Marketing Principles - ch. 4 quiz

A firm allows its researchers to devote 20 percent of their time to pursue their own ideas and projects. Which approach is the company using in this case to stimulate innovation? a. Creating an innovative environment b. Using the Web c. Catering to entrepreneurs d. Using marketing research

??? NOt a. [Clear policies that reserve blocks of time for scientists or engineers to explore their own ideas have worked well at some companies.]

The ________ outlaws discrimination in prices to different buyers. a. Clayton Act of 1914 b. Sherman Act of 1890 c. Foreign Corrupt Practices Act d. Foreign Corrupt Practices Act

a. Clayton Act of 1914

The Tobacco Control Act gives the ________ authority to regulate tobacco products, with a special emphasis on preventing their use by children. a. Food and Drug Administration b. United States Internal Trade Commission c. Federal Trade Commission d. United States Internal Trade Commission

a. Food and Drug Administration

As a demographic, ________ refers to the people born between 1979 and 1994. a. Generation Y b. baby boomer c. the silent generation d. baby boomer

a. Generation Y

Which of the following is true of a recession? a. It occurs when the gross domestic product falls for two consecutive quarters. b. It causes an increased demand for goods and services. c. It is a period of economic activity characterized by positive growth. d. It causes an increased demand for goods and services.

a. It occurs when the gross domestic product falls for two consecutive quarters.

Which of the following is true of the Hart-Scott-Rodino Act? a. It requires large companies to notify the government of their intent to merge. b. It created the Federal Trade Commission to deal with antitrust matters. c. It prohibits the bribery of foreign officials to obtain business. d. It outlaws false and deceptive advertising and other practices that might injure the public.

a. It requires large companies to notify the government of their intent to merge.

Why are Asian Americans sometimes called a "marketer's dream"? a. On average, Asian Americans are younger, better educated, and have higher incomes than most other Americans. b. Retailers know they can easily convince Asian Americans to purchase new products as Asian Americans place high value on fashion. c. Research has shown that Asian Americans trust advertisements much more than any other ethnic group in the United States. d. There is little cultural diversity within the Asian American market, simplifying the promotional efforts firms must take to reach them.

a. On average, Asian Americans are younger, better educated, and have higher incomes than most other Americans.

The main role of the Federal Trade Commission's Bureau of Competition is to: a. challenge mergers and acquisitions that would likely lead to higher prices. b. protect consumers against unfair and deceptive marketing acts. c. encourage monopolization and agreements between competitors. d. protect consumers against unfair and deceptive marketing acts.

a. challenge mergers and acquisitions that would likely lead to higher prices. [The main role of the Federal Trade Commission's Bureau of Competition is to review mergers and acquisitions, and challenge those that would likely lead to higher prices.]

Component lifestyles: a. developed because consumers could choose goods and services that meet their diverse needs. b. have made it easier for companies to identify their target markets. c. decrease the complexity of consumers' buying habits. d. were more common in the past, when people tended to define themselves solely by their profession.

a. developed because consumers could choose goods and services that meet their diverse needs.

A period of economic activity characterized by negative growth, which reduces demand for goods and services, is known as a(n) ________ . a. recession b. economic boom c. trough d. boom and bust

a. recession

The ________ establishes protection for trademarks. a. Sherman Act of 1890 b. Lanham Act of 1946 c. Clayton Act of 1914 d. Hart-Scott-Rodino Act of 1976

b. Lanham Act of 1946

________ is measured by comparing income to the relative cost of a standard set of goods and services in different geographic areas. a. Consumer price index b. Purchasing power c. Household debt d. Household debt

b. Purchasing power

The U.S. Congress passed the ________ in an attempt to regulate unsolicited e-mail advertising. a. Do Not Call Law b. Child Protection Act c. CAN-SPAM Act d. Children's Online Privacy Protection Act

c. CAN-SPAM Act

The ________ is a federal agency that protects the health and safety of consumers in and around their homes. a. Occupational Safety and Health Review Commission b. Office of Public Safety c. Consumer Products Safety Commission d. Environmental Protection Agency

c. Consumer Products Safety Commission

The ________ is a federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce. a. U.S. Securities and Exchange Commission b. Consumer Financial Protection Bureau c. Federal Trade Commission d. U.S. Trade and Development Agency

c. Federal Trade Commission

________ is a measure of the decrease in the value of money, generally expressed as the percentage reduction in value since the previous year. a. Cost of living b. Discretionary income c. Inflation d. Disposable income

c. Inflation.

________ research attempts to develop new or improved products. a. Pure b. Applied c. Primary d. Basic

b. Applied

Which of the following best defines a target market? a. It is a group of people who buy products from the same brand rather than other suppliers. b. It is a group of people for which a firm designs and maintains a marketing mix intended to meet the needs of that group. c. It is a group of people who are early customers of a given product or technology and provide feedback that the firm can implement. d. It is the final group of people who are the users of goods or services.

b. It is a group of people for which a firm designs and maintains a marketing mix intended to meet the needs of that group.

Which of the following is true of the baby boomer generation? a. The oldest baby boomers were around 34 years old in 2013. b. They control the majority of personal wealth in the U.S. c. They are a small market with minimal spending power. d. They are unwilling to change brands or try new things.

b. They control the majority of personal wealth in the U.S. [Baby boomers control about 80 percent of personal wealth in the United States.]

