COMMERCE 1MA3: MIDTERM EXAM REVIEW | QUESTIONS AND
ANSWERS | 2026 UPDATE | 100% CORRECT
What do companies use to analyze their marketing environment? - ANSWER-A
framework
What is at the heart of the marketing environment analysis? - ANSWER-The
consumer
What are the factors affecting consumers' microenviornment? - ANSWER-The
company (i.e. its capabilities), its competition, and its corporate partners
What can marketers use to analyze their external environment? - ANSWER-
SWOT analysis (strengths, weaknesses, opportunities, threats)
Greater competition in a market means.... - ANSWER-more choices for the
consumers, which influences their buying decisions
What is a corporate partner? - ANSWER-Parties that work with the focal firm (i.e.
automobile manufacturers collaborate with suppliers of sheet metal, tire
manufacturers, component part makers, unions, transport companies, and
dealerships)
What are the macroeconomic factors marketers must understand? - ANSWER-
Culture, demographics, social/natural, technology, economic, and political/legal
What is culture? - ANSWER-The shared meanings, beliefs, morals, values, and
customs of a group of people
1
,What are demographics? - ANSWER-The characteristics of human populations
and segments
i.e. age, gender, income, race, and ethnicity
What is a generational cohort? - ANSWER-A group of people of the same
generation
What are the different generational cohorts? - ANSWER-Baby boomers (born
between 1946 and 1964)
Generation X (born between 1965 and 1980)
Generation Y (born between 1981 and 1992)
Generation Z
(born after 1993)
What generational cohort was born into a world that was already full of electronic
gadgets and digital technologies? - ANSWER-Generation Z
What generational cohort uses social media ads as the biggest influence on their
purchase behavior? - ANSWER-Generation Z
What is an expectation of generation Z? - ANSWER-Social justice; demands that
brands take action and give back
What generational cohort represent over 4.6 million Canadians? - ANSWER-
Generation Y
What generational cohort grew up in a more media-intensive and brand-conscious
era than their parents? - ANSWER-Generation Y
2
,What generational cohort is more skeptical about what they hear in the media,
making marketing more challenging? - ANSWER-Generation Y
What generational cohort believe the sell is "too hard", they won't buy and they
expect social responsibility from brands? - ANSWER-Generation Y
What generation represents more than 2.8 million (7%) Canadians? - ANSWER-
Generation X
What generational cohort is the first generation of latchkey kids (kids who grew up
in home in which both parents worked)? - ANSWER-Generation X
What generational cohort has 50% divorced parents? - ANSWER-Generation X
What generational cohort grew up in times of economic recession, more likely to
carry higher debt loads, travel the world and move far away from their parents? -
ANSWER-Generation X
Why does generation X possess considerable spending power? - ANSWER-
Because they tended to wait to get married and buy houses later in life
What generational cohort are less interested in shopping, more cynical, demand
convenience, and tend to be less likely to believe advertising claims? - ANSWER-
Generation X
What generational cohort require word-of-mouth advertising from people they
know and trust? - ANSWER-Generation X
3
, What generational cohort represents 24% of Canadians? - ANSWER-Baby
boomers
Which generational cohort are individualistic, make leisure time a high priority,
believe that they will always be able to take care of themselves, and have an
obsession with maintaining their youth? - ANSWER-Baby boomers
What are the factors of income? - ANSWER-Background, education, occupations:
upper class, middle class, working class, and underclass
What class is very affluent and their spending patterns are not influenced by
economic conditions? - ANSWER-Upper-class
What class is likely to be highly educated and work in managerial and executive
roles? - ANSWER-Upper-class
What percentage of Canadian households are in the upper-class? - ANSWER-10%
What class can afford a good life most of the time, tend to be careful about their
spending, and are often very conscious? - ANSWER-Middle-class
What percentage of Canadian households fall into the middle-class? - ANSWER-
38%
What percentage of the Canadian households fall into working-class (or low-
income)? - ANSWER-14.2%
What do studies show higher levels of education lead to? - ANSWER-Better jobs
and higher incomes
4
ANSWERS | 2026 UPDATE | 100% CORRECT
What do companies use to analyze their marketing environment? - ANSWER-A
framework
What is at the heart of the marketing environment analysis? - ANSWER-The
consumer
What are the factors affecting consumers' microenviornment? - ANSWER-The
company (i.e. its capabilities), its competition, and its corporate partners
What can marketers use to analyze their external environment? - ANSWER-
SWOT analysis (strengths, weaknesses, opportunities, threats)
Greater competition in a market means.... - ANSWER-more choices for the
consumers, which influences their buying decisions
What is a corporate partner? - ANSWER-Parties that work with the focal firm (i.e.
