77.Which social class consists of individuals who are poorly educated, have very low incomes, and work as unskilled laborers?A.lower-lower classB.upper-lower classC.working classD.lower-middle classE.middle class

78.Earl did not complete high school and works as a janitor at two jobs. His income is very low, and he does not possess any skills to help him get a better paying job. Which social class best describes Earl?A.lower-lower classB.upper-lower classC.working classD.lower-middle classE.middle class

79.Which social class has low incomes and minimal education, may be unemployed for long periods of time, and is the major recipient of government support and services provided by non-profit organizations?A.lower-lower classB.upper-lower classC.working classD.lower-middle classE.middle class

80.What two basic approaches are used to measure social status?A.primary and secondary measuresB.single-item and multi-item indexesC.position and status measuresD.income and occupation indexesE.income and education measures

81.Which of the following is NOT a common single-item index of social class?A.educationB.occupationC.incomeD.ageE.all of the above are common single-item indexes of social class

82.In the Hollingshead Index of Social Position, which is true?A.occupation is given a higher weight than educationB.occupation is given the same weight as educationC.income is given a higher weight than occupationD.occupation is given a lower weight than educationE.income is given a lower weight than education

True / False Questions

83.Demographics describe a population in terms of its size, distribution, and structure.TrueFalse

84.Education is probably the most widely applied single cue we use to initially evaluate and define individuals we meet.TrueFalse

85.Over 50 percent of Americans have completed college.TrueFalse

86.Education provides a complete explanation for consumption patterns.TrueFalse

87.Income enables purchases but does not generally cause or explain them.TrueFalse

88.Adjusted gross income (AGI) is an estimate by the consumer of how much money he or she has available to spend on nonessentials.TrueFalse

89.Gerontographics is one segmentation approach to the mature market that incorporates aging processes and life events to the physical health and mental outlook of older consumers.TrueFalse

90.The Depression generation is composed of those individuals born before 1930.TrueFalse

91.Baby boomers are characterized by high education levels, high incomes, and dual-career households.TrueFalse

92.The baby boom generation is the first American generation to seriously confront the issue of "reduced expectations."TrueFalse

93.The children of the original baby boomers, generation Y born between 1977 and 1994, are sometimes referred to as the "baby bust" generation.TrueFalse

94.The newest generation born after 1994 is known as the Millennials.TrueFalse

95.Many upper-upper class consumers exhibit "conspicuous consumption."TrueFalse

96.The Hollingshead Index of Social Position (ISP) is based on four socioeconomic factors: occupation, source of income, house type, and dwelling area.TrueFalse

97.The Hollingshead Index of Social Position (ISP) takes into consideration the rapid expansion of the role of women.TrueFalse

Essay Questions

98.Define the term "demographics," explain why it is important to understand demographics in marketing, and discuss the major demographic variables of interest to marketers.

99.Name and briefly describe the six generations discussed in this chapter.

100.You just started your first marketing job, and your supervisor wants you to become more knowledgeable of the mature market because she sees this market as a growing opportunity. Name and describe the four segments of the mature market that have been identified through gerontographics.

101.Define the term "social class system" and list the social classes relevant in the United States.

102.Discuss the two basic approaches to measuring social status.

Chapter 04 The Changing American Society: Demographics and Social Stratification Answer Key

Multiple Choice Questions

1.(p.115)Digital Savvy consumers are leading edge digital users who are early adopters and diffusers of information related to technology in terms of ____A.Internet usage.B.technology ownership.C.cell phone usage.D.a and b.E.all of the above.

