Chap 004

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 ho are early adopters and diffusers
of information related to technology in terms of !!!!
A. "nternet usage.
#. technology onership.
C. cell phone usage.
D. a and $.
%. all of the a$ove.

&. 'hich of the folloing descri$e a population in terms of its si(e) distri$ution) and
structure*
A. geographics
#. psychographics
C. demographics
D. censographics
%. $ehaviorgraphics

+. ,arriett ants to descri$e the population of a ne mar-et in hich her firms ishes to
enter. She ants to descri$e the population in terms of its si(e) distri$ution) and structure.
'hich of the folloing should she use*
A. psychographics
#. $ehaviorgraphics
C. censographics
D. demographics
%. geographics

4. Age) gender) education) occupation) and income are e.amples of !!!!! varia$les.
A. demographic
#. holographic
C. geographic
D. psychographic
%. censographics

4-1
/. 'hat is the appro.imate population of the 0nited States today*
A. 100 million
#. &41 million
C. +01 million
D. +/0 million
%. 412 million

3. 'hich of the folloing is 45T a reason hy the population of the 0nited States has gron
steadily since 1130*
A. longer life e.pectancies
#. increasing $irth rate for most of the period $eteen 1130 and today
C. immigration
D. $a$y $oomers moving through child-$earing years
%. all of the a$ove are reasons hy the population of the 0nited States has gron

6. 'hich of the folloing is true regarding the si(e and distri$ution of the population of the
0nited States*
A. The population of the 0nited States is appro.imately &/0 million today.
#. The population has gron steadily since 1130 due $irth rates that have alays $een on the
increase.
C. The groth has not $een even throughout the 0nited States.
D. 7idest states) such as 7ichigan and "llinois) are e.pected to gro dramatically in the
ne.t ten years.
%. The population of the 0nited States has continued to decrease since 1130.

2. 'hich of the folloing is the most idely applied single cue e use to initially evaluate
and define individuals e meet*
A. age
#. income
C. occupation
D. gender
%. education

4-&
1. 'hich of the folloing is strongly associated ith occupation*
A. income
#. education
C. age
D. a and $
%. a) $) and c

10. Appro.imately hat percentage of the 0.S. population has a high school degree*
A. &/8
#. 408
C. /08
D. 6/8
%. 238

11. Appro.imately hat percentage of the 0.S. population has completed college*
A. &28
#. 4+8
C. /08
D. 6/8
%. 268

1&. 9uan is interested in -noing occupational influences on purchases of satellite radio
systems. 'hich of the folloing occupations are most li-ely to purchase this type of
product*
A. holesale and retail trade
#. professional) scientific and technical
C. mining and construction
D. a and c
%. all of the a$ove

4-+
1+. 'hich of the folloing statements regarding education is :A;S%*
A. %ducation is increasingly critical for a <family age< =o$.
#. Traditional high-paying manufacturing =o$s that re>uired relatively little education are
rapidly disappearing.
C. %ducation clearly drives income in today?s economy.
D. %ducation does not influence ho one thin-s) ma-es decisions) and relate to others.
%. %ducation has a strong influence on one?s tastes and preferences.

14. A household?s purchasing poer is a function of hich of the folloing*
A. income and accumulated ealth
#. age and gender
C. income and education
D. occupation and income
%. social class and education

1/. Appro.imately hat percent of American adults is functionally illiterate*
A. &08
#. 4+8
C. /8
D. 108
%. +08

13. Taitenger is a famous champagne ma-er in :rance. @art of this company?s mar-et research
of 0.S. consumers loo-ed at education levels of champagne consumers. 'hat education level
is the li-ely consumer of champagne to have attained*
A. did not graduate high school
#. graduated high school
C. attended college
D. graduated college
%. none of the a$ove

4-4
16. 'hat is the movement called in hich companies have e.panded opportunities for less
affluent consumers to afford lu.ury*
A. mass to class
#. class to mass
C. more to all
D. one for all
%. all for one

12. An estimate $y the consumer of ho much money he or she has availa$le to spend on
nonessentials is -non as !!!!!.
A. o$=ective discretionary income A5D"B
#. ad=usted gross income AAC"B
C. ad=usted discretionary income AAD"B
D. su$=ective discretionary income ASD"B
%. su$=ective gross income ASC"B

11. The 7artin?s household income is D1&+)000 per year. ,oever) this family estimates that
they have D4/)000 availa$le to spend on nonessentials such as vacations and entertainment.
The D4/)000 represents the 7artin?s !!!!!.
D. su$=ective discretionary income ASD"B

&0. 'hich of the folloing statements regarding age is true*
A. @roper age positioning is critical for many products.
#. Age affects a consumer?s self-concept and lifestyle.
C. 5ur age shapes the media e use.
D. Analy(ing age cohort groups or generations often provides more meaningful segments and
mar-eting strategies than merely loo-ing at census age groups.
%. all of the a$ove

4-/
&1. 'hich age category is e.pected to e.perience the largest percentage increase $eteen
&010 and &0&0*
A. E 10
#. &0-&1
C. 40-41
D. 30-31
%. F 31

&&. @rocter G Cam$le is a ma=or consumer pac-aged goods manufacturer. 'hich age
category provides the greatest opportunity for @GC in terms of groth $eteen &010 and
&0&0*
A. E 10
#. &0-&1
C. 40-41
D. 30-31
%. F 31

&+. 5ne?s perceived age) a part of one?s self-concept) is -non as !!!!!.
A. felt age
#. real age
C. cognitive age
D. perceptual age
%. chronological age

&4. Certrude is 1+ years old) $ut she perceives herself to $e a$out 3/ years old. Si.ty-five is
Certrude?s !!!!! age.
A. felt age
#. real age
C. cognitive age
D. perceptual age

4-3
&/. 'hich of the folloing varia$les is associated ith cognitive age*
A. health
#. education
C. income
D. social support
%. all of the a$ove

&3. Sam is a healthy 6/ year old man. ,e is a retired attorney) has a su$stantial retirement
income) and is a mem$er of several social groups that travel) help others) and encourage life-
long learning. 'hich of the folloing is most li-ely true a$out Sam*
A. Sam?s cognitive age is less than 6/.
#. Sam?s cognitive age is 6/.
C. Sam?s cognitive age is greater than 6/.
D. Sam?s cognitive age is /0.
%. Sam?s cognitive age is 2/.