automobile manufacturers collaborate with suppliers of sheet metal, tire
manufacturers, component part makers, unions, transport companies, and
dealerships)
What are the macroeconomic factors marketers must understand? - ANSWER-
Culture, demographics, social/natural, technology, economic, and political/legal
What is culture? - ANSWER-The shared meanings, beliefs, morals, values, and
customs of a group of people
1
,What are demographics? - ANSWER-The characteristics of human populations
and segments
i.e. age, gender, income, race, and ethnicity
What is a generational cohort? - ANSWER-A group of people of the same
generation
What are the different generational cohorts? - ANSWER-Baby boomers (born
between 1946 and 1964)
Generation X (born between 1965 and 1980)
Generation Y (born between 1981 and 1992)
Generation Z
(born after 1993)
What generational cohort was born into a world that was already full of electronic
gadgets and digital technologies? - ANSWER-Generation Z
What generational cohort uses social media ads as the biggest influence on their
purchase behavior? - ANSWER-Generation Z
What is an expectation of generation Z? - ANSWER-Social justice; demands that
brands take action and give back
What generational cohort represent over 4.6 million Canadians? - ANSWER-
Generation Y
What generational cohort grew up in a more media-intensive and brand-conscious
era than their parents? - ANSWER-Generation Y
2
,What generational cohort is more skeptical about what they hear in the media,
making marketing more challenging? - ANSWER-Generation Y
What generational cohort believe the sell is "too hard", they won't buy and they
expect social responsibility from brands? - ANSWER-Generation Y
What generation represents more than 2.8 million (7%) Canadians? - ANSWER-
Generation X
What generational cohort is the first generation of latchkey kids (kids who grew up
in home in which both parents worked)? - ANSWER-Generation X
What generational cohort has 50% divorced parents? - ANSWER-Generation X
What generational cohort grew up in times of economic recession, more likely to
carry higher debt loads, travel the world and move far away from their parents? -
ANSWER-Generation X
Why does generation X possess considerable spending power? - ANSWER-
Because they tended to wait to get married and buy houses later in life
What generational cohort are less interested in shopping, more cynical, demand
convenience, and tend to be less likely to believe advertising claims? - ANSWER-
Generation X
What generational cohort require word-of-mouth advertising from people they
know and trust? - ANSWER-Generation X
3
, What generational cohort represents 24% of Canadians? - ANSWER-Baby
boomers
Which generational cohort are individualistic, make leisure time a high priority,
believe that they will always be able to take care of themselves, and have an
obsession with maintaining their youth? - ANSWER-Baby boomers
What are the factors of income? - ANSWER-Background, education, occupations:
upper class, middle class, working class, and underclass
What class is very affluent and their spending patterns are not influenced by
economic conditions? - ANSWER-Upper-class
What class is likely to be highly educated and work in managerial and executive
roles? - ANSWER-Upper-class
What percentage of Canadian households are in the upper-class? - ANSWER-10%
What class can afford a good life most of the time, tend to be careful about their
spending, and are often very conscious? - ANSWER-Middle-class
What percentage of Canadian households fall into the middle-class? - ANSWER-
38%
What percentage of the Canadian households fall into working-class (or low-
income)? - ANSWER-14.2%
What do studies show higher levels of education lead to? - ANSWER-Better jobs
and higher incomes
4