Difficulty: easy2.(p.116)Which of the following describe a population in terms of its size, distribution, and structure?A.geographicsB.psychographicsC.demographicsD.censographicsE.behaviorgraphics

Difficulty: easy3.(p.116)Harriett wants to describe the population of a new market in which her firms wishes to enter. She wants to describe the population in terms of its size, distribution, and structure. Which of the following should she use?A.psychographicsB.behaviorgraphicsC.censographicsD.demographicsE.geographics

Difficulty: moderate4.(p.116-124)Age, gender, education, occupation, and income are examples of _____ variables.A.demographicB.holographicC.geographicD.psychographicE.censographics

Difficulty: easy5.(p.117)What is the approximate population of the United States today?A.100 millionB.249 millionC.309 millionD.350 millionE.498 million

Difficulty: moderate6.(p.117)Which of the following is NOT a reason why the population of the United States has grown steadily since 1960?A.longer life expectanciesB.increasing birth rate for most of the period between 1960 and todayC.immigrationD.baby boomers moving through child-bearing yearsE.all of the above are reasons why the population of the United States has grown

Difficulty: hard7.(p.117)Which of the following is true regarding the size and distribution of the population of the United States?A.The population of the United States is approximately 250 million today.B.The population has grown steadily since 1960 due birth rates that have always been on the increase.C.The growth has not been even throughout the United States.D.Midwest states, such as Michigan and Illinois, are expected to grow dramatically in the next ten years.E.The population of the United States has continued to decrease since 1960.

Difficulty: moderate8.(p.117)Which of the following is the most widely applied single cue we use to initially evaluate and define individuals we meet?A.ageB.incomeC.occupationD.genderE.education

Difficulty: moderate9.(p.117)Which of the following is strongly associated with occupation?A.incomeB.educationC.ageD.a and bE.a, b, and c

Difficulty: moderate10.(p.117)Approximately what percentage of the U.S. population has a high school degree?A.25%B.40%C.50%D.75%E.86%

Difficulty: hard11.(p.117)Approximately what percentage of the U.S. population has completed college?A.28%B.43%C.50%D.75%E.87%

Difficulty: hard12.(p.119)Juan is interested in knowing occupational influences on purchases of satellite radio systems. Which of the following occupations are most likely to purchase this type of product?A.wholesale and retail tradeB.professional, scientific and technicalC.mining and constructionD.a and cE.all of the above

Difficulty: hard13.(p.117 and 119)Which of the following statements regarding education is FALSE?A.Education is increasingly critical for a "family wage" job.B.Traditional high-paying manufacturing jobs that required relatively little education are rapidly disappearing.C.Education clearly drives income in today's economy.D.Education does not influence how one thinks, makes decisions, and relate to others.E.Education has a strong influence on one's tastes and preferences.

Difficulty: hard14.(p.119)A household's purchasing power is a function of which of the following?A.income and accumulated wealthB.age and genderC.income and educationD.occupation and incomeE.social class and education

Difficulty: moderate15.(p.120)Approximately what percent of American adults is functionally illiterate?A.20%B.43%C.5%D.10%E.30%

Difficulty: hard16.(p.121)Taitenger is a famous champagne maker in France. Part of this company's market research of U.S. consumers looked at education levels of champagne consumers. What education level is the likely consumer of champagne to have attained?A.did not graduate high schoolB.graduated high schoolC.attended collegeD.graduated collegeE.none of the above

Difficulty: moderate17.(p.121)What is the movement called in which companies have expanded opportunities for less affluent consumers to afford luxury?A.mass to classB.class to massC.more to allD.one for allE.all for one

Difficulty: moderate18.(p.122)An estimate by the consumer of how much money he or she has available to spend on nonessentials is known as _____.A.objective discretionary income (ODI)B.adjusted gross income (AGI)C.adjusted discretionary income (ADI)D.subjective discretionary income (SDI)E.subjective gross income (SGI)

Difficulty: moderate19.(p.122)The Martin's household income is $123,000 per year. However, this family estimates that they have $45,000 available to spend on nonessentials such as vacations and entertainment. The $45,000 represents the Martin's _____.A.objective discretionary income (ODI)B.adjusted gross income (AGI)C.adjusted discretionary income (ADI)D.subjective discretionary income (SDI)E.subjective gross income (SGI)