Research that attempts to expand the frontiers of knowledge but is not aimed at a specific, pragmatic problem is called ________ research. a. applied b. basic c. marketing d. marketing

b. basic

The Pro Hardware store holds monthly workshops for women on basic home repair techniques. It has evidently not been lost on Pro Hardware that: a. men no longer seem as interested in hardware as they were in years past. b. component lifestyles make women a viable market for non-traditional projects. c. most families simply do not have enough time to keep up with home repairs. d. personal traits tend to vary in the U.S. by region.

b. component lifestyles make women a viable market for non-traditional projects.

When companies create intranets to facilitate employees sharing ideas and let the employees know that they have the freedom to fail, they are: a. talking to early adopters. b. creating an innovative environment c. building scenarios. d. using market research.

b. creating an innovative environment

Consumers' attitudes, values, and lifestyles constitute the ________ factors that affect marketing. a. legal b. economic c. political d. political

b. economic

The Federal Trade Commission's Bureau of Consumer Protection: a. seeks out and challenges anti-competitive conduct in the marketplace. b. empowers consumers with free information to spot and avoid fraud. c. promotes competition in industries where consumer impact is high. d. reviews mergers and acquisitions, and challenges those that would likely lead to higher prices.

b. empowers consumers with free information to spot and avoid fraud. [The Federal Trade Commission's Bureau of Consumer Protection works for the consumer to prevent fraud, deception, and unfair business practices in the marketplace. It empowers consumers with free information to help them exercise their rights and to spot and avoid fraud and deception.]

When a coal mining company lobbies Congress for changes in environmental laws and regulations that result in the construction of more coal-burning power plants, the company has engaged in ________ . a. relationship marketing b. environmental management c. demographic manipulation d. relationship marketing

b. environmental management

Which of the following is an example of demographic information? a. Conscious about money, fond of the way things used to be, appreciative of good service b. Politically liberal, technologically savvy, urban c. Single, 18- to 25-year-olds, $20,000 to $40,000 a year, renters d. Status seekers, professionals, busy with little time to cook for their family

c. Single, 18- to 25-year-olds, $20,000 to $40,000 a year, renters. [ Demography, the study of people's vital statistics, such as age, race and ethnicity, and location.]

Sharon was born in the 1950s and expects to continue working through her sixties. Sharon is most likely a: a. Gen Xer. b. Gen Yer. c. baby boomer. d. millennial.

c. baby boomer

As a demographic, people born between 1946 and 1964 are known as the ________ . a. Generation Y b. Generation X c. baby boomers d. millennials

c. baby boomers

The degree of interdependence within the industry that a firm operates is part of the ________ factors in the marketing environment. a. social b. demographic c. competitive d. political

c. competitive [The competitive environment encompasses the number of competitors a firm must face, the relative size of the competitors, and the degree of interdependence within the industry.]

The study of people's vital statistics such as age, race and ethnicity, and location is known as ________ . a. regional science b. anthropology c. demography d. sociology

c. demography

When a company implements strategies that attempt to shape the external environment within which it operates, it is engaging in ________ . a. environmental marketing b. global competition c. environmental management d. strategic analysis

c. environmental management

_______ research attempts to develop new or improved products. a. Primary b. Basic c. Pure d. Applied

d. Applied.

Danika goes to the store to buy a new printer. The salesman tells her that the store requires all users of its printers to purchase all their paper and toner from the company as well. Danika informs the salesman that his company's policy is in violation of the: a. Lanham Act of 1946. b. Sherman Act of 1890. c. Hart-Scott-Rodino Act of 1976. d. Clayton Act of 1914.

d. Clayton Act of 1914. [The Clayton Act prohibits tying contracts (which require the buyer of one product to also buy another item in the line)].

As a demographic that influences marketing, which of the following is true of teens? a. A small percentage of U.S. teens use social networking. b. Not many U.S. teens own a cellphone. c. Most teens prefer to shop online than in stores. d. Teens' biggest purchase influence comes from friends.

d. Teens' biggest purchase influence comes from friends.

Which of the following fact challenges the marketers trying to target the Hispanic market? a. Hispanic households tend to have larger families that prefer local products. b. The Hispanic population continues to gain market share. c. The majority of Hispanic Americans are of Mexican descent. d. The Hispanic population is diverse with many language differences.

d. The Hispanic population is diverse with many language differences.

The ________ protects consumers against terrorist acts. a. Consumer Product Safety Act b. Federal Hazardous Substances Act c. CAN-SPAM Act d. Homeland Security Act

d. The Homeland Security Act ...of 2002 protects consumers against terrorist acts. It created the Department of Homeland Security.

Which of the following is true of the demographic known as Generation Y? a. They were the first generation of latchkey children. b. They were less affected by the Great Recession than other cohorts. c. They were more affected by the Great Recession than other cohorts. d. They expect brands to be on social media.

d. They expect brands to be on social media.

Which of the following is most likely true of the ethnic minority populations in the U.S.? a. The population of nonwhite minorities is rapidly declining. b. The ethnic minority population is reluctant to embrace other cultures. c. Immigrant minorities prefer local brands to those found in their homeland. d. They patronize companies that understand their native cultural preferences.

d. They patronize companies that understand their native cultural preferences. [ Minority populations embrace other cultures while continuing to patronize companies that understand their native cultural preferences.]

Which of the following is true of Generation X? a. Marketing to Gen Xers has been easy. b. They control about 80 percent of the wealth in the United States. c. They were relatively unaffected by the Great Recession. d. They spent more time without adult support than any other age cohort.

d. They spent more time without adult support than any other age cohort.

When companies create intranets to facilitate employees sharing ideas and let the employees know that they have the freedom to fail, they are: a. building scenarios. b. using market research. c. talking to early adopters. d. creating an innovative environment.

d. creating an innovative environment.