&6. AAnB !!!!! is a group of persons ho have e.perienced a common social) political)
historical) and economic environment.
A. census age group
#. age cohort
C. cognitive group
D. chronological group
%. demographic group

&2. !!!!! is the process of descri$ing and e.plaining the attitudes) values) and $ehaviors of
an age group as ell as predicting its future attitudes) values) and $ehaviors.
A. Census analysis
#. Demographic analysis
C. Ceneration analysis
D. Cognitive analysis
%. Cohort analysis

4-6
&1. 7aria is analy(ing the $a$y $oom generation $y descri$ing and e.plaining their attitudes)
values) and $ehaviors as ell as predicting its future) attitudes) values) and $ehaviors. 7aria is
conducting a !!!!! analysis.
A. cohort
#. generational
C. demographic
D. census
%. cognitive

+0. !!!!! deals ith the mature mar-et and is $ased on the theory that people change their
outloo- on life hen they e.perience ma=or life events such as $ecoming a grandparent)
retiring) losing a spouse) or developing chronic health conditions.
A. Demographics
#. Cerontographics
C. Cognitive psychology
D. Cohort analysis
%. Cenerational analysis

+1. "ndividuals $orn $efore 11+0 $elong to hich generation*
A. pre-Depression generation
#. Depression generation
C. $a$y $oom generation
D. Ceneration H
%. Ceneration I

+&. ,arold as $orn in 11&+. ,e entered young adulthood during 'orld 'ar "") and served in
the 4avy during that ar. ,e has itnessed radical social) economic) and technological
change in his lifetime. To hich generation does he $elong*
D. Ceneration H
%. Ceneration I

4-2
++. Consumers // years of age and over constitute the !!!!! mar-et.
A. $a$y $oom
#. mature
C. generational
D. gerontological
%. aging

+4. %lsie and her to sisters are all in their mid- to late-si.ties. They are part of the !!!!!
mar-et.
A. $oom
#. mature
C. generational
D. gerontological
%. aging

+/. 'hich generation is 45T part of the mature mar-et*
A. pre-Depression
#. Depression
C. Ceneration H
D. $a$y $oom
%. all of the a$ove are part of the mature mar-et

+3. 'hich of the folloing is a segmentation approach to the mature mar-et that incorporates
aging processes and life events related to the physical health and mental outloo- of older
consumers*
A. Cerontographics
#. Cognitive psychology
C. Demographics
D. Ageographics
%. Censographics

4-1
+6. 'hich cohort as $orn $eteen 11+0 and 114/*
D. Ceneration H
%. Ceneration I

+2. Havier as $orn in 1140. ,e as too young to remem$er 'orld 'ar "") and he matured
during the prosperous years of the 11/0s and early 1130s. ,is favorite singer as) and still is)
%lvis @resley. To hich generation does he $elong*
D. Ceneration H
%. Ceneration I

+1. 'hich generation <invented< roc- and roll and gre up ith music and television as
important parts of their lives*
D. Ceneration H
%. Ceneration I

40. 'hich of the folloing is a segment of mature consumers*
A. ,ealthy "ndulgers
#. Ailing 5utgoers
C. ,ealthy ,ermits
D. :rail Jecluses
%. all of the a$ove

4-10
41. 'hich of the folloing is 45T a segment of mature consumers*
#. Ailing "ndulgers
C. Ailing 5utgoers
D. :rail Jecluses
%. ,ealthy ,ermits

4&. 'hich segment of mature consumers is mentally and physically active) $oth spouses are
generally still alive) has prepared for retirement $oth financially and psychologically) is
$asically content and set to en=oy life) has traded don to a smaller home) li-es convenience)
personal service) and high-tech home appliances) and is a strong mar-et for travel*
#. Ailing "ndulgers
C. Ailing 5utgoers
D. :rail Jecluses
%. ,ealthy ,ermits

4+. 'illie and ,arriet) married for over +0 years) are $oth in their late 30s and are healthy and
physically active. They have prepared for retirement $oth financially and psychologically)
have sold their large five $edroom home for a smaller to $edroom condominium) and ta-e
group vacations tice a year. To hich segment of mature consumers ould 'illie and
,arriet $elong*
#. Ailing "ndulgers
C. Ailing 5utgoers
D. :rail Jecluses
%. ,ealthy ,ermits

4-11
44. !!!!! have e.perienced health pro$lems hich limit their physical a$ilities and
fre>uently their financial capa$ility. This segment is also a -ey mar-et for retirement
communities and assisted-living housing. 'hile seniors in this group ac-noledge their
limits) they also maintain a positive self-esteem and see- to get the most out of life.
"ndependence and sociali(ing are important as is remaining stylish in their dress.
A. ,ealthy ,ermits
#. Ailing "ndulgers
C. Ailing 5utgoers
D. :rail Jecluses
%. ,ealthy Jecluses

4/. #ar$ara is a great grandmother ith a fe health pro$lems that re>uire her to live in
assisted-living housing. ,oever) she does not let her physical and economic limitations
affect her self-esteem. She remains independent) sociali(es in several seniors? groups) and still
li-es to remain stylish in her dress. #ar$ara ould $e classified as aAnB !!!!!.
A. ,ealthy ,ermit
#. Ailing 5utgoer
C. Ailing ,ermit
D. :rail Jecluse
%. ,ealthy "ndulger

43. @eople in this group retain their physical health) $ut life events Ai.e.) death of a spouseB
have reduced their self-concept. They have reacted $y $ecoming ithdran) and many resent
the isolation and the feeling that they are e.pected to act li-e old people. They prefer clothing
styles that are popular ith other seniors and ill pay a premium for ell--non $rands.
They tend to stay in homes in hich they raised their families) and they are an important part
of the do-it-yourself mar-et. 'hich segment is this*
#. Ailing 5utgoers
C. ,ealthy ,ermits
D. :rail Jecluses
%. Ailing "ndulgers

4-1&
46. 9ames is a idoer in good health that lives in the home he and his ife raised their five
children. ,oever) he has reacted to his ife?s death $y $ecoming ithdran and feels
isolated. ,e spends much of his time fi.ing up his house. 9ames is $est descri$ed as aAnB
!!!!!.
A. ,ealthy "ndulger
#. Ailing 5utgoer
C. ,ealthy ,ermit
D. :rail Jecluse
%. Ailing ,ermit

42. This segment of mature consumers has accepted their old-age status and have ad=usted
their lifestyles to reflect physical reduced capa$ilities and social roles. They focus on
$ecoming spiritually stronger) tend to stay at home) and are a ma=or mar-et for health care
products. ;ocational convenience is often a critical factor for this group. 'hich group is this*
A. ,ealthy "ndulger
#. Ailing 5utgoer
C. ,ealthy ,ermit
D. :rail Jecluse
%. Ailing ,ermit

41. 7yrtle has accepted her old-age status and has ad=usted her lifestyle to reflect her reduced
physical capa$ilities and social role. She focuses on $ecoming spiritually stronger and tends
to stay at home. 'hich segment $est descri$es 7yrtle*
A. ,ealthy "ndulger
#. Ailing 5utgoer
C. ,ealthy ,ermit
D. :rail Jecluse
%. Ailing ,ermit

/0. :or hich group of mature consumers is a convenient location of their physician most
important*
A. ,ealthy "ndulger
#. Ailing 5utgoer
C. ,ealthy ,ermit
D. :rail Jecluse
%. Ailing ,ermit

4-1+
/1. 'hich generation refers to those individuals $orn during the dramatic increase of $irths
Ai.e.) almost 20 million $a$y $irthsB $eteen the end of 'orld 'ar "" and 1134*
D. Ceneration H
%. Ceneration I