Difficulty: moderate20.(p.122-124)Which of the following statements regarding age is true?A.Proper age positioning is critical for many products.B.Age affects a consumer's self-concept and lifestyle.C.Our age shapes the media we use.D.Analyzing age cohort groups or generations often provides more meaningful segments and marketing strategies than merely looking at census age groups.E.all of the above

Difficulty: easy21.(p.123)Which age category is expected to experience the largest percentage increase between 2010 and 2020?A.< 10B.20-29C.40-49D.60-69E.> 69

Difficulty: moderate22.(p.123)Procter & Gamble is a major consumer packaged goods manufacturer. Which age category provides the greatest opportunity for P&G in terms of growth between 2010 and 2020?A.< 10B.20-29C.40-49D.60-69E.> 69

Difficulty: moderate23.(p.124)One's perceived age, a part of one's self-concept, is known as _____.A.felt ageB.real ageC.cognitive ageD.perceptual ageE.chronological age

Difficulty: moderate24.(p.124)Gertrude is 93 years old, but she perceives herself to be about 65 years old. Sixty-five is Gertrude's _____ age.A.felt ageB.real ageC.cognitive ageD.perceptual ageE.chronological age

Difficulty: moderate25.(p.124)Which of the following variables is associated with cognitive age?A.healthB.educationC.incomeD.social supportE.all of the above

Difficulty: easy26.(p.124)Sam is a healthy 75 year old man. He is a retired attorney, has a substantial retirement income, and is a member of several social groups that travel, help others, and encourage life-long learning. Which of the following is most likely true about Sam?A.Sam's cognitive age is less than 75.B.Sam's cognitive age is 75.C.Sam's cognitive age is greater than 75.D.Sam's cognitive age is 50.E.Sam's cognitive age is 85.

Difficulty: moderate27.(p.124)A(n) _____ is a group of persons who have experienced a common social, political, historical, and economic environment.A.census age groupB.age cohortC.cognitive groupD.chronological groupE.demographic group

Difficulty: moderate28.(p.124)_____ is the process of describing and explaining the attitudes, values, and behaviors of an age group as well as predicting its future attitudes, values, and behaviors.A.Census analysisB.Demographic analysisC.Generation analysisD.Cognitive analysisE.Cohort analysis

Difficulty: moderate29.(p.124)Maria is analyzing the baby boom generation by describing and explaining their attitudes, values, and behaviors as well as predicting its future, attitudes, values, and behaviors. Maria is conducting a _____ analysis.A.cohortB.generationalC.demographicD.censusE.cognitive

Difficulty: moderate30.(p.125)_____ deals with the mature market and is based on the theory that people change their outlook on life when they experience major life events such as becoming a grandparent, retiring, losing a spouse, or developing chronic health conditions.A.DemographicsB.GerontographicsC.Cognitive psychologyD.Cohort analysisE.Generational analysis

Difficulty: moderate31.(p.125)Individuals born before 1930 belong to which generation?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

Difficulty: moderate32.(p.125)Harold was born in 1923. He entered young adulthood during World War II, and served in the Navy during that war. He has witnessed radical social, economic, and technological change in his lifetime. To which generation does he belong?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

Difficulty: moderate33.(p.125)Consumers 55 years of age and over constitute the _____ market.A.baby boomB.matureC.generationalD.gerontologicalE.aging

Difficulty: easy34.(p.125)Elsie and her two sisters are all in their mid- to late-sixties. They are part of the _____ market.A.boomB.matureC.generationalD.gerontologicalE.aging

Difficulty: moderate35.(p.125)Which generation is NOT part of the mature market?A.pre-DepressionB.DepressionC.Generation XD.baby boomE.all of the above are part of the mature market

Difficulty: moderate36.(p.125)Which of the following is a segmentation approach to the mature market that incorporates aging processes and life events related to the physical health and mental outlook of older consumers?A.GerontographicsB.Cognitive psychologyC.DemographicsD.AgeographicsE.Censographics

