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CHAPTER 4

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. What is the approximate population of the United States today?

A. 100 million
B. 249 million
C. 320 million
D. 350 million
E. 498 million

3. Which of the following is NOT a reason the population of the United States has grown steadily since 1960?
A. longer life expectancies
B. increasing birth rate for most of the period between 1960 and today
C. immigration
D. baby boomers moving through child-bearing years
E. All of the above are reasons the population of the United States has grown.

4. 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 to birthrates 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 10 years.
E. The population of the United States has continued to decrease since 1960.

5. Which of the following is the most widely applied single cue we use to initially evaluate and define
individuals we meet?
A. age
B. income
C. occupation
D. gender
E. education

6. Which of the following is strongly associated with occupation?

A. income
B. education
C. age
D. A and B
E. A, B, and C

7. Approximately what percentage of the U.S. population has a high school degree?
A. 25 percent
B. 40 percent
C. 50 percent
D. 75 percent
E. 87 percent
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8. Approximately what percentage of the U.S. population has completed college?

A. 30 percent
B. 43 percent
C. 50 percent
D. 75 percent
E. 87 percent

9. 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 trade
B. professional, scientific and technical
C. mining and construction
D. A and C
E. all of the above

10. 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 relates to others.
E. Education has a strong influence on one's tastes and preferences.

11. A household's purchasing power is a function of which of the following?

A. income and accumulated wealth
B. age and gender
C. income and education
D. occupation and income
E. social class and education

12. When comparing income levels by education and gender, which of the following is TRUE?
A. Men and women earn about the same income if they have the same education.
B. The difference between men and women on earnings occurs mostly at the lower education levels.
C. The difference between men and women on earnings occurs mostly at the higher education levels.
D. Men earn more than women at each level of education.
E. Women earn more than men at each level of education.

13. Budweiser is a popular brand of beer. Part of this company's market research of U.S. consumers looked at
education levels of beer consumers. What education level is the likely consumer of beer (that with highest
propensity to buy and consumer beer) to have attained?
A. did not graduate high school
B. graduated high school
C. attended college
D. graduated college
E. none of the above

14. What is the movement called in which companies have expanded opportunities for less affluent consumers
to afford luxury?
A. mass to class
B. class to mass
C. more to all
D. one for all
E. all for one
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15. 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)

16. The Martins' 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 Martins' _____.
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)

17. 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 are true.

18. 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. <10
B. 20-29
C. 40-49
D. 60-69
E. >69

19. Gertrude is 93 years old, but she perceives herself to be about 65 years old. Sixty-five is Gertrude's _____
age.
A. felt age
B. real age
C. cognitive age
D. perceptual age
E. chronological age

20. Which of the following variables is associated with cognitive age?

A. health
B. education
C. income
D. social support
E. all of the above

21. 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.
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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.

22. Maria is analyzing the baby boom generation by describing and explaining its attitudes, values, and
behaviors as well as predicting its future attitudes, values, and behaviors. Maria is conducting a _____
analysis.
A. cohort
B. generational
C. demographic
D. census
E. cognitive

23. _____ 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. Demographics
B. Gerontographics
C. Cognitive psychology
D. Cohort analysis
E. Generational analysis

24. Consumers 55 years of age and over constitute the _____ market.
A. baby boom
B. mature
C. generational
D. gerontological
E. aging

25. Elsie and her two sisters are all in their mid-to late- 60s. They are part of the _____ market.
A. Generation X
B. mature
C. generational
D. gerontological
E. aging

26. Which generation is NOT part of the mature market?

A. pre-Depression
B. Depression
C. Generation X
D. baby boom
E. All of the above are part of the mature market.

27. 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. gerontographics
B. cognitive psychology
C. demographics
D. ageographics
E. censographics

28. Which generation "invented" rock and roll and grew up with music and television as important parts of
their lives?
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A. pre-Depression generation
B. Depression generation
C. baby boom generation
D. Generation X
E. Generation Y

29. Which of the following is a segment of mature consumers?

A. Healthy Indulgers
B. Ailing Outgoers
C. Healthy Hermits
D. Frail Recluses
E. all of the above

30. Which segment of mature consumers is physically and mentally healthy and is thus active, independent,
and out to enjoy life?
A. Healthy Indulgers
B. Ailing Indulgers
C. Ailing Outgoers
D. Frail Recluses
E. Healthy Hermits

31. _____ have experienced health problems that limit their physical activities, but their positive outlook
meansthey remain active within physical constraints.
A. Healthy Hermits
B. Ailing Indulgers
C. Ailing Outgoers
D. Frail Recluses
E. Healthy Recluses

32. People in this group retain their physical health, but life events (i.e., death of a spouse) have reduced their
self-concept, and they become withdrawn.
A. Healthy Indulgers
B. Ailing Outgoers
C. Healthy Hermits
D. Frail Recluses
E. Ailing Indulgers

33. This segment of mature consumers has accepted their old-age status and has adjusted their lifestyles to
reflect reduced physical capabilities and social roles.
A. Healthy Indulger
B. Ailing Outgoer
C. Healthy Hermit
D. Frail Recluse
E. Ailing Hermit

34. The largest, most diverse generational segment is ____.

A. Generation X
B. Generation Y
C. Generation Z
D. baby boomers
E. tweens
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35. Which boomer segment, identified by Focalyst, is highly connected with friends and community, which
may explain their positive outlook?
A. yesterday
B. today
C. tomorrow
D. futurists
E. optimists

36. 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 generation
B. Depression generation
C. baby boom generation
D. Generation X
E. Generation Y