/&. 9ohn as $orn in 11//) and he has only -non prosperity in his lifetime. ,e remem$ers
hen @resident Kennedy as assassinated) primarily $ecause his family purchased their first
color television not long after that event. 'hile he remem$ers the Lietnam 'ar) he as too
young to $e drafted. To hich generation does he $elong*
D. Ceneration H
%. Ceneration I

/+. 'hich generation is considered to $e more self-centered) individualistic) economically
optimistic) s-eptical) suspicious of authority) and focused on the present than other
generations*
D. Ceneration H
%. Ceneration I

/4. Jo$ert and his ife) 9an) ere $oth $orn in the 11/0s. The last of their three children ill
graduate from college soon) hich is leaving them ith increased discretionary income and
time. To hich generation do Jo$ert and 9an $elong*
D. Ceneration H
%. Ceneration I

4-14
//. 'hich of the folloing is a reason hy more $a$y $oomers continue to or- longer than
previous generations*
A. necessary due to a lo income of some $a$y $oomers
#. necessary due to a poor pension plan
C. due to changes in Social Security increasing the age at hich full $enefits can $e dran
D. increased desire to stay active in interesting and rearding careers
%. all of the a$ove

/3. 'hich generation as $orn $eteen 113/ and 1163*
D. Ceneration H
%. Ceneration I

/6. 4ic- as $orn in 116&. As long as he can remem$er) his mother or-ed outside the home.
'hen he as 1&) his parents divorced) hich as hard on him) $ut the same thing happened
to several of his friends. 'hen $oth of his parents remarried) his vie of a family changed to
include all of his step-sisters and $rothers. To hich generation does he $elong*
D. Ceneration H
%. Ceneration I

/2. Ceneration H is also referred to as the !!!!! generation.
A. $a$y $ust
#. $a$y $oomlet
C. mini $a$y $oom
D. echo $oom
%. $oomerang

4-1/
/1. 'hich generation as the first to gain a very $road vie of a family) hich may include
parents) si$lings) stepparents) half-si$lings) close friends) live-in lovers) and others*
A. Depression generation
#. $a$y $oom generation
C. Ceneration H
D. Ceneration I
%. 7illennials

30. Joger is an adult that has moved $ac- in ith his parents. ,e doesn?t $elieve in sacrificing
time) energy) and relations to the e.tent he sees older or-ers do for the sa-e of career or
economic advancement. ,e has a master?s degree $ut does not ant to or- for a large
corporation. To hich generation does Joger most li-ely $elong*
D. Ceneration H
%. Ceneration I

31. "ndividuals $orn $eteen 1166 and 1114 $elong to hich generation*
A. $a$y $oom
#. Ceneration H
C. Ceneration I
D. Ceneration M
%. 7illennial generation

4-13
3&. Amie as $orn in 1111. ,er mother is a college professor) and her father is an attorney.
She?s not sure hat she ants to do hen she gros up) $ut she -nos she ill go to college
and em$ar- on a career of her on. She as ama(ed hen her grandmother told her that
omen really couldn?t do that hen she as young. "f a oman did or-) choices ere
usually limited to $ecoming a teacher) a secretary) or a nurse. ,er grandmother told her that
she as a secretary) $ut after she started having children) she left the or-force and stayed
home to raise her children) hich as common for most omen at that time. That concept
as totally foreign to Amie. To hich generation does she $elong*
A. $a$y $oom
#. Ceneration H
C. Ceneration I
D. Ceneration M

3+. The children of the original $a$y $oomers are -non as !!!!!.
A. the $a$y $ust generation
#. Ceneration H
C. Ceneration I
D. Ceneration M
%. the 7illennial generation

34. Ceneration I is sometimes referred to as the !!!!!.
A. $a$y $ust generation
#. echo $oom
C. $oomerangs
D. $a$y $oomlet
%. step-$oomers

3/. @lacing ads in videogames is -non as !!!!!.
A. video advertising
#. integrated advertising
C. advergaming
D. message integration
%. entertainment integration

4-16
33. The neest generation $orn after 1114 is referred to as !!!!!.
A. the $a$y $oom generation
#. Ceneration H
C. Ceneration I
D. Ceneration M
%. Teens

36. %rin is 1& years old. 'hile la$el is appropriate for %rin*
A. little -id
#. $ig -id
C. teen
D. teenager
%. young adult

32. 5ne?s position relative to others on one or more dimensions valued $y society is -non as
one?s !!!!!.
A. societal ran-
#. social status
C. social standing
D. social sphere
%. social realm

31. A hierarchical division of a society into relatively distinct and homogeneous groups ith
respect to attitudes) values) and lifestyles is -non as a !!!!!.
A. social stratum
#. social class system
C. caste system
D. social continuum
%. societal ran-ing

4-12
60. The more consistent an individual is on all status dimensions) the greater the degree of
!!!!! for the individual.
A. status maturity
#. status permanence
C. status infle.i$ility
D. status crystalli(ation
%. status fle.i$ility

61. Carl is a physician earning D&00)000 per year. 0sing the Coleman-Jainater system)
identify the social class to hich Carl $elongs
A. upper-upper
#. loer-upper
C. upper-middle
D. middle
%. or-ing

6&. 'hich term descri$es consumers? purchase and use of automo$iles) homes) yachts)
clothes) and so forth primarily to demonstrate their great ealth*
A. conspicuous consumption
#. outrageous consumption
C. o$no.ious consumption
D. nouveau. consumption
%. <$lue $lood< consumption

6+. 4ouveau. riche is most commonly associated ith the !!!!!.
A. upper-middle class
#. middle class
C. loer-upper class
D. upper-upper class

4-11
64. The upper-middle class achieve their social position primarily !!!!!.
A. through their unusually high incomes
#. $y their occupation and career orientation
C. through inherited position
D. through their children?s accomplishments

6/. 'hich social class consists of s-illed and semis-illed factory) service) and sales or-ers*
A. upper-middle
#. middle class
C. or-ing class
D. upper-loer class
%. loer-loer class

63. #u(( is a self-employed construction or-er. ,e is proud of his a$ility to do <real or-<
and sees himself as the often-unappreciated $ac-$one of America. ,e disli-es the upper-
middle class and prefers products and stores positioned toard his social-class level. 'hich
term $est descri$es #u((*
A. or-ing-class stiff
#. <$lue $lood< class
C. hite collar or-er
D. or-ing-class aristocrat
%. no-collar or-er

66. 'hich social class consists of individuals ho are poorly educated) have very lo
incomes) and or- as uns-illed la$orers*
A. loer-loer class
#. upper-loer class
C. or-ing class
D. loer-middle class
%. middle class

4-&0
62. %arl did not complete high school and or-s as a =anitor at to =o$s. ,is income is very
lo) and he does not possess any s-ills to help him get a $etter paying =o$. 'hich social class
$est descri$es %arl*
A. loer-loer class
#. upper-loer class
C. or-ing class
%. middle class

61. 'hich social class has lo incomes and minimal education) may $e unemployed for long
periods of time) and is the ma=or recipient of government support and services provided $y
non-profit organi(ations*
A. loer-loer class
#. upper-loer class
C. or-ing class
%. middle class