Difficulty: moderate37.(p.125-126)Which cohort was born between 1930 and 1945?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

Difficulty: moderate38.(p.125-127)Xavier was born in 1940. He was too young to remember World War II, and he matured during the prosperous years of the 1950s and early 1960s. His favorite singer was, and still is, Elvis Presley. To which generation does he belong?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

Difficulty: moderate39.(p.125-127)Which generation "invented" rock and roll and grew up with music and television as important parts of their lives?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

Difficulty: moderate40.(p.126)Which of the following is a segment of mature consumers?A.Healthy IndulgersB.Ailing OutgoersC.Healthy HermitsD.Frail ReclusesE.all of the above

Difficulty: easy41.(p.126)Which of the following is NOT a segment of mature consumers?A.Healthy IndulgersB.Ailing IndulgersC.Ailing OutgoersD.Frail ReclusesE.Healthy Hermits

Difficulty: moderate42.(p.126)Which segment of mature consumers is mentally and physically active, both spouses are generally still alive, has prepared for retirement both financially and psychologically, is basically content and set to enjoy life, has traded down to a smaller home, likes convenience, personal service, and high-tech home appliances, and is a strong market for travel?A.Healthy IndulgersB.Ailing IndulgersC.Ailing OutgoersD.Frail ReclusesE.Healthy Hermits

Difficulty: moderate43.(p.126)Willie and Harriet, married for over 30 years, are both in their late 60s and are healthy and physically active. They have prepared for retirement both financially and psychologically, have sold their large five bedroom home for a smaller two bedroom condominium, and take group vacations twice a year. To which segment of mature consumers would Willie and Harriet belong?A.Healthy IndulgersB.Ailing IndulgersC.Ailing OutgoersD.Frail ReclusesE.Healthy Hermits

Difficulty: moderate44.(p.126)_____ have experienced health problems which limit their physical abilities and frequently their financial capability. This segment is also a key market for retirement communities and assisted-living housing. While seniors in this group acknowledge their limits, they also maintain a positive self-esteem and seek to get the most out of life. Independence and socializing are important as is remaining stylish in their dress.A.Healthy HermitsB.Ailing IndulgersC.Ailing OutgoersD.Frail ReclusesE.Healthy Recluses

Difficulty: moderate45.(p.126)Barbara is a great grandmother with a few health problems that require her to live in assisted-living housing. However, she does not let her physical and economic limitations affect her self-esteem. She remains independent, socializes in several seniors' groups, and still likes to remain stylish in her dress. Barbara would be classified as a(n) _____.A.Healthy HermitB.Ailing OutgoerC.Ailing HermitD.Frail RecluseE.Healthy Indulger

Difficulty: moderate46.(p.126)People in this group retain their physical health, but life events (i.e., death of a spouse) have reduced their self-concept. They have reacted by becoming withdrawn, and many resent the isolation and the feeling that they are expected to act like old people. They prefer clothing styles that are popular with other seniors and will pay a premium for well-known brands. They tend to stay in homes in which they raised their families, and they are an important part of the do-it-yourself market. Which segment is this?A.Healthy IndulgersB.Ailing OutgoersC.Healthy HermitsD.Frail ReclusesE.Ailing Indulgers

Difficulty: moderate47.(p.126)James is a widower in good health that lives in the home he and his wife raised their five children. However, he has reacted to his wife's death by becoming withdrawn and feels isolated. He spends much of his time fixing up his house. James is best described as a(n) _____.A.Healthy IndulgerB.Ailing OutgoerC.Healthy HermitD.Frail RecluseE.Ailing Hermit

Difficulty: moderate48.(p.126-127)This segment of mature consumers has accepted their old-age status and have adjusted their lifestyles to reflect physical reduced capabilities and social roles. They focus on becoming spiritually stronger, tend to stay at home, and are a major market for health care products. Locational convenience is often a critical factor for this group. Which group is this?A.Healthy IndulgerB.Ailing OutgoerC.Healthy HermitD.Frail RecluseE.Ailing Hermit