37. Which of the following is a reason more baby boomers continue to work longer than previous generations?
A. necessity due to a low income of some baby boomers
B. necessity due to a poor pension plan
C. necessity due to changes in Social Security increasing the age at which full benefits can be drawn
D. increased desire to stay active in interesting and rewarding careers
E. all of the above

38. 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 generation
B. baby boom generation
C. Generation X
D. Generation Y
E. Millennials

39. Roger is an adult who 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 generation
B. Depression generation
C. baby boom generation
D. Generation X
E. Generation Y

40. Generation Y is sometimes referred to as the _____.

A. baby bust generation
B. echo boom
C. boomerangs
D. baby boomlet
E. step-boomers

41. Placing ads in video games is known as _____.

A. video advertising
B. integrated advertising
C. advergaming
D. message integration
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E. entertainment integration

42. Late adolescents and early teens are known as _________.

A. little kids
B. big kids
C. tweens
D. Generation X
E. young adults

43. Which term describes consumers' purchase and use of automobiles, homes, yachts, clothes, and so forth
primarily to demonstrate their great wealth?
A. conspicuous consumption
B. outrageous consumption
C. obnoxious consumption
D. nouveaux consumption
E. "blue blood" consumption

44. Nouveaux riches are most commonly associated with the _____.
A. upper-middle class
B. middle class
C. lower-upper class
D. upper-upper class
E. none of the above

45. The upper-middle class achieve their social position primarily _____.
A. through their unusually high incomes
B. by their occupation and career orientation
C. through inherited position
D. through their children's accomplishments
E. none of the above

46. Which social class consists of skilled and semiskilled factory, service, and sales workers?
A. upper-middle
B. middle class
C. working class
D. upper-lower class
E. lower-lower class

47. Which social class consists of office workers, schoolteachers, lower-level managers, plumbers, and factory
supervisors?
A. upper-middle
B. working class
C. lower class
D. middle class
E. lower-lower class

48. 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 stiff
B. "blue blood" class
C. white-collar worker
D. working-class aristocrat
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E. no-collar worker

49. Which social class consists of individuals who are poorly educated, have very low incomes, and work as
unskilled laborers?
A. lower-lower class
B. upper-lower class
C. working class
D. lower-middle class
E. middle class

50. 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 class
B. upper-lower class
C. working class
D. lower-middle class
E. middle class

51. 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 class
B. upper-lower class
C. working class
D. lower-middle class
E. middle class

52. In the Hollingshead Index of Social Position, which is TRUE?

A. Occupation is given a higher weight than education.
B. Occupation is given the same weight as education.
C. Income is given a higher weight than occupation.
D. Occupation is given a lower weight than education.
E. Income is given a lower weight than education.

Education provides a complete explanation for consumption patterns. False

Adjusted gross income (AGI) is an estimate by the consumer of how much money he or she has available to
spend on nonessentials. False
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
Generation Z are more "risk takers" than Generation X or Generation Y. False
Many upper-upper class consumers exhibit "conspicuous consumption." False
The Hollingshead Index of Social Position (ISP) is based on four socioeconomic factors: occupation, source of
income, house type, and dwelling area. False
The Hollingshead Index of Social Position (ISP) takes into consideration the rapid expansion of the role of
women. False
According to the "consumer insight" in your text, social class is the true "root" or underlying cause of the
observed pattern that lower SES consumers have poor quality diets. False

1. The baby boom market is the largest generational segment in America, but also one of the most
diverse. What are the common stereotypes of the boomer market, and provide insight as to
segmentation opportunities.
Boomers all have the same values and outlook. This is far from true. Boomers are quite different in values
and outlook in part due to differences in life experiences relating to health and finances. Boomers are self-
centered. The phrase "Me Generation" was created for baby boomers. However, many boomers are much more
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socially and environmentally conscious than that label suggests. One study estimates that roughly half of all
boomers are "Green Boomers," meaning they buy environmentally friendly products.
Boomers are not tech savvy. The Internet and mobile technology are an important part of many boomers' lives.
Roughly 80 percent of boomers are online, and roughly half engage in wireless Internet use.
Boomers are married empty nesters who are downsizing. Only 25 percent of boomers are married empty
nesters. Nearly 40 percent have children under the age of 18 living at home and many also have boomerang
children and live-in parents. Others are singles who are actively dating. In terms of housing, less than 10
percent of boomers plan to downsize in the next five years.
Boomers are all retiring early and wealthy. More than half of all boomers plan to work and/or volunteer
beyond their retirement age. One in six is on their "second career" and about the same percentage is engaged in
furthering their education. Although many will continue to work out of enjoyment, many also work due to
financial need, increases in retirement age, and so on. Only 10 percent of boomers make $150,000 or more a
year, and the net worth of the bottom 20 percent of boomers is a mere $2,480.

2. Name two products for which each of the three following demographic variables would be most
influential in determining consumption. If you could combine two of the three, which would be
the second demographic you would add to each? Justify your answer.
• Income
• Education
• Occupation
a) Income:
- Luxury cars: High-income earners are more likely to purchase luxury cars, which are expensive and often
seen as a status symbol
- Fine jewelry: High-income earners are also more likely to purchase fine jewelry, which is often seen as a
luxury item and a symbol of wealth
b) Education:
- Books: People with higher levels of education are more likely to read books, as they tend to have a greater
appreciation for literature and learning
- Artwork: People with higher levels of education are also more likely to purchase artwork, as they tend to
have a greater appreciation for aesthetics and culture 4.
c) Occupation:
- Work boots: People in manual labor jobs, such as construction workers, are more likely to purchase work
boots, which are designed to provide safety and comfort in physically demanding work environments
- Business suits: People in professional occupations, such as lawyers and bankers, are more likely to
purchase business suits, which are often seen as a symbol of professionalism and success .