TEST BANK

Principles of Marketing

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Principles of Marketing

Chapter 8
Test Bank Questions
Marketing in a Diverse Marketplace

Multiple Choice Questions

1. What internal variables are most important when a business is considering whether to
follow an adaptation strategy or a standardization strategy in meeting customers’
expectations?
A. Marketing, sales, operations, customer services, finance, and human resources
management*
B. Databases, IT, and length of time in the marketplace
C. Size of market, political factors, legal factors, and competitors
D. Simplicity of strategy, low cost, greater appeal, and culture
Solution: A. These strategies must balance the capabilities of the organization’s internal
business activities.
Section 8.1 LO 1 Moderate 3-4 minutes
2. What is the primary difference between a standardization strategy and an adaptation
strategy when offering products to the marketplace?
A. Adaptation strategies adjust to the market automatically.
B. Standardization strategies keep the product lineup and target market the same.
C. One strategy keeps all marketing efforts the same, and the other shifts strategies to
reach specific markets.*
D. Neither is an effective marketing strategy to reach diverse markets.
Solution: C. A standardization strategy applies identical guidelines. An adaptation strategy
typically involves two steps. The first is identifying the modifications required to increase an
offering’s appeal among a targeted audience. The second is implementing the changes based
on the organization’s abilities and resources.
Section 8.1 LO 2 Moderate 3-4 minutes
3. What is it called when a company decides to modify its products to specific needs, tastes, or
expectations to meet expectations of different groups of consumers?
A. Standardization
B. Alteration
C. Assimilation
D. Adaptation*
Solution: D. In marketing, an adaptation strategy translates into tailoring the marketing mix—
product, price, place, and promotion—to suit the preferences of targeted populations.
Section 8.1 LO 3 Easy 1-2 minutes

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4. When McDonald’s decides to market its Filet-O-Fish sandwich as the Shrimp Filet-O in
Japan, McDonald’s is pursuing a(n) _______ strategy.
A. complex marketing
B. cost-saving
C. accommodation behavior
D. adaptation*
Solution: D. McDonald’s is a good example of a company that adapts its marketing mix to be
locally relevant to diverse global consumers.
Section 8.1 LO 3 Easy 1-2 minutes
5. Some companies have elected to incorporate identity-specific consumers who are often
ignored into their marketing strategies. What is this strategic approach called?
A. Complex marketing
B. Variety-seeking marketing
C. Diversity marketing*
D. Culturally unresponsive marketing
Solution: C. Diversity marketing is a strategic approach that involves identifying diverse
subsegments of the population within a market and creating intentional marketing efforts to
reach wider audiences.
Section 8.2 LO 1 Easy 1-2 minutes
6. There are five key parameters most often used to describe diversity markets—cultural,
racial, and ethnic; gender and sexual identity; generational; religion; and _______.
A. disability*
B. demographic
C. millennial
D. lifestyle
Solution: A. Consumers with disabilities are a key diversity market—although they often are
ignored.
Section 8.2 LO 1 Moderate 3-5 minutes
7. What effort is vital in identifying consumers’ cultural and social differences in order to reach
and serve audiences effectively?
A. Self-identification
B. Video cameras located in retail stores
C. Secret shopping
D. Research*
Solution: D. Research provides the information needed to better understand people’s cultural or
social differences. This is useful for companies to avoid wrong assumptions and avert public
mishaps.
Section 8.2 LO 2 Easy 1-2 minutes

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8. Which of the following is a reason consumers appreciate and reward companies that
practice diversity marketing?
A. Diversity marketing reduces costs for consumers.
B. Diversity marketing validates individuals’ importance in the market.*
C. Diversity marketing shows a commitment to standardizing marketing efforts.
D. Diversity marketing makes it easier to find products.
Solution: B. From a consumer standpoint, the application of diversity and inclusion measures in
a company’s marketing practices shows a universal recognition and appreciation for people.
Section 8.2 LO 2 Moderate 3-4 minutes
9. What group is the largest multicultural population in the United States and one of the
youngest and fastest growing?
A. Black people
B. Asian people
C. Baby Boomers
D. Hispanic people*
Solution: D. The Hispanic population is the largest multicultural group in the nation and consists
of more than 63 million individuals, or 19 percent of the total population.
Section 8.2 LO 3 Easy 1-2 minutes
10. Sociodemographic marketing includes underrepresented and overlooked consumers in a
large population. Sociodemographic marketing is a subcategory of _______ marketing.
A. safety
B. diversity*
C. esteem
D. self-actualization
Solution: B. Sociodemographic marketing is a subcategory of diversity marketing.
Section 8.2 LO 3 Easy 1-2 minutes
11. _______ is fostered through community socialization. The outcome of these shared
learnings leads to the continued growth of a group’s identity and its idiosyncrasies.
A. Attitude
B. Belief
C. Perception
D. Culture*
Solution: D. Culture refers to the social norms, beliefs, behaviors, and accomplishments that
characterize a particular set of individuals. Culture also encompasses shared customs, arts,
language, foods, and knowledge.
Section 8.3 LO 1 Easy 3-4 minutes