Difficulty: moderate49.(p.126-127)Myrtle has accepted her old-age status and has adjusted her lifestyle to reflect her reduced physical capabilities and social role. She focuses on becoming spiritually stronger and tends to stay at home. Which segment best describes Myrtle?A.Healthy IndulgerB.Ailing OutgoerC.Healthy HermitD.Frail RecluseE.Ailing Hermit

Difficulty: moderate50.(p.126-127)For which group of mature consumers is a convenient location of their physician most important?A.Healthy IndulgerB.Ailing OutgoerC.Healthy HermitD.Frail RecluseE.Ailing Hermit

Difficulty: moderate51.(p.127-129)Which generation refers to those individuals born during the dramatic increase of births (i.e., almost 80 million baby births) between the end of World War II and 1964?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

Difficulty: easy52.(p.127-129)John was born in 1955, and he has only known prosperity in his lifetime. He remembers when President Kennedy was assassinated, primarily because his family purchased their first color television not long after that event. While he remembers the Vietnam War, he was too young to be drafted. To which generation does he belong?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

Difficulty: moderate53.(p.127-129)Which generation is considered to be more self-centered, individualistic, economically optimistic, skeptical, suspicious of authority, and focused on the present than other generations?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

Difficulty: moderate54.(p.127-129)Robert and his wife, Jan, were both born in the 1950s. The last of their three children will graduate from college soon, which is leaving them with increased discretionary income and time. To which generation do Robert and Jan belong?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

Difficulty: moderate55.(p.129)Which of the following is a reason why more baby boomers continue to work longer than previous generations?A.necessary due to a low income of some baby boomersB.necessary due to a poor pension planC.due to changes in Social Security increasing the age at which full benefits can be drawnD.increased desire to stay active in interesting and rewarding careersE.all of the above

Difficulty: easy56.(p.129-132)Which generation was born between 1965 and 1976?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

Difficulty: moderate57.(p.129-132)Nick was born in 1972. As long as he can remember, his mother worked outside the home. When he was 12, his parents divorced, which was hard on him, but the same thing happened to several of his friends. When both of his parents remarried, his view of a family changed to include all of his step-sisters and brothers. To which generation does he belong?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

Difficulty: moderate58.(p.129-132)Generation X is also referred to as the _____ generation.A.baby bustB.baby boomletC.mini baby boomD.echo boomE.boomerang

Difficulty: moderate59.(p.129-132)Which generation was the first to gain a very broad view of a family, which may include parents, siblings, stepparents, half-siblings, close friends, live-in lovers, and others?A.Depression generationB.baby boom generationC.Generation XD.Generation YE.Millennials

Difficulty: moderate60.(p.129-132)Roger is an adult that has moved back in with his parents. He doesn't believe in sacrificing time, energy, and relations to the extent he sees older workers do for the sake of career or economic advancement. He has a master's degree but does not want to work for a large corporation. To which generation does Roger most likely belong?A.pre-Depression generationB.Depression generationC.baby boom generationD.Generation XE.Generation Y

Difficulty: moderate61.(p.132-135)Individuals born between 1977 and 1994 belong to which generation?A.baby boomB.Generation XC.Generation YD.Generation ZE.Millennial generation

Difficulty: moderate62.(p.132-135)Amie was born in 1991. Her mother is a college professor, and her father is an attorney. She's not sure what she wants to do when she grows up, but she knows she will go to college and embark on a career of her own. She was amazed when her grandmother told her that women really couldn't do that when she was young. If a woman did work, choices were usually limited to becoming a teacher, a secretary, or a nurse. Her grandmother told her that she was a secretary, but after she started having children, she left the workforce and stayed home to raise her children, which was common for most women at that time. That concept was totally foreign to Amie. To which generation does she belong?A.baby boomB.Generation XC.Generation YD.Generation ZE.Millennial generation