20. 'hat to $asic approaches are used to measure social status*
A. primary and secondary measures
#. single-item and multi-item inde.es
C. position and status measures
D. income and occupation inde.es
%. income and education measures

21. 'hich of the folloing is 45T a common single-item inde. of social class*
A. education
#. occupation
C. income
D. age
%. all of the a$ove are common single-item inde.es of social class

4-&1
2&. "n the ,ollingshead "nde. of Social @osition) hich is true*
A. occupation is given a higher eight than education
#. occupation is given the same eight as education
C. income is given a higher eight than occupation
D. occupation is given a loer eight than education
%. income is given a loer eight than education

True / False Questions

2+. Demographics descri$e a population in terms of its si(e) distri$ution) and structure.
True :alse

24. %ducation is pro$a$ly the most idely applied single cue e use to initially evaluate and
define individuals e meet.
True :alse

2/. 5ver /0 percent of Americans have completed college.
True :alse

23. %ducation provides a complete e.planation for consumption patterns.
True :alse

26. "ncome ena$les purchases $ut does not generally cause or e.plain them.
True :alse

22. Ad=usted gross income AAC"B is an estimate $y the consumer of ho much money he or
she has availa$le to spend on nonessentials.
True :alse

4-&&
21. Cerontographics is one segmentation approach to the mature mar-et that incorporates
aging processes and life events to the physical health and mental outloo- of older consumers.
True :alse

10. The Depression generation is composed of those individuals $orn $efore 11+0.
True :alse

11. #a$y $oomers are characteri(ed $y high education levels) high incomes) and dual-career
households.
True :alse

1&. The $a$y $oom generation is the first American generation to seriously confront the issue
of <reduced e.pectations.<
True :alse

1+. The children of the original $a$y $oomers) generation I $orn $eteen 1166 and 1114) are
sometimes referred to as the <$a$y $ust< generation.
True :alse

14. The neest generation $orn after 1114 is -non as the 7illennials.
True :alse

1/. 7any upper-upper class consumers e.hi$it <conspicuous consumption.<
True :alse

13. The ,ollingshead "nde. of Social @osition A"S@B is $ased on four socioeconomic factors:
occupation) source of income) house type) and delling area.
True :alse

4-&+
16. The ,ollingshead "nde. of Social @osition A"S@B ta-es into consideration the rapid
e.pansion of the role of omen.
True :alse

ssay Questions

12. Define the term <demographics)< e.plain hy it is important to understand demographics
in mar-eting) and discuss the ma=or demographic varia$les of interest to mar-eters.

11. 4ame and $riefly descri$e the si. generations discussed in this chapter.

100. Iou =ust started your first mar-eting =o$) and your supervisor ants you to $ecome more
-noledgea$le of the mature mar-et $ecause she sees this mar-et as a groing opportunity.
4ame and descri$e the four segments of the mature mar-et that have $een identified through
gerontographics.

4-&4
101. Define the term <social class system< and list the social classes relevant in the 0nited
States.

10&. Discuss the to $asic approaches to measuring social status.

4-&/
Chapter 04 The Changing American Society: Demographics and Social
Stratification Anser Key

Multiple Choice Questions

1. (p. 115) Digital Savvy consumers are leading edge digital users ho are early adopters and
diffusers of information related to technology in terms of !!!!
A. "nternet usage.
#. technology onership.
C. cell phone usage.
D. a and $.
! all of the a$ove.

Difficulty: easy

&. (p. 116) 'hich of the folloing descri$e a population in terms of its si(e) distri$ution) and
structure*
A. geographics
#. psychographics
C! demographics
D. censographics
%. $ehaviorgraphics

Difficulty: easy

+. (p. 116) ,arriett ants to descri$e the population of a ne mar-et in hich her firms ishes
to enter. She ants to descri$e the population in terms of its si(e) distri$ution) and structure.
'hich of the folloing should she use*
A. psychographics
#. $ehaviorgraphics
C. censographics
D! demographics
%. geographics

Difficulty: moderate

4-&3
4. (p. 116-124) Age) gender) education) occupation) and income are e.amples of !!!!! varia$les.
A! demographic
#. holographic
C. geographic
D. psychographic
%. censographics

Difficulty: easy

/. (p. 117) 'hat is the appro.imate population of the 0nited States today*
A. 100 million
#. &41 million
C! +01 million
D. +/0 million
%. 412 million


3. (p. 117) 'hich of the folloing is 45T a reason hy the population of the 0nited States has
gron steadily since 1130*
A. longer life e.pectancies
"! increasing $irth rate for most of the period $eteen 1130 and today
C. immigration
D. $a$y $oomers moving through child-$earing years
%. all of the a$ove are reasons hy the population of the 0nited States has gron

Difficulty: hard

4-&6
6. (p. 117) 'hich of the folloing is true regarding the si(e and distri$ution of the population of
the 0nited States*
A. The population of the 0nited States is appro.imately &/0 million today.
#. The population has gron steadily since 1130 due $irth rates that have alays $een on the
increase.
C! The groth has not $een even throughout the 0nited States.
D. 7idest states) such as 7ichigan and "llinois) are e.pected to gro dramatically in the
ne.t ten years.
%. The population of the 0nited States has continued to decrease since 1130.


2. (p. 117) 'hich of the folloing is the most idely applied single cue e use to initially
evaluate and define individuals e meet*
A. age
#. income
C! occupation
D. gender
%. education


1. (p. 117) 'hich of the folloing is strongly associated ith occupation*
A. income
#. education
C. age
D! a and $
%. a) $) and c


4-&2
10. (p. 117) Appro.imately hat percentage of the 0.S. population has a high school degree*
A. &/8
#. 408
C. /08
D. 6/8
! 238

Difficulty: hard

11. (p. 117) Appro.imately hat percentage of the 0.S. population has completed college*
A! &28
#. 4+8
C. /08
D. 6/8
%. 268

Difficulty: hard

1&. (p. 119) 9uan is interested in -noing occupational influences on purchases of satellite radio
systems. 'hich of the folloing occupations are most li-ely to purchase this type of
product*
A. holesale and retail trade
"! professional) scientific and technical
C. mining and construction
D. a and c
%. all of the a$ove

Difficulty: hard

4-&1
1+. (p. 117 and 119) 'hich of the folloing statements regarding education is :A;S%*
A. %ducation is increasingly critical for a <family age< =o$.
#. Traditional high-paying manufacturing =o$s that re>uired relatively little education are
rapidly disappearing.
C. %ducation clearly drives income in today?s economy.
D! %ducation does not influence ho one thin-s) ma-es decisions) and relate to others.
%. %ducation has a strong influence on one?s tastes and preferences.