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12. Mark has just secured his first post-college apartment. He shops at IKEA to furnish it
because his funds are limited. In the congested entry of his new apartment, Mark adds a
small quilt his grandmother made for him. This _______ is a tangible part of his culture.
A. artifact*
B. value
C. heritage
D. social norm
Solution: A. A quilt is an artifact that is tangible and external.
Section 8.3 LO 2 Easy 3-4 minutes
13. Culture may be expressed in many ways. One of the main expressions that marketers must
consider when deciding on the message for a particular audience is _______.
A. language*
B. purchase decision-makers
C. attitudes
D. collectivism
Solution: A. Like symbols, language is an important part of culture. Language communicates
personal identity. It also shapes how people perceive the world around them.
Section 8.3 LO 2 Easy 1-2 minutes
14. Why do the messages in many ads in the United States relate to achievement, product
performance, and functionality?
A. Consumers purchase products that are functional.
B. American society in general is masculine oriented.*
C. Most consumers don’t care about quality of life and relationships when purchasing
products.
D. Buyers want certainty and safety in their purchases.
Solution: B. Gender can strongly impact the creative concept and messaging behind marketing
promotions, ads, and social media. American society in general is masculine oriented.
Section 8.4 LO 3 Easy 1-2 minutes
15. Research studies show Hispanic, Black, and Asian consumers overall are more optimistic
than non-Hispanic White consumers. When asked about their financial outlook,
multicultural consumers were twice as positive as non-Hispanic White consumers about
achieving economic success in their lifetime. With these insights in mind, what might a
strategic marketer emphasize in multicultural marketing campaigns?
A. Product cost and functionality
B. Power, strength, and winning
C. Individuals at work
D. Confidence, hope, and teamwork*
Solution: D. These insights suggest that expressions of culture and elements like confidence,
hope, and teamwork are crucial for implementing multicultural marketing campaigns.
Section 8.4 LO 3 Difficult 5-6 minutes

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16. As always, marketers must research and understand the demographics, cultures, identities,
and group characteristics if they are to be successful in reaching multicultural consumers.
That is because a plurality nation requires _______ interactions.
A. static
B. single-language
C. dynamic*
D. classified
Solution: C. It is important to recognize that demographic elements are not static. These
elements are dynamic and interact with one another.
Section 8.4 LO 4 Easy 1-2 minutes
17. Sociodemographic variables enable marketers to adapt _______ to be more effective for
both businesses and consumers.
A. products, services, and messaging*
B. prices, packaging, and labels
C. locations, signage, and parking
D. psychological positioning
Solution: A. Sociodemographic marketing also enables marketers to adapt products, services,
and messaging to be more effective for both businesses and underrepresented communities.
Section 8.5 LO 1 Moderate 3-4 minutes
18. What is driving the growth of the LGBTQIA+ population that marketers should be aware of?
A. More effective campaigns
B. Greater confidence and societal acceptance*
C. More products specifically developed for the community
D. Less sense of belonging
Solution: B. For marketers, focusing on the societal experience around belonging (acceptance,
welcoming, support, and inclusion) is key for reaching the growing number of LGBTQIA+
consumers.
Section 8.5 LO 2 Moderate 3-4 minutes
19. If ethics are contextual and marketers must recognize that values and behaviors vary by
culture, identity, and other demographic variables, how can marketers discover these
variances?
A. Research*
B. Hearsay
C. Internal records
D. Competitors
Solution: A. To succeed in a diverse marketplace, research must extend deeper into values.
Research should be ethically based on target segments’ cultural sensitivities and social issues.
Section 8.6 LO 1 Easy 1-2 minutes

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20. These days, marketers know representation matters for a growing number of consumers.
While attempting to be inclusive in diversity marketing, what must marketers steer clear of?
E. Balance
F. Symbolism
G. Tokenism*
H. Associations
Solution: C. Tokenism happens when an individual from either a minority group or an
underrepresented community is included in ads or marketing communications only to prevent
criticism.
Section 8.6 LO 2 Easy 1-2 minutes

Short Answer Questions

Note: Responses to open-ended questions will vary. The sample answers provide some
elements or themes that a student might consider.
1. As an example of adaptive strategy, IKEA’s team of ethnographers conduct research into
domestic life in regions of the world. IKEA then produces 72 different region-specific
editions of its catalog. Sometimes, however, adaptation strategies go too far. For instance,
IKEA’s 2012 Saudi Arabia edition of the catalog removed photos of girls and women from its
pages. Briefly explain why the Swedish company apologized for this ethical lapse even
though IKEA was attempting to be culturally sensitive.
[Solution: IKEA says removing photos of women and girls breached its own Swedish culture and
values.]
Section 8.1 LO 1 and Section 8.6 LO 2 Difficult 5-7 minutes
2. Market analysis shows that high diversity scores for brands translates into an 83 percent
higher preference by consumers. Besides this score showing improvement in brand
sentiment, what are two additional ways companies practicing diversity marketing can
benefit from utilizing this strategy?
[Solution: Besides improving brand sentiment overall, studies show that companies that build
emotional ties through diversity marketing programs, generate more revenue, and increase
stock price performance.]
Section 8.2 LO 2 Moderate 4-5 minutes
3. Why would wealth advising firms target Generation Z—currently the lowest-earning
generational group in the United States?
[Solution: There are 67 million members of the Gen Z population, the second largest
generation, and they are poised to enter their income-earning years. Because wealth is
generated over time and enhanced by investments, many financial advisors want to begin those
investment habits with young clients.]
Section 8.5 LO 3 Difficult 7-9 minutes

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