Difficulty: moderate63.(p.132-135)The children of the original baby boomers are known as _____.A.the baby bust generationB.Generation XC.Generation YD.Generation ZE.the Millennial generation

Difficulty: moderate64.(p.132)Generation Y is sometimes referred to as the _____.A.baby bust generationB.echo boomC.boomerangsD.baby boomletE.step-boomers

Difficulty: moderate65.(p.133)Placing ads in videogames is known as _____.A.video advertisingB.integrated advertisingC.advergamingD.message integrationE.entertainment integration

Difficulty: moderate66.(p.135)The newest generation born after 1994 is referred to as _____.A.the baby boom generationB.Generation XC.Generation YD.Generation ZE.Tweens

Difficulty: moderate67.(p.135)Erin is 12 years old. While label is appropriate for Erin?A.little kidB.big kidC.tweenD.teenagerE.young adult

Difficulty: moderate68.(p.135)One's position relative to others on one or more dimensions valued by society is known as one's _____.A.societal rankB.social statusC.social standingD.social sphereE.social realm

Difficulty: moderate69.(p.136)A hierarchical division of a society into relatively distinct and homogeneous groups with respect to attitudes, values, and lifestyles is known as a _____.A.social stratumB.social class systemC.caste systemD.social continuumE.societal ranking

Difficulty: moderate70.(p.136)The more consistent an individual is on all status dimensions, the greater the degree of _____ for the individual.A.status maturityB.status permanenceC.status inflexibilityD.status crystallizationE.status flexibility

Difficulty: hard71.(p.137)Carl is a physician earning $200,000 per year. Using the Coleman-Rainwater system, identify the social class to which Carl belongsA.upper-upperB.lower-upperC.upper-middleD.middleE.working

Difficulty: moderate72.(p.138)Which term describes consumers' purchase and use of automobiles, homes, yachts, clothes, and so forth primarily to demonstrate their great wealth?A.conspicuous consumptionB.outrageous consumptionC.obnoxious consumptionD.nouveaux consumptionE."blue blood" consumption

Difficulty: easy73.(p.138)Nouveaux riche is most commonly associated with the _____.A.upper-middle classB.middle classC.lower-upper classD.upper-upper classE.none of the above

Difficulty: moderate74.(p.138-139)The upper-middle class achieve their social position primarily _____.A.through their unusually high incomesB.by their occupation and career orientationC.through inherited positionD.through their children's accomplishmentsE.none of the above

Difficulty: hard75.(p.140-141)Which social class consists of skilled and semiskilled factory, service, and sales workers?A.upper-middleB.middle classC.working classD.upper-lower classE.lower-lower class

Difficulty: moderate76.(p.141)Buzz is a self-employed construction worker. He is proud of his ability to do "real work" and sees himself as the often-unappreciated backbone of America. He dislikes the upper-middle class and prefers products and stores positioned toward his social-class level. Which term best describes Buzz?A.working-class stiffB."blue blood" classC.white collar workerD.working-class aristocratE.no-collar worker

Difficulty: hard77.(p.141)Which social class consists of individuals who are poorly educated, have very low incomes, and work as unskilled laborers?A.lower-lower classB.upper-lower classC.working classD.lower-middle classE.middle class

Difficulty: moderate78.(p.141-142)Earl did not complete high school and works as a janitor at two jobs. His income is very low, and he does not possess any skills to help him get a better paying job. Which social class best describes Earl?A.lower-lower classB.upper-lower classC.working classD.lower-middle classE.middle class

Difficulty: moderate79.(p.143)Which social class has low incomes and minimal education, may be unemployed for long periods of time, and is the major recipient of government support and services provided by non-profit organizations?A.lower-lower classB.upper-lower classC.working classD.lower-middle classE.middle class

Difficulty: moderate80.(p.143)What two basic approaches are used to measure social status?A.primary and secondary measuresB.single-item and multi-item indexesC.position and status measuresD.income and occupation indexesE.income and education measures

