COMMERCE 1MA3 Midterm Exam Latest
Complete Questions and 100% Correct
Answers (Top Score Assurance)
• What are the three factors affecting the firms micro environment? -✓✓Company,
competition, corporate partners
• Company (microenvironment) -✓✓The firm's capabilities
Focus efforts on satisfying customer needs that match their capabilities
Use SWOT to determine attractiveness of opportunity and then assess it relative to
firms competencies
• Competition (microenvironment) -✓✓Affects consumers because there is more choice,
influencing purchase decisions
Firms must understand competitors strengths, weaknesses, and reactions
• Corporate partners (microenvironment) -✓✓Parties that work with focal firm (suppliers,
manufacturers, makers, transport companies, dealerships, etc)
• What are the 6 factors affecting the firms macroenvironment? -✓✓CDSTEP - culture,
demographics, social/natural trends, technological advances, economic situation,
political/legal environment
• Culture (macroenvironment) -✓✓shared meanings, beliefs, morals, values, and
customs of a group of people
Family, heritage, workplace, country, town, etc.
• Country culture -✓✓Artifacts, behaviour, dress, symbols, physical settings,
ceremonies, language, colours, tastes, food preferences
• Regional Subcultures -✓✓The region in which people live in a particular country
affects the way they react to different cultural rituals, or even how they refer to a
particular product category
Ie. Quebec vs Ontario food
• Demographics (macro environment) -✓✓Characteristics of human population, used to
identify consumer markets
Ie. age, gender, race, income, ethnicity
• Generational cohort -✓✓A group of people of the same generation—typically have
similar purchase behaviors because they have shared experiences and are in the same
stage of life.
,• Baby boomers -✓✓1946-1964, 24%
Gravitate towards P+S that foster a casual lifestyle - maintain their youth, prioritize
leisure time, individualistic
• Generation X -✓✓1965-1980, 7%
More cynical, demand convenience, trust word of mouth advertising
• Generation Y -✓✓1981-1992, millennials, 12%
Skeptical about news from media, expect social responsibility from brands
• Generation Z -✓✓After 1993, digital natives
Social media ads, expect social justice
• Income -✓✓Upper class, middle class, working class, underclass
• Education -✓✓Higher levels of education lead to better jobs and higher incomes
• Gender -✓✓Income gap
Have been blurred
Marketing to gender
• Ethnicity -✓✓Indigenous population is 4.9% of total population
Growing immigrant population especially from China and South Asia
Challenge marketer to understand culture and value
• Technological advances (macroenvironment ) -✓✓Improve value of P+S, better
access to consumers
AI: firms experiencing with AI
Robotics: reduce costs of services
Internet of things: smart devices can combine data to help consumers and companies
• Economic situation (macroenvironment) -✓✓Monitor economic situation of country and
world
Affects the way consumers buy merch and spend money
• Inflation -✓✓Persistent increase in prices of G+S
Purchasing power of dollar declines
Expensive restaurants lose, inexpensive restaurants win
• Foreign currency fluctuations -✓✓changes in the value of a country's currency relative
to the currency of another country; can influence consumer spending
• Interest rates -✓✓The cost of borrowing money
, Low rates encourage big-ticket spending
• Recession -✓✓Period of economic downturn when economic growth of country is
negative for at least two consecutive quarters
Consumers alter spending patterns - look for best deals
• Political/legal environment -✓✓Political parties, government organizations, legislation
and laws promoting or inhibiting trade and marketing activities
Protect consumers
Can be positive or negative to firms
• Social and natural trends (macroenvironment) -✓✓Shape consumer values
Greater emphasis on sustainability, climate change, health and wellness, diversity, etc
17 global goals of sustainable development
• Green marketing -✓✓marketing efforts to produce, promote, and reclaim
environmentally sensitive products
More expensive
• Privacy concerns -✓✓digitization of personal data means your data is now easier to
reproduce, share, sell and access.
