Chapter 03: Concept Check Quiz, Practice, Video Quiz - Apple vs Samsung

Which of the following is a brand competitor for Dr Pepper? a. Starbucks coffee b. Honest Tea c. Coca-Cola d. Tap water e. Almonds

c. Coca-Cola

_______ is a ready source of buying power. a. Income b. Credit c. Disposable income d. Willingness to spend e. Discretionary income

c. Disposable income

Which agency has the most influence over marketing activities? a. Food and Drug Administration (FDA) b. Federal Communications Commission (FCC) c. Federal Trade Commission (FTC) d. Bureau of Consumer Financial Protection e. Environmental Protection Agency (EPA)

c. Federal Trade Commission (FTC)

What is the significance of the 2010 Supreme Court Decision Citizens United v. Federal Election Commission? a. It ruled that individuals are authorized to donate as much money as they like to candidate elections. b. It ruled that the government has the authority to place limits on corporate spending in candidate elections. c. It ruled that the government is not authorized to ban corporate spending in candidate elections. d. It ruled that politicians must cap the donations they receive from companies. e. It ruled that citizens have the right to sue firms for donating large sums to candidates.

c. It ruled that the government is not authorized to ban corporate spending in candidate elections.

Lobbying involves which type of force in the marketing environment? Please choose the best answer. a. Sociocultural b. Legal and regulatory c. Political d. Competitive e. Economic

c. Political

During what period in the business cycle are firms first likely to cut their marketing budgets? a. Recovery b. Depression c. Recession d. Prosperity e. Economic standstill

c. Recession

Which of the following products most closely resembles pure competition? a. Televisions b. Cereal c. Table salt d. Candy bars e. Mobile homes

c. Table salt

Which of the following is the major source of cultural values? a. The workplace b. Religion c. The family d. Social class e. Laws and regulations

c. The family

Apple and Samsung both have engaged in lawsuits to resolve disputes regarding ownership of specific technological innovations. Lawsuits represent what kind of approach to responding to environmental forces? a.Measured b.Analytical c.Proactive d.Competitive e.Reactive

c.Proactive

Which of the following types of competition are geared toward market products with similar features and benefits to the same customers at similar prices? a. Brand competitors b. Product competitors c. Monopolistic competitors d. Total budget competitors e. Generic competitors

a. Brand competitors

Charles works as a marketer at Microsoft. He has just spent the last few weeks collecting information about environmental forces that will impact computer industry. The time has come to try and make sense of this data and gather insights which he hopes will improve the company's marketing strategy in relation to competitors. Which type of activity is Charles working on? a. Environmental analysis b. Environmental scanning c. SWOT analysis d. Competitive scanning e. Technology assessment

a. Environmental analysis

The Foreign Corrupt Practices Act in the United States is a bribery law that is more encompassing than the U.K. Bribery Act. a. True b. False

b. False

The major source of cultural values is religion. a. True b. False

b. False

Which of the following is most closely related to the political forces of the marketing environment? a. Economic forces b. Legal and regulatory forces c. Competitive forces d. Technological forces e. Sociocultural forces

b. Legal and regulatory forces

Which of the following is NOT an example of illegal anticompetitive practices? a. False advertising b. Mislabeling products c. Obtaining confidential information from a competitor's employees d. Stealing trade secrets e. Price fixing

b. Mislabeling products

Which of the following types of competitive structure often exists because of the difficulty and expense of entering a market? a. Monopoly b. Oligopoly c. Pure competition d. Brand competition e. Monopolistic competition

b. Oligopoly

Scenario 3.2 Internet privacy has become a major issue. In fact, in Europe there are privacy laws such as General Data Protection Regulation (GDPR) to regulate data protection and privacy. The United States does not have comparable laws to protect consumer privacy on the internet. Collecting this information is beneficial for firms because then they can tailor marketing messages that better fit its users' needs. These better marketing campaigns can provide them with a competitive advantage. Acme Corporation uses cookies and other devices to collect information. Its privacy policy explicitly informs users that it collects information. However, most people do not read through the policy. Lately, some consumers have complained because they are worried that their information could be compromised. They question the security of the site. Acme wants to restore confidence and prove that it has controls in place. Refer to Scenario 3.2. What type of environmental force does this issue involve? a. Sociocultural b. Technological c. Competitive d. Legal and regulatory e. Political