Difficulty: moderate81.(p.143)Which of the following is NOT a common single-item index of social class?A.educationB.occupationC.incomeD.ageE.all of the above are common single-item indexes of social class

Difficulty: hard82.(p.144)In the Hollingshead Index of Social Position, which is true?A.occupation is given a higher weight than educationB.occupation is given the same weight as educationC.income is given a higher weight than occupationD.occupation is given a lower weight than educationE.income is given a lower weight than education

Difficulty: hard

True / False Questions

83.(p.116)Demographics describe a population in terms of its size, distribution, and structure.TRUE

Difficulty: easy84.(p.117)Education is probably the most widely applied single cue we use to initially evaluate and define individuals we meet.FALSE

Difficulty: moderate85.(p.117)Over 50 percent of Americans have completed college.FALSE

Difficulty: moderate86.(p.117-119)Education provides a complete explanation for consumption patterns.FALSE

Difficulty: easy87.(p.122)Income enables purchases but does not generally cause or explain them.TRUE

Difficulty: moderate88.(p.122)Adjusted gross income (AGI) is an estimate by the consumer of how much money he or she has available to spend on nonessentials.FALSE

Difficulty: moderate89.(p.125)Gerontographics is one segmentation approach to the mature market that incorporates aging processes and life events to the physical health and mental outlook of older consumers.TRUE

Difficulty: moderate90.(p.125)The Depression generation is composed of those individuals born before 1930.FALSE

Difficulty: moderate91.(p.128)Baby boomers are characterized by high education levels, high incomes, and dual-career households.TRUE

Difficulty: easy92.(p.130)The baby boom generation is the first American generation to seriously confront the issue of "reduced expectations."FALSE

Difficulty: hard93.(p.132)The children of the original baby boomers, generation Y born between 1977 and 1994, are sometimes referred to as the "baby bust" generation.FALSE

Difficulty: moderate94.(p.135)The newest generation born after 1994 is known as the Millennials.TRUE

Difficulty: easy95.(p.138)Many upper-upper class consumers exhibit "conspicuous consumption."FALSE

Difficulty: moderate96.(p.144-145)The Hollingshead Index of Social Position (ISP) is based on four socioeconomic factors: occupation, source of income, house type, and dwelling area.FALSE

Difficulty: hard97.(p.145)The Hollingshead Index of Social Position (ISP) takes into consideration the rapid expansion of the role of women.FALSE

Difficulty: easy

Essay Questions

98.(p.116-124)Define the term "demographics," explain why it is important to understand demographics in marketing, and discuss the major demographic variables of interest to marketers.

Demographics describe a population in terms of its size, distribution, and structure. Demographics influence consumption behaviors both directly and by affecting other attributes of individuals, such as their personal values and decision styles. Marketers frequently segment markets on the basis of demographics and use that information to select appropriate media and develop effective promotional themes. Population size and distribution are important to understand, and regions of the country serve as important subcultures whose members have unique tastes and preferences. Occupation is probably the most widely applied single cue we use to initially evaluate and define individuals we meet, and it influences all aspects of the consumption process. Education is another demographic variable of interest to marketers because it influences what one can purchase by partially determining one's income and occupation and has a strong influence on one's tastes and preferences. Income enables purchases but does not generally cause or explain them. Thus, income is generally more effective as a segmentation variable when used in conjunction with other demographic variables. Finally, age positioning is critical for many products. Age influences the consumption of many products. While age groups as defined by the census are often a useful way to understand and segment a market, analyzing age cohort groups or generations will often provide more meaningful segments and marketing strategies.

Difficulty: moderate99.(p.1 25-135)Name and briefly describe the six generations discussed in this chapter.