Difficulty: hard

14. (p. 119) A household?s purchasing poer is a function of hich of the folloing*
A! income and accumulated ealth
#. age and gender
C. income and education
D. occupation and income
%. social class and education


1/. (p. 12) Appro.imately hat percent of American adults is functionally illiterate*
A! &08
#. 4+8
C. /8
D. 108
%. +08

Difficulty: hard

4-+0
13. (p. 121) Taitenger is a famous champagne ma-er in :rance. @art of this company?s mar-et
research of 0.S. consumers loo-ed at education levels of champagne consumers. 'hat
education level is the li-ely consumer of champagne to have attained*
A. did not graduate high school
#. graduated high school
C. attended college
D! graduated college


16. (p. 121) 'hat is the movement called in hich companies have e.panded opportunities for
less affluent consumers to afford lu.ury*
A. mass to class
"! class to mass
C. more to all
D. one for all
%. all for one


12. (p. 122) An estimate $y the consumer of ho much money he or she has availa$le to spend
on nonessentials is -non as !!!!!.
D! su$=ective discretionary income ASD"B


4-+1
11. (p. 122) The 7artin?s household income is D1&+)000 per year. ,oever) this family estimates
that they have D4/)000 availa$le to spend on nonessentials such as vacations and
entertainment. The D4/)000 represents the 7artin?s !!!!!.
D! su$=ective discretionary income ASD"B


&0. (p. 122-124) 'hich of the folloing statements regarding age is true*
A. @roper age positioning is critical for many products.
#. Age affects a consumer?s self-concept and lifestyle.
C. 5ur age shapes the media e use.
D. Analy(ing age cohort groups or generations often provides more meaningful segments and
mar-eting strategies than merely loo-ing at census age groups.
! all of the a$ove

Difficulty: easy

&1. (p. 12!) 'hich age category is e.pected to e.perience the largest percentage increase
$eteen &010 and &0&0*
A. E 10
#. &0-&1
C. 40-41
D! 30-31
%. F 31


4-+&
&&. (p. 12!) @rocter G Cam$le is a ma=or consumer pac-aged goods manufacturer. 'hich age
category provides the greatest opportunity for @GC in terms of groth $eteen &010 and
&0&0*
A. E 10
#. &0-&1
C. 40-41
D! 30-31
%. F 31


&+. (p. 124) 5ne?s perceived age) a part of one?s self-concept) is -non as !!!!!.
A. felt age
#. real age
C! cognitive age
D. perceptual age


&4. (p. 124) Certrude is 1+ years old) $ut she perceives herself to $e a$out 3/ years old. Si.ty-
five is Certrude?s !!!!! age.
A. felt age
#. real age
C! cognitive age
D. perceptual age


4-++
&/. (p. 124) 'hich of the folloing varia$les is associated ith cognitive age*
A. health
#. education
C. income
D. social support
! all of the a$ove

Difficulty: easy

&3. (p. 124) Sam is a healthy 6/ year old man. ,e is a retired attorney) has a su$stantial
retirement income) and is a mem$er of several social groups that travel) help others) and
encourage life-long learning. 'hich of the folloing is most li-ely true a$out Sam*
A! Sam?s cognitive age is less than 6/.
#. Sam?s cognitive age is 6/.
C. Sam?s cognitive age is greater than 6/.
D. Sam?s cognitive age is /0.
%. Sam?s cognitive age is 2/.


&6. (p. 124) AAnB !!!!! is a group of persons ho have e.perienced a common social) political)
historical) and economic environment.
A. census age group
"! age cohort
C. cognitive group
D. chronological group
%. demographic group


4-+4
&2. (p. 124) !!!!! is the process of descri$ing and e.plaining the attitudes) values) and
$ehaviors of an age group as ell as predicting its future attitudes) values) and $ehaviors.
A. Census analysis
#. Demographic analysis
C. Ceneration analysis
D. Cognitive analysis
! Cohort analysis


&1. (p. 124) 7aria is analy(ing the $a$y $oom generation $y descri$ing and e.plaining their
attitudes) values) and $ehaviors as ell as predicting its future) attitudes) values) and
$ehaviors. 7aria is conducting a !!!!! analysis.
A! cohort
#. generational
C. demographic
D. census
%. cognitive


+0. (p. 125) !!!!! deals ith the mature mar-et and is $ased on the theory that people change
their outloo- on life hen they e.perience ma=or life events such as $ecoming a grandparent)
retiring) losing a spouse) or developing chronic health conditions.
A. Demographics
"! Cerontographics
C. Cognitive psychology
D. Cohort analysis
%. Cenerational analysis


4-+/
+1. (p. 125) "ndividuals $orn $efore 11+0 $elong to hich generation*
A! pre-Depression generation
D. Ceneration H
%. Ceneration I


+&. (p. 125) ,arold as $orn in 11&+. ,e entered young adulthood during 'orld 'ar "") and
served in the 4avy during that ar. ,e has itnessed radical social) economic) and
technological change in his lifetime. To hich generation does he $elong*
A! pre-Depression generation
D. Ceneration H
%. Ceneration I


++. (p. 125) Consumers // years of age and over constitute the !!!!! mar-et.
A. $a$y $oom
"! mature
C. generational
D. gerontological
%. aging

Difficulty: easy

4-+3
+4. (p. 125) %lsie and her to sisters are all in their mid- to late-si.ties. They are part of the
!!!!! mar-et.
A. $oom
"! mature
C. generational
D. gerontological
%. aging


+/. (p. 125) 'hich generation is 45T part of the mature mar-et*
A. pre-Depression
#. Depression
C! Ceneration H
D. $a$y $oom
%. all of the a$ove are part of the mature mar-et


+3. (p. 125) 'hich of the folloing is a segmentation approach to the mature mar-et that
incorporates aging processes and life events related to the physical health and mental outloo-
of older consumers*
A! Cerontographics
#. Cognitive psychology
C. Demographics
D. Ageographics
%. Censographics


4-+6
+6. (p. 125-126) 'hich cohort as $orn $eteen 11+0 and 114/*
"! Depression generation
D. Ceneration H
%. Ceneration I


+2. (p. 125-127) Havier as $orn in 1140. ,e as too young to remem$er 'orld 'ar "") and he
matured during the prosperous years of the 11/0s and early 1130s. ,is favorite singer as)
and still is) %lvis @resley. To hich generation does he $elong*
D. Ceneration H
%. Ceneration I


+1. (p. 125-127) 'hich generation <invented< roc- and roll and gre up ith music and television
as important parts of their lives*
D. Ceneration H
%. Ceneration I


4-+2
40. (p. 126) 'hich of the folloing is a segment of mature consumers*
#. Ailing 5utgoers
C. ,ealthy ,ermits
D. :rail Jecluses
! all of the a$ove

Difficulty: easy

41. (p. 126) 'hich of the folloing is 45T a segment of mature consumers*
"! Ailing "ndulgers
C. Ailing 5utgoers
D. :rail Jecluses
%. ,ealthy ,ermits


4&. (p. 126) 'hich segment of mature consumers is mentally and physically active) $oth spouses
are generally still alive) has prepared for retirement $oth financially and psychologically) is
$asically content and set to en=oy life) has traded don to a smaller home) li-es convenience)
personal service) and high-tech home appliances) and is a strong mar-et for travel*
A! ,ealthy "ndulgers
#. Ailing "ndulgers
C. Ailing 5utgoers
D. :rail Jecluses
%. ,ealthy ,ermits