b. Technological

Proactive organizations often seek to influence the political forces of the environment through _______ and _______. a. social media; lobbying b. campaign contributions; lobbying c. campaign contributions; social media d. bribes; lobbying e. campaign contributions; bribes

b. campaign contributions; lobbying

The growing demand for health-care services, recreation, tourism, retirement housing, and selected skin-care products most closely relates to _______. a. the demographic characteristic of marital status b. the demographic characteristic of age c. consumerism d. the demographic characteristic of gender e. cultural values

b. the demographic characteristic of age

Apple and Samsung have waged a lengthy battle over ownership of specific technological innovations in the smart phone market. They are _______. a.total budget competitors b.brand competitors c.premium competitors d.product competitors e.generic competitors

b.brand competitors

Which of the following statements is true about how our U.S. demographics are changing? a. Fertility rates are at their lowest. b. Immigration has begun to stall. c. Married couples are on the rise. d. The population has sunk to a low point. e. The U.S. is undergoing another baby boom.

a. Fertility rates are at their lowest.

_______ considers cases in which an advertiser challenges issues raised by the National Advertising Division (NAD) about an advertisement. a. National Advertising Review Board (NARB) b. Bureau of Consumer Financial Protection c. Consumer Product Safety Commission (CPSC) d. Federal Trade Commission (FTC) e. Better Business Bureau (BBB)

a. National Advertising Review Board (NARB)

Which of the following aspects of technology relates to the fact that technology acts as a catalyst to spur even faster development? a. Self-sustaining b. Internet c. Dynamics d. Disruption e. Reach

a. Self-sustaining

A person can have a high income and little wealth. a. True b. False

a. True

Marketers can influence the political process through political action committees that solicit donations from individuals and then contribute those funds to candidates running for political office. a. True b. False

a. True

Scenario 3.1 Louis is a student at Texas A&M who just secured a summer internship working for the marketing department of Southwest Airlines. He is assisting Marlene, one of the marketing managers, with a competitive assessment of the U.S. market. Marlene wants him to think outside of the box when assessing the competition. She tells him to think beyond direct competitors to any competitors that might be able to offer similar services as Southwest. Refer to Scenario 3.1. Because Southwest Airlines operates in a(n) _______, if American Airlines lowers prices, Southwest will likely _______. a. oligopoly; do the same b. monopolistic competition; do the same c. monopoly; lower prices d. oligopoly; not change theirs e. monopolistic competition; increase prices

a. oligopoly; do the same

ACME Corp. managers view environmental forces as uncontrollable and thus adjust their marketing strategies to changes in the marketing environment. This approach is best described as _______. a. reactive b. offensive c. static d. proactive e. controversial

a. reactive

The interviewee says that Apple and Samsung, "are the only two companies that are really selling smartphones at this point." One can infer from this that Apple and Samsung are operating under which of the following competitive structures? a.Monopolistic competition b.Pure competition c.Socialistic competition d.Oligopoly e.Monopoly

d.Oligopoly

Income that is available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter is known as

discretionary income

Scenario 3.1 Louis is a student at Texas A&M who just secured a summer internship working for the marketing department of Southwest Airlines. He is assisting Marlene, one of the marketing managers, with a competitive assessment of the U.S. market. Marlene wants him to think outside of the box when assessing the competition. She tells him to think beyond direct competitors to any competitors that might be able to offer similar services as Southwest. Refer to Scenario 3.1. Which of the following represents a brand competitor to Southwest Airlines? a. Harley Davidson b. GoKarts USA c. Greyhound Bus d. FedEx Express e. Delta Airlines

e. Delta Airlines

Which of the following involves observation; secondary sources such as business, trade, government, and general-interest publications; and marketing research? a. Environmental analysis b. Environmental approach c. Proactive approach d. Technology scanning e. Environmental scanning

e. Environmental scanning

Scenario 3.1 Louis is a student at Texas A&M who just secured a summer internship working for the marketing department of Southwest Airlines. He is assisting Marlene, one of the marketing managers, with a competitive assessment of the U.S. market. Marlene wants him to think outside of the box when assessing the competition. She tells him to think beyond direct competitors to any competitors that might be able to offer similar services as Southwest. Refer to Scenario 3.1. Which of the following represents a generic competitor to Southwest Airlines? a. Blue Star Jets (on-demand private charter) b. FedEx Express c. Delta Airlines d. Schwinn bicycles e. Greyhound bus system

