Chapter 3

What is precycling?

An effort by manufacturers to avoid creating waste in the production process

Match the components of competition to the correct example.

Barriers to Entry-Potential competitors find it difficult to recreate the wide distribution that Western Union has for its money transfer services. Power of buyers-It is easy and inexpensive for customers to switch to a different grocery store. Power of suppliers-There is only a single producer for a vital component in a cell phone. Existing rivalries- Airlines offer discounts for making reservations early or charge penalties for canceling reservations.

The best known self-regulatory group is the ______.

Better Business Bureau

________ is a movement to increase the influence, power, and rights of consumers in dealing with institutions.

Consumerism

The ________ might issue a cease and desist order or require corrective advertising as a response to deceptive business practices.

FTC

Select all that apply Which two of the following are the broad categories that should be considered when analyzing the economic component in an environmental scan?

Macroeconomic conditions, Consumer income

Select all that apply When scanning the environment for trends, a company typically gathers information from five sources. Select three of those sources from the following list.

Regulatory, Economic, Social

Though the ________ did not explicitly make the practice of price fixing illegal, courts have subsequently relied on it to find it to be so.

Sherman Act

Demographic characteristics and the culture of a population are the basis for ________ forces.

Social

More and more companies rely on consumers to act as brand advocates among their peers. This trend relates to which environmental force?

Social

Match each type of environmental force with an example of it.

Social-Increasing expectation for companies to be transparent and authentic, Technological-The Fourth Industrial Revolution, Competitive-Increase in creating ongoing relationships with customers to outperform rivals, Regulatory-Increasing political pressure for social media platforms to deter fraud and "fake" news

Advertising and promotion are regulated by which governmental body?

The Federal Trade Commission

Select all that apply Which two laws forbid monopolies or other actions that cause restraint in trade?

The Sherman Antitrust Act, The Clayton Act

Consumerism can be described as ______.

a movement to increase the power and rights of consumers in dealing with institutions

Self-regulation can be described as ______.

an alternative to government control in which industry attempts to police itself

Critics of this form of competition suggest that because there are few sellers, price competition among firms is not desirable because it leads to reduced profits for all producers.

an oligopoly

An example of ________, is the elimination of passwords based on facial or fingerprint recognition.

authentication technology

The Sherman Antitrust Act and the Clayton Act were passed to encourage ______.

competition

Which environmental force refers to the alternative firms that could provide a product to satisfy a specific market's needs?

competition

When marketers shift their focus from single transactions to creating ongoing relationships through high-engagement, experiential, customer journeys it is an example of a ______.

competitive force

To do a thorough environmental scan, a marketer must consider both current and potential ________ in designing a marketing strategy.

competitors

Gross, disposable, and discretionary are three components related to ______.

consumer income

What social force incorporates the set of values, ideas, and attitudes that are learned and shared among the members of a group?

culture

Social forces include _________ characteristics of the population and its culture.

demographic

Which component of an environmental scan pertains to the income, expenditures, and resources affecting the cost of running a business or household?

economy

The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is called ______.

environmental scanning

Match the distribution issue with its correct description.

exclusive dealing-an arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors requirements contracts-a buyer must purchase all or part of its needs for a product from one seller for a time period exclusive territorial distributorship-a manufacturer grants a distributor the sole rights to sell a product in a specific geographical area tying arrangement-a seller requires the purchaser of one product to also buy another item in the product line.

Select all that apply Select the four issues related to distribution that are monitored by the government.

exclusive territorial distributorships, exclusive dealings, tying arrangements, requirement contracts

Select all that apply Select three components of the competitive environment.

existing rivalries, substitution possibilities, bargaining power of buyers and suppliers

Select all that apply Culture is defined as a learned and shared set of which of these? (Select all that apply)

ideas, values, attitudes

In a(n) ________ economy, the cost to produce and buy products escalates as prices increase.

inflationary

Environmental scanning is necessary for an organization to ______.

interpret trends that may be a source of opportunity

Select all that apply What two actions can the FTC take regarding deceptive or misleading advertising and unfair business practices?

issue a cease and desist order, order corrective advertising

Culture incorporates the set of values, ideas, and attitudes that are ________ and shared among the members of a group.

learned

Consumer income is a ________ factor that is important to marketers.

microeconomic

Universal Music Group, Sony Music Entertainment, and Warner Music Group together control the majority of the market share in the music industry. What form of competition does this represent?

oligopoly

One way that technology improves production is by helping manufacturers avoid creating waste by reducing the amount of packaging they use. This is referred to as ______.

precycling

The Sherman Act focuses on which component of the marketing mix?

price

Inflation may harm marketers when ______.

prices rise faster than consumer incomes

To get a comprehensive look at your competition, you should consider firms that ______.

provide a product that satisfies the same specific need as yours does

Which environmental force consists of restrictions state and federal laws place on business with regard to the conduct of its activities?

regulatory

An environmental scan will include_______forces impacting a business by way of state and federal laws that may restrict its activities. (one word)

regulatory or regulation

In the United States, the majority of new jobs are generated by _______ businesses.

small

The majority of the competitive landscape in this country is made up of ______.

small businesses

What environmental force involves developing applications from science or engineering research?

technological forces

Which environmental force refers to inventions or innovations from applied science or engineering research?

technology

Companies that use computer chips in their products that allow the product to be connected to a network are using ______.

the Internet of Things

The network of products embedded with connectivity-enabled electronics is known as ______.

the Internet of Things

The act that makes it unlawful to discriminate in prices charged to different purchasers of the same product is called ______.

the Robinson-Patman Act

Select all that apply What are the newest forms of technological changes that are occurring now? (Select all that apply)

wearable technology, biotechnology, blockchain