4-+1
4+. (p. 126) 'illie and ,arriet) married for over +0 years) are $oth in their late 30s and are
healthy and physically active. They have prepared for retirement $oth financially and
psychologically) have sold their large five $edroom home for a smaller to $edroom
condominium) and ta-e group vacations tice a year. To hich segment of mature consumers
ould 'illie and ,arriet $elong*
A! ,ealthy "ndulgers
#. Ailing "ndulgers
C. Ailing 5utgoers
D. :rail Jecluses
%. ,ealthy ,ermits


44. (p. 126) !!!!! have e.perienced health pro$lems hich limit their physical a$ilities and
fre>uently their financial capa$ility. This segment is also a -ey mar-et for retirement
communities and assisted-living housing. 'hile seniors in this group ac-noledge their
limits) they also maintain a positive self-esteem and see- to get the most out of life.
"ndependence and sociali(ing are important as is remaining stylish in their dress.
A. ,ealthy ,ermits
#. Ailing "ndulgers
C! Ailing 5utgoers
D. :rail Jecluses
%. ,ealthy Jecluses


4/. (p. 126) #ar$ara is a great grandmother ith a fe health pro$lems that re>uire her to live in
assisted-living housing. ,oever) she does not let her physical and economic limitations
affect her self-esteem. She remains independent) sociali(es in several seniors? groups) and still
li-es to remain stylish in her dress. #ar$ara ould $e classified as aAnB !!!!!.
A. ,ealthy ,ermit
"! Ailing 5utgoer
C. Ailing ,ermit
D. :rail Jecluse
%. ,ealthy "ndulger


4-40
43. (p. 126) @eople in this group retain their physical health) $ut life events Ai.e.) death of a
spouseB have reduced their self-concept. They have reacted $y $ecoming ithdran) and
many resent the isolation and the feeling that they are e.pected to act li-e old people. They
prefer clothing styles that are popular ith other seniors and ill pay a premium for ell-
-non $rands. They tend to stay in homes in hich they raised their families) and they are an
important part of the do-it-yourself mar-et. 'hich segment is this*
#. Ailing 5utgoers
C! ,ealthy ,ermits
D. :rail Jecluses
%. Ailing "ndulgers


46. (p. 126) 9ames is a idoer in good health that lives in the home he and his ife raised their
five children. ,oever) he has reacted to his ife?s death $y $ecoming ithdran and feels
isolated. ,e spends much of his time fi.ing up his house. 9ames is $est descri$ed as aAnB
!!!!!.
A. ,ealthy "ndulger
#. Ailing 5utgoer
C! ,ealthy ,ermit
D. :rail Jecluse
%. Ailing ,ermit


42. (p. 126-127) This segment of mature consumers has accepted their old-age status and have
ad=usted their lifestyles to reflect physical reduced capa$ilities and social roles. They focus on
$ecoming spiritually stronger) tend to stay at home) and are a ma=or mar-et for health care
products. ;ocational convenience is often a critical factor for this group. 'hich group is this*
A. ,ealthy "ndulger
#. Ailing 5utgoer
C. ,ealthy ,ermit
D! :rail Jecluse
%. Ailing ,ermit


4-41
41. (p. 126-127) 7yrtle has accepted her old-age status and has ad=usted her lifestyle to reflect her
reduced physical capa$ilities and social role. She focuses on $ecoming spiritually stronger
and tends to stay at home. 'hich segment $est descri$es 7yrtle*
A. ,ealthy "ndulger
#. Ailing 5utgoer
C. ,ealthy ,ermit
D! :rail Jecluse
%. Ailing ,ermit


/0. (p. 126-127) :or hich group of mature consumers is a convenient location of their physician
most important*
A. ,ealthy "ndulger
#. Ailing 5utgoer
C. ,ealthy ,ermit
D! :rail Jecluse
%. Ailing ,ermit


/1. (p. 127-129) 'hich generation refers to those individuals $orn during the dramatic increase of
$irths Ai.e.) almost 20 million $a$y $irthsB $eteen the end of 'orld 'ar "" and 1134*
C! $a$y $oom generation
D. Ceneration H
%. Ceneration I

Difficulty: easy

4-4&
/&. (p. 127-129) 9ohn as $orn in 11//) and he has only -non prosperity in his lifetime. ,e
remem$ers hen @resident Kennedy as assassinated) primarily $ecause his family
purchased their first color television not long after that event. 'hile he remem$ers the
Lietnam 'ar) he as too young to $e drafted. To hich generation does he $elong*
D. Ceneration H
%. Ceneration I


/+. (p. 127-129) 'hich generation is considered to $e more self-centered) individualistic)
economically optimistic) s-eptical) suspicious of authority) and focused on the present than
other generations*
D. Ceneration H
%. Ceneration I


/4. (p. 127-129) Jo$ert and his ife) 9an) ere $oth $orn in the 11/0s. The last of their three
children ill graduate from college soon) hich is leaving them ith increased discretionary
income and time. To hich generation do Jo$ert and 9an $elong*
D. Ceneration H
%. Ceneration I


4-4+
//. (p. 129) 'hich of the folloing is a reason hy more $a$y $oomers continue to or- longer
than previous generations*
A. necessary due to a lo income of some $a$y $oomers
#. necessary due to a poor pension plan
C. due to changes in Social Security increasing the age at hich full $enefits can $e dran
D. increased desire to stay active in interesting and rearding careers
! all of the a$ove

Difficulty: easy

/3. (p. 129-1!2) 'hich generation as $orn $eteen 113/ and 1163*
D! Ceneration H
%. Ceneration I


/6. (p. 129-1!2) 4ic- as $orn in 116&. As long as he can remem$er) his mother or-ed outside
the home. 'hen he as 1&) his parents divorced) hich as hard on him) $ut the same thing
happened to several of his friends. 'hen $oth of his parents remarried) his vie of a family
changed to include all of his step-sisters and $rothers. To hich generation does he $elong*
D! Ceneration H
%. Ceneration I


4-44
/2. (p. 129-1!2) Ceneration H is also referred to as the !!!!! generation.
A! $a$y $ust
#. $a$y $oomlet
C. mini $a$y $oom
D. echo $oom
%. $oomerang


/1. (p. 129-1!2) 'hich generation as the first to gain a very $road vie of a family) hich may
include parents) si$lings) stepparents) half-si$lings) close friends) live-in lovers) and others*
A. Depression generation
#. $a$y $oom generation
C! Ceneration H
D. Ceneration I
%. 7illennials


30. (p. 129-1!2) Joger is an adult that has moved $ac- in ith his parents. ,e doesn?t $elieve in
sacrificing time) energy) and relations to the e.tent he sees older or-ers do for the sa-e of
career or economic advancement. ,e has a master?s degree $ut does not ant to or- for a
large corporation. To hich generation does Joger most li-ely $elong*
D! Ceneration H
%. Ceneration I


4-4/
31. (p. 1!2-1!5) "ndividuals $orn $eteen 1166 and 1114 $elong to hich generation*
A. $a$y $oom
#. Ceneration H
C! Ceneration I
D. Ceneration M