Hacking
• The time-poor society -✓✓Difficult to grab markets attention
Parents working, kids busy, skip advertisements
• Efficient distribution of food -✓✓Food defines social trends central to ppls lives and
environments
Major market in any economy
Reduce food waste
• Health and wellness concerns -✓✓Covid 19 causing increased vigilance
Obesity, high cholesterol, diabetes growing in children
• Marketing research -✓✓a set of techniques and principles for systematically collecting,
recording, analyzing, and interpreting data that can aid decision makers involved in
marketing goods, services, or ideas
• What are factors to consider before conducting marketing research? -✓✓Will it be
useful, is top management committed to the project and results, how big should it be
• Step 1 -✓✓Define research problem and objectives
Establish problem that needs to be solved
Most difficult step
Specify research question
Complete Questions and 100% Correct
Answers (Top Score Assurance)
• What are the three factors affecting the firms micro environment? -✓✓Company,
competition, corporate partners
• Company (microenvironment) -✓✓The firm's capabilities
Focus efforts on satisfying customer needs that match their capabilities
Use SWOT to determine attractiveness of opportunity and then assess it relative to
firms competencies
• Competition (microenvironment) -✓✓Affects consumers because there is more choice,
influencing purchase decisions
Firms must understand competitors strengths, weaknesses, and reactions
• Corporate partners (microenvironment) -✓✓Parties that work with focal firm (suppliers,
manufacturers, makers, transport companies, dealerships, etc)
• What are the 6 factors affecting the firms macroenvironment? -✓✓CDSTEP - culture,
demographics, social/natural trends, technological advances, economic situation,
political/legal environment
• Culture (macroenvironment) -✓✓shared meanings, beliefs, morals, values, and
customs of a group of people
Family, heritage, workplace, country, town, etc.
• Country culture -✓✓Artifacts, behaviour, dress, symbols, physical settings,
ceremonies, language, colours, tastes, food preferences
• Regional Subcultures -✓✓The region in which people live in a particular country
affects the way they react to different cultural rituals, or even how they refer to a
particular product category
Ie. Quebec vs Ontario food
• Demographics (macro environment) -✓✓Characteristics of human population, used to
identify consumer markets
Ie. age, gender, race, income, ethnicity
• Generational cohort -✓✓A group of people of the same generation—typically have
similar purchase behaviors because they have shared experiences and are in the same
stage of life.
,• Baby boomers -✓✓1946-1964, 24%
Gravitate towards P+S that foster a casual lifestyle - maintain their youth, prioritize
leisure time, individualistic
• Generation X -✓✓1965-1980, 7%
More cynical, demand convenience, trust word of mouth advertising
• Generation Y -✓✓1981-1992, millennials, 12%
Skeptical about news from media, expect social responsibility from brands
• Generation Z -✓✓After 1993, digital natives
Social media ads, expect social justice
• Income -✓✓Upper class, middle class, working class, underclass
• Education -✓✓Higher levels of education lead to better jobs and higher incomes
• Gender -✓✓Income gap
Have been blurred
Marketing to gender
• Ethnicity -✓✓Indigenous population is 4.9% of total population
Growing immigrant population especially from China and South Asia
Challenge marketer to understand culture and value
• Technological advances (macroenvironment ) -✓✓Improve value of P+S, better
access to consumers
AI: firms experiencing with AI
Robotics: reduce costs of services
Internet of things: smart devices can combine data to help consumers and companies
• Economic situation (macroenvironment) -✓✓Monitor economic situation of country and
world
Affects the way consumers buy merch and spend money
• Inflation -✓✓Persistent increase in prices of G+S
Purchasing power of dollar declines
Expensive restaurants lose, inexpensive restaurants win
• Foreign currency fluctuations -✓✓changes in the value of a country's currency relative
to the currency of another country; can influence consumer spending
• Interest rates -✓✓The cost of borrowing money
, Low rates encourage big-ticket spending
• Recession -✓✓Period of economic downturn when economic growth of country is
negative for at least two consecutive quarters
Consumers alter spending patterns - look for best deals
• Political/legal environment -✓✓Political parties, government organizations, legislation
and laws promoting or inhibiting trade and marketing activities
Protect consumers
Can be positive or negative to firms
• Social and natural trends (macroenvironment) -✓✓Shape consumer values
Greater emphasis on sustainability, climate change, health and wellness, diversity, etc
17 global goals of sustainable development
• Green marketing -✓✓marketing efforts to produce, promote, and reclaim
environmentally sensitive products
More expensive
• Privacy concerns -✓✓digitization of personal data means your data is now easier to
reproduce, share, sell and access.
Hacking
• The time-poor society -✓✓Difficult to grab markets attention
Parents working, kids busy, skip advertisements
• Efficient distribution of food -✓✓Food defines social trends central to ppls lives and
environments
Major market in any economy
Reduce food waste
• Health and wellness concerns -✓✓Covid 19 causing increased vigilance
Obesity, high cholesterol, diabetes growing in children
• Marketing research -✓✓a set of techniques and principles for systematically collecting,
recording, analyzing, and interpreting data that can aid decision makers involved in
marketing goods, services, or ideas
• What are factors to consider before conducting marketing research? -✓✓Will it be
useful, is top management committed to the project and results, how big should it be
• Step 1 -✓✓Define research problem and objectives
Establish problem that needs to be solved
Most difficult step
Specify research question