e. Greyhound bus system

Which of the following is a consumer protection law? a. Celler-Kefauver Act b. Digital Millennium Copyright Act c. Sherman Antitrust Act d. Lanham Act e. Nutritional Labeling and Education Act

e. Nutritional Labeling and Education Act

During which of the following economic conditions does unemployment begin to decline, total disposable income increase, and consumers' willingness to buy begin to rise? a. Business cycle b. Recession c. Depression d. Prosperity e. Recovery

e. Recovery

Scenario 3.2 Internet privacy has become a major issue. In fact, in Europe there are privacy laws such as General Data Protection Regulation (GDPR) to regulate data protection and privacy. The United States does not have comparable laws to protect consumer privacy on the internet. Collecting this information is beneficial for firms because then they can tailor marketing messages that better fit its users' needs. These better marketing campaigns can provide them with a competitive advantage. Acme Corporation uses cookies and other devices to collect information. Its privacy policy explicitly informs users that it collects information. However, most people do not read through the policy. Lately, some consumers have complained because they are worried that their information could be compromised. They question the security of the site. Acme wants to restore confidence and prove that it has controls in place. Refer to Scenario 3.2. Acme wants to hire a trusted third-party verification site that specializes in internet security to view its site. This third party has strong privacy criteria. If Acme meets these criteria, they can display a special seal on its website. This seal will demonstrate to users that Acme's website meets high standards in internet security. Acme thus will reassure consumers that their information is safe. What type of activity is Acme engaging in? a. Consumerism b. Obedience to relevant laws c. Technology assessment d. Philanthropy e. Self-regulation

e. Self-regulation

The savings in your savings account would fall under which of the following? a. Disposable income b. Credit c. Discretionary income d. Prosperity e. Wealth

e. Wealth

People are sometimes more willing to buy if they have the _______. a. discretionary income b. wealth c. business cycle d. disposable income e. buying power

e. buying power

Mothers Fighting Added Sugar is sending emails to companies, posting on Facebook and Instagram, lobbying government agencies, running a petition on Change.org, and boycotting companies whose activities they deem irresponsible. This best illustrates _______. a. consumer protectionism b. lobbying c. boosterism d. crusading e. consumerism

e. consumerism

At ACME Corp., managers are trying to foresee the effects of new products and processes on their firm's operations, on other business organizations, and on society in general. This is best described as _______. a. environmental analysis b. environmental scanning c. technology scanning d. SWOT analysis e. technology assessment

e. technology assessment

Both Apple and Samsung were found to have infringed on each other's patents to protect their inventions and were forced to pay fines. Patents, which protect the first company to develop an innovation, best relate to which of the forces discussed in the text? a.Economic b.Political c.Competitive d.Sociocultural e.Technological

e.Technological

________ is the process of collecting information about forces in the marketing environment.

environmental scanning

Many marketing managers attempt to influence and shape environmental forces. This is known as the ___________ approach.

proactive

_________ involves organized efforts by individuals, groups, and organizations to protect consumers' rights.

consumerism

Which of the following regulatory agencies has the greatest influence over marketing activities? a. National Advertising Review Board b. Food & Drug Administration c. Consumer Product Safety Commission d. Federal Trade Commission e. Better Business Bureau

d. Federal Trade Commission

Soda companies are worried because sales have fallen flat. People today are more concerned about their sugar intake and want to be healthier. This reflects a change in _______. a. consumerism b. demographics c. ethical values d. cultural values e. diversity characteristics

d. cultural values

Whether fluctuating rapidly or slowly, environmental forces are always _______. a. controversial b. static c. predictable d. dynamic e. weak

d. dynamic

The _______ of technology involves the constant change that challenges every aspect of our society. a. scope b. breadth c. reach d. dynamics e. self-sustaining nature

d. dynamics

A(n) _________ is a procedure with which managers try to foresee the effects of new products and processes on their firm's operations, on other business organizations, and on society in general.

technology assessment