3&. (p. 1!2-1!5) Amie as $orn in 1111. ,er mother is a college professor) and her father is an
attorney. She?s not sure hat she ants to do hen she gros up) $ut she -nos she ill go to
college and em$ar- on a career of her on. She as ama(ed hen her grandmother told her
that omen really couldn?t do that hen she as young. "f a oman did or-) choices ere
usually limited to $ecoming a teacher) a secretary) or a nurse. ,er grandmother told her that
she as a secretary) $ut after she started having children) she left the or-force and stayed
home to raise her children) hich as common for most omen at that time. That concept
as totally foreign to Amie. To hich generation does she $elong*
A. $a$y $oom
#. Ceneration H
C! Ceneration I
D. Ceneration M


3+. (p. 1!2-1!5) The children of the original $a$y $oomers are -non as !!!!!.
A. the $a$y $ust generation
#. Ceneration H
C! Ceneration I
D. Ceneration M
%. the 7illennial generation


4-43
34. (p. 1!2) Ceneration I is sometimes referred to as the !!!!!.
A. $a$y $ust generation
"! echo $oom
C. $oomerangs
D. $a$y $oomlet
%. step-$oomers


3/. (p. 1!!) @lacing ads in videogames is -non as !!!!!.
A. video advertising
#. integrated advertising
C! advergaming
D. message integration
%. entertainment integration


33. (p. 1!5) The neest generation $orn after 1114 is referred to as !!!!!.
A. the $a$y $oom generation
#. Ceneration H
C. Ceneration I
D. Ceneration M
! Teens


36. (p. 1!5) %rin is 1& years old. 'hile la$el is appropriate for %rin*
A. little -id
#. $ig -id
C! teen
D. teenager
%. young adult


4-46
32. (p. 1!5) 5ne?s position relative to others on one or more dimensions valued $y society is
-non as one?s !!!!!.
A! societal ran-
#. social status
C. social standing
D. social sphere
%. social realm


31. (p. 1!6) A hierarchical division of a society into relatively distinct and homogeneous groups
ith respect to attitudes) values) and lifestyles is -non as a !!!!!.
A. social stratum
"! social class system
C. caste system
D. social continuum
%. societal ran-ing


60. (p. 1!6) The more consistent an individual is on all status dimensions) the greater the degree
of !!!!! for the individual.
A. status maturity
#. status permanence
C. status infle.i$ility
D! status crystalli(ation
%. status fle.i$ility

Difficulty: hard

4-42
61. (p. 1!7) Carl is a physician earning D&00)000 per year. 0sing the Coleman-Jainater
system) identify the social class to hich Carl $elongs
A. upper-upper
#. loer-upper
C! upper-middle
D. middle
%. or-ing


6&. (p. 1!") 'hich term descri$es consumers? purchase and use of automo$iles) homes) yachts)
clothes) and so forth primarily to demonstrate their great ealth*
A! conspicuous consumption
#. outrageous consumption
C. o$no.ious consumption
D. nouveau. consumption
%. <$lue $lood< consumption

Difficulty: easy

6+. (p. 1!") 4ouveau. riche is most commonly associated ith the !!!!!.
A. upper-middle class
#. middle class
C! loer-upper class
D. upper-upper class


64. (p. 1!"-1!9) The upper-middle class achieve their social position primarily !!!!!.
A. through their unusually high incomes
"! $y their occupation and career orientation
C. through inherited position
D. through their children?s accomplishments

Difficulty: hard

4-41
6/. (p. 14-141) 'hich social class consists of s-illed and semis-illed factory) service) and sales
or-ers*
A. upper-middle
#. middle class
C! or-ing class
D. upper-loer class
%. loer-loer class


63. (p. 141) #u(( is a self-employed construction or-er. ,e is proud of his a$ility to do <real
or-< and sees himself as the often-unappreciated $ac-$one of America. ,e disli-es the
upper-middle class and prefers products and stores positioned toard his social-class level.
'hich term $est descri$es #u((*
A. or-ing-class stiff
#. <$lue $lood< class
C. hite collar or-er
D! or-ing-class aristocrat
%. no-collar or-er

Difficulty: hard

66. (p. 141) 'hich social class consists of individuals ho are poorly educated) have very lo
incomes) and or- as uns-illed la$orers*
A. loer-loer class
"! upper-loer class
C. or-ing class
%. middle class


4-/0
62. (p. 141-142) %arl did not complete high school and or-s as a =anitor at to =o$s. ,is income
is very lo) and he does not possess any s-ills to help him get a $etter paying =o$. 'hich
social class $est descri$es %arl*
A. loer-loer class
"! upper-loer class
C. or-ing class
%. middle class


61. (p. 14!) 'hich social class has lo incomes and minimal education) may $e unemployed for
long periods of time) and is the ma=or recipient of government support and services provided
$y non-profit organi(ations*
A! loer-loer class
#. upper-loer class
C. or-ing class
%. middle class


20. (p. 14!) 'hat to $asic approaches are used to measure social status*
A. primary and secondary measures
"! single-item and multi-item inde.es
C. position and status measures
D. income and occupation inde.es
%. income and education measures


4-/1
21. (p. 14!) 'hich of the folloing is 45T a common single-item inde. of social class*
A. education
#. occupation
C. income
D! age
%. all of the a$ove are common single-item inde.es of social class

Difficulty: hard

2&. (p. 144) "n the ,ollingshead "nde. of Social @osition) hich is true*
A! occupation is given a higher eight than education
#. occupation is given the same eight as education
C. income is given a higher eight than occupation
D. occupation is given a loer eight than education
%. income is given a loer eight than education

Difficulty: hard

True / False Questions

2+. (p. 116) Demographics descri$e a population in terms of its si(e) distri$ution) and structure.
T#$

Difficulty: easy

24. (p. 117) %ducation is pro$a$ly the most idely applied single cue e use to initially evaluate
and define individuals e meet.
FA%S


4-/&
2/. (p. 117) 5ver /0 percent of Americans have completed college.
FA%S


23. (p. 117-119) %ducation provides a complete e.planation for consumption patterns.
FA%S

Difficulty: easy

26. (p. 122) "ncome ena$les purchases $ut does not generally cause or e.plain them.
T#$


22. (p. 122) Ad=usted gross income AAC"B is an estimate $y the consumer of ho much money
he or she has availa$le to spend on nonessentials.
FA%S


21. (p. 125) Cerontographics is one segmentation approach to the mature mar-et that
incorporates aging processes and life events to the physical health and mental outloo- of older
consumers.
T#$


10. (p. 125) The Depression generation is composed of those individuals $orn $efore 11+0.
FA%S


4-/+
11. (p. 12") #a$y $oomers are characteri(ed $y high education levels) high incomes) and dual-
career households.
T#$

Difficulty: easy

1&. (p. 1!) The $a$y $oom generation is the first American generation to seriously confront the
issue of <reduced e.pectations.<
FA%S

Difficulty: hard

1+. (p. 1!2) The children of the original $a$y $oomers) generation I $orn $eteen 1166 and
1114) are sometimes referred to as the <$a$y $ust< generation.
FA%S


14. (p. 1!5) The neest generation $orn after 1114 is -non as the 7illennials.
T#$

