Question 1

Consumers belonging to the same ethnic group have identical tastes and preferences.

Accepted Answer

While there may be some similarities in tastes and preferences among consumers belonging to the same ethnic group, it is not always true that they will have identical preferences. Cultural variations, personal preferences, and individual experiences can all impact consumer behavior.

Question 2

A growing portion of U.S. R&D expenditures goes to the development as opposed to the research side.

Accepted Answer

According to the National Science Foundation, the share of U.S. R&D expenditures devoted to development has been increasing since the 1990s and reached 32.9% in 2018.

Question 3

Marketing strategies of firms should not consider the ethnic and racial diversity existing in their markets.

Accepted Answer

Marketing strategies should take into consideration the ethnic and racial diversity of their markets in order to effectively reach and connect with different segments of their audience. Failure to do so can result in cultural insensitivity and exclusion, which can negatively impact a brand's reputation and sales.

Question 4

Environmental regulations enforced by the government adversely affect automobile and steel manufacturing companies.

Accepted Answer

Environmental regulations enforced by the government often require automobile and steel manufacturing companies to invest in costly equipment and processes to reduce their impact on the environment, which can lead to decreased profits and higher prices for consumers.

Question 5

Market demand for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program.

Accepted Answer

This definition accurately describes market demand for a product.

Question 6

Households comprising of single, separated, widowed, and divorced individuals generally demand larger apartments, and expensive appliances, furniture, and furnishings.

Accepted Answer

Single, separated, widowed, and divorced individuals typically demand smaller living spaces and may prioritize cost-effective options over expensive appliances and furnishings.

Question 7

Of all illiterate adults in the world, two-thirds are women.

Accepted Answer

According to UNESCO, two-thirds of the world's illiterate adults are women.

Question 8

Corporate environmentalism recognizes the need to integrate environmental issues into the firm's strategic plans.

Accepted Answer

Corporate environmentalism emphasizes the integration of environmental concerns and issues into the overall business strategy of a company.

Question 9

The penetrated market is the set of consumers who have an interest in a market offer but do not have the accessibility.

Accepted Answer

The definition of the penetrated market refers to consumers who already have access to the market offer but have not purchased it yet. The statement in the question is referring to the underserved market or the potential market.

Question 10

Regulation of technological changes has been relaxed by the U.S. government over recent years.

Accepted Answer

The answer of Regulation of technological changes has been relaxed...

Question 11

Environmental laws imposed by the government may at times create new business opportunities.

Accepted Answer

Environmental laws may require businesses to adopt new practices or technologies to reduce their environmental impact. This creates a market for companies that offer eco-friendly products and services, such as green energy, waste reduction, and sustainable products. Therefore, environmental laws may lead to the emergence of new businesses and industries.

Question 12

Firms that can develop substitute materials for finite nonrenewable resources have an excellent opportunity.

Accepted Answer

Developing substitute materials for nonrenewable resources can create a significant market opportunity for firms. As nonrenewable resources become scarcer, the demand for substitute materials is likely to increase, providing firms that can develop and produce such materials with a competitive advantage. Additionally, as consumers become more environmentally conscious, they may prefer to purchase products made with alternative, sustainable materials.

Question 13

An expansible market is unlikely to be affected by the level of industry marketing expenditures.

Accepted Answer

An expansible market is one where the total market size can grow significantly with increased marketing efforts, so it is likely to be affected by the level of industry marketing expenditures.

Question 14

Markets with a segment of very wealthy consumers, but high income disparity, present few opportunities to marketers.

Accepted Answer

While there may be a segment of very wealthy consumers in a market with high income disparity, there may still be opportunities to appeal to this segment through luxury or exclusive products/services. Additionally, there may be opportunities to target the aspiring wealthy or upper-middle class that may still be able to afford certain goods or experiences. However, there may be challenges in reaching the broader population with more mass-market offerings due to the income disparity.

Question 15

The time between introduction of products and peak production is shrinking.

Accepted Answer

With advancements in technology and supply chain management, companies are able to bring their products to market faster than ever before, resulting in shorter time periods between introduction and peak production.

Question 16

Industrial economies provide limited marketing opportunities for luxurious goods.

Accepted Answer

This statement is false. Industrial economies, with their greater wealth and consumer base, can provide extensive marketing opportunities for luxurious goods.

Question 17

Business has responded to increased awareness of nature's fragility and finiteness by producing wider varieties of camping, hiking, boating, and fishing gear such as boots, tents, backpacks, and accessories.

Accepted Answer

The statement is true as businesses have indeed responded to increased awareness of nature's fragility and finiteness by producing wider varieties of camping, hiking, boating, and fishing gear such as boots, tents, backpacks, and accessories. This is primarily driven by the growing demand for eco-friendly and sustainable products in the outdoor recreation industry.

Question 18

The available purchasing power in an economy depends on current income, prices, savings, debt, and credit availability.

Accepted Answer

The available purchasing power in an economy is influenced by various factors such as current income, prices, savings, debt, and credit availability. Therefore, the statement is true.

Question 19

Demand estimates prepared by companies are based on four different time periods.

Accepted Answer

The answer of Demand estimates prepared by companies are based...

Question 20

Secondary beliefs and values are passed on from parents to children and reinforced by major social institutions, making them very difficult to change by marketers.

Accepted Answer

Secondary beliefs and values are more open to change than core beliefs and values, making them somewhat easier for marketers to influence through advertising and other promotional strategies.

Quiz 3: Collecting Information and Forecasting Demand