Pre-Depression Generation--composed of those individuals born before 1930. These individuals grew up in traumatic times and have witnessed radical social, economic, and technological changes. As a group, they are conservative and concerned with financial and personal security.Depression Generation--cohort born between 1930 and 1945. They were small children during the Depression and World War II and matured during the prosperous years of the 1950s and early 60s. Most have or will soon retire and have accumulated substantial wealth. Many are still in excellent health and are an important target segment for the travel industry.Baby Boom Generation--born during the dramatic increase of births between the end of World War II and 1964. Most of this group grew up during the prosperous 1950s and 1960s. They are considered to be more self-centered, individualistic, economically optimistic, skeptical, suspicious of authority, and focused on the present than other generations. They are characterized by high education levels, high incomes, and dual-career households.Generation X--often referred to as the baby bust generation and was born between 1965 and 1976. It is smaller than the baby boom generation and reached adulthood during difficult economic times. They have a broad view of family and is the first generation to seriously confront the issue of "reduced expectations." This generation is more highly educated than previous generations and tends to blame the baby boom generation for the difficult future they see for themselves.Generation Y--children of the original baby boomers and were born between 1977 and 1994. They are sometimes referred to as the "echo boom." Overall, it is the first generation to grow up with virtually full-employment opportunities for women, with dual-income households the standard, and a wide array of family types seen as normal. This generation is characterized by a strong sense of independence and autonomy and is assertive, self-reliant, emotionally and intellectually expressive, innovative, and curious.Tweens--born after 1994. They will likely continue trends in increased education, diversity, and technology usage. The oldest of this group, now in the so-called "tween" years (8-14) have many of the same characteristics as the teens of Generation Y.

Difficulty: hard100.(p.126-127)You just started your first marketing job, and your supervisor wants you to become more knowledgeable of the mature market because she sees this market as a growing opportunity. Name and describe the four segments of the mature market that have been identified through gerontographics.

Healthy Indulgers--This segment is physically and mentally healthy, has the most in common with the baby boomers than any other segment, and will increasingly be composed of baby boomers as they age. Both spouses are generally still alive, and they have prepared for retirement both financially and psychologically. They are content and set to enjoy life and often sell their large family homes and move into smaller dwellings. They like activities, convenience, personal service, and high-tech home appliances and are a strong part of the market for cruises and group travel.Ailing Outgoers--They have experienced health problems which limit their physical abilities and frequently their financial capability. They are a key market for retirement communities and assisted-living housing. They acknowledge their limits, maintain positive self-esteem, and seek to get the most out of life. Independence and socializing are important as is remaining stylish in their dress. Limited funds and physical ability are issues. Value pricing and discounts are viewed positively as are ease and convenience.Healthy Hermits--These individuals retain their physical health, but life events (i.e., death of a spouse) have reduced their self-concept and have caused them to become withdrawn. Many resent the isolation and the feeling that they are expected to act like old people, and they do not want to stand out. They prefer clothing styles that are popular with other seniors and will pay a premium for well-known brands. They tend to stay in the homes in which they raised their families and are an important part of the do-it-yourself market.Frail Recluses--They have accepted their old-age status and have adjusted their lifestyles to reflect reduced physical capabilities and social roles. They focus on becoming spiritually stronger and tend to stay at home. They are a major market for health care products, home exercise and health testing equipment, and emergency response systems. Locational convenience is a critical factor for this group.

Difficulty: hard101.(p.136)Define the term "social class system" and list the social classes relevant in the United States.

Social class system is defined as a hierarchical division of a society into relatively distinct and homogeneous groups with respect to attitudes, values, and lifestyles. The social structure in the United States is composed of: Upper Americans (upper-upper, lower-upper, and upper-middle class), Middle Americans (middle class and working class), and Lower Americans (upper-lower and lower-lower).

Difficulty: easy102.(p.143-145)Discuss the two basic approaches to measuring social status.

The two basic approaches to measuring social status: a single-item index and a multi-item index. Single-item indexes estimate social status on the basis of a single dimension. The three most common single-item indexes are education, occupation, and income. Researchers have developed multi-item indexes to measure social class. The Hollingshead Index of Social Position (ISP) is a two-item index that is well developed and widely used and is developed using an occupation scale and an education scale.

Difficulty: hard4-2