Difficulty: easy

1/. (p. 1!") 7any upper-upper class consumers e.hi$it <conspicuous consumption.<
FA%S


13. (p. 144-145) The ,ollingshead "nde. of Social @osition A"S@B is $ased on four socioeconomic
factors: occupation) source of income) house type) and delling area.
FA%S

Difficulty: hard

4-/4
16. (p. 145) The ,ollingshead "nde. of Social @osition A"S@B ta-es into consideration the rapid
e.pansion of the role of omen.
FA%S

Difficulty: easy

ssay Questions

12. (p. 116-124) Define the term <demographics)< e.plain hy it is important to understand
demographics in mar-eting) and discuss the ma=or demographic varia$les of interest to
mar-eters.
Demographics descri$e a population in terms of its si(e) distri$ution) and structure.
Demographics influence consumption $ehaviors $oth directly and $y affecting other
attri$utes of individuals) such as their personal values and decision styles. 7ar-eters
fre>uently segment mar-ets on the $asis of demographics and use that information to select
appropriate media and develop effective promotional themes. &opulation si'e and
distri(ution are important to understand) and regions of the country serve as important
su$cultures hose mem$ers have uni>ue tastes and preferences. )ccupation is pro$a$ly the
most idely applied single cue e use to initially evaluate and define individuals e meet)
and it influences all aspects of the consumption process. ducation is another demographic
varia$le of interest to mar-eters $ecause it influences hat one can purchase $y partially
determining one?s income and occupation and has a strong influence on one?s tastes and
preferences. *ncome ena$les purchases $ut does not generally cause or e.plain them. Thus)
income is generally more effective as a segmentation varia$le hen used in con=unction ith
other demographic varia$les. :inally) age positioning is critical for many products. Age
influences the consumption of many products. 'hile age groups as defined $y the census are
often a useful ay to understand and segment a mar-et) analy(ing age cohort groups or
generations ill often provide more meaningful segments and mar-eting strategies.


4-//
11. (p. 1 25-1!5) 4ame and $riefly descri$e the si. generations discussed in this chapter.
&re+Depression ,eneration--composed of those individuals $orn $efore 11+0. These
individuals gre up in traumatic times and have itnessed radical social) economic) and
technological changes. As a group) they are conservative and concerned ith financial and
personal security.
Depression ,eneration++cohort $orn $eteen 11+0 and 114/. They ere small children
during the Depression and 'orld 'ar "" and matured during the prosperous years of the
11/0s and early 30s. 7ost have or ill soon retire and have accumulated su$stantial ealth.
7any are still in e.cellent health and are an important target segment for the travel industry.
"a(y "oom ,eneration++$orn during the dramatic increase of $irths $eteen the end of
'orld 'ar "" and 1134. 7ost of this group gre up during the prosperous 11/0s and 1130s.
They are considered to $e more self-centered) individualistic) economically optimistic)
s-eptical) suspicious of authority) and focused on the present than other generations. They are
characteri(ed $y high education levels) high incomes) and dual-career households.
,eneration -++often referred to as the $a$y $ust generation and as $orn $eteen 113/ and
1163. "t is smaller than the $a$y $oom generation and reached adulthood during difficult
economic times. They have a $road vie of family and is the first generation to seriously
confront the issue of <reduced e.pectations.< This generation is more highly educated than
previous generations and tends to $lame the $a$y $oom generation for the difficult future they
see for themselves.
,eneration .++children of the original $a$y $oomers and ere $orn $eteen 1166 and 1114.
They are sometimes referred to as the <echo $oom.< 5verall) it is the first generation to gro
up ith virtually full-employment opportunities for omen) ith dual-income households the
standard) and a ide array of family types seen as normal. This generation is characteri(ed $y
a strong sense of independence and autonomy and is assertive) self-reliant) emotionally and
intellectually e.pressive) innovative) and curious.
T/eens--$orn after 1114. They ill li-ely continue trends in increased education) diversity)
and technology usage. The oldest of this group) no in the so-called <teen< years A2-14B
have many of the same characteristics as the teens of Ceneration I.

Difficulty: hard

4-/3
100. (p. 126-127) Iou =ust started your first mar-eting =o$) and your supervisor ants you to
$ecome more -noledgea$le of the mature mar-et $ecause she sees this mar-et as a groing
opportunity. 4ame and descri$e the four segments of the mature mar-et that have $een
identified through gerontographics.
0ealthy *ndulgers--This segment is physically and mentally healthy) has the most in
common ith the $a$y $oomers than any other segment) and ill increasingly $e composed
of $a$y $oomers as they age. #oth spouses are generally still alive) and they have prepared
for retirement $oth financially and psychologically. They are content and set to en=oy life and
often sell their large family homes and move into smaller dellings. They li-e activities)
convenience) personal service) and high-tech home appliances and are a strong part of the
mar-et for cruises and group travel.
Ailing )utgoers++They have e.perienced health pro$lems hich limit their physical a$ilities
and fre>uently their financial capa$ility. They are a -ey mar-et for retirement communities
and assisted-living housing. They ac-noledge their limits) maintain positive self-esteem) and
see- to get the most out of life. "ndependence and sociali(ing are important as is remaining
stylish in their dress. ;imited funds and physical a$ility are issues. Lalue pricing and
discounts are vieed positively as are ease and convenience.
0ealthy 0ermits++These individuals retain their physical health) $ut life events Ai.e.) death of
a spouseB have reduced their self-concept and have caused them to $ecome ithdran. 7any
resent the isolation and the feeling that they are e.pected to act li-e old people) and they do
not ant to stand out. They prefer clothing styles that are popular ith other seniors and ill
pay a premium for ell--non $rands. They tend to stay in the homes in hich they raised
their families and are an important part of the do-it-yourself mar-et.
Frail #ecluses++They have accepted their old-age status and have ad=usted their lifestyles to
reflect reduced physical capa$ilities and social roles. They focus on $ecoming spiritually
stronger and tend to stay at home. They are a ma=or mar-et for health care products) home
e.ercise and health testing e>uipment) and emergency response systems. ;ocational
convenience is a critical factor for this group.

Difficulty: hard

4-/6
101. (p. 1!6) Define the term <social class system< and list the social classes relevant in the
0nited States.
Social class system is defined as a hierarchical division of a society into relatively distinct and
homogeneous groups ith respect to attitudes) values) and lifestyles. The social structure in
the 0nited States is composed of: 0pper Americans Aupper-upper) loer-upper) and upper-
middle classB) 7iddle Americans Amiddle class and or-ing classB) and ;oer Americans
Aupper-loer and loer-loerB.

Difficulty: easy

10&. (p. 14!-145) Discuss the to $asic approaches to measuring social status.
The to $asic approaches to measuring social status: a single-item inde. and a multi-item
inde.. Single+item inde1es estimate social status on the $asis of a single dimension. The three
most common single-item inde.es are education) occupation) and income. Jesearchers have
developed multi+item inde1es to measure social class. The ,ollingshead "nde. of Social
@osition A"S@B is a to-item inde. that is ell developed and idely used and is developed
using an occupation scale and an education scale.

Difficulty: hard

4-/2

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

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