Chapter 3: Evaluating Opportunities in the Changing Market Environment

If Waldo's Window Company produced windows that were dangerous because small children could easily remove the and fall out of them, the _______ has the power to force the company to recall its product.

Consumer Product Safety Commission

Safety standards for products such as bicycles are set by the

Consumer Product Safety Commission

A newspaper article with which headline would be least likely to involve the political environment?

Egg Sales Fall as Consumers Switch to Low Cholesterol Diets

Which country is likely to see a population decline from 2020 to 2040?

Germany

_________ refers to the total market value of all goods and services provided in a country's economy in a year by both residents and non-residents of that country

Gross domestic product

Which statement about the median age of U.S. population is true?

It is growing because the percentage of population in older age groups has increased.

Which statement is true about political environments?

Social critics and governments can affect the political environment

The Clayton Act is concerned with

anticompetitive practices

American economic and legislative thinking based on the idea that

competition among many firms helps the economy

Few people in Europe diet. So the same soft drink that PepsiCo sells in the U.S. under the brand name of "Diet Pepsi" is sold in England under the brand name of "Pepsi MAX." This is an example of which part of the external market environment?

cultural and social

Rachel lives in a Hasidic Jewish community. All her friends follow the same religion and have the same beliefs. This community is an example of the ________ environment.

cultural and social

A manufacturer of low-cost scooters carefully developed a strategy for moving into South Africa. The strategy had poor results after interest rates and inflation rose rapidly in most of its South African markets, demonstrating the influence of the ________ environment on marketing strategy.

economic

A representative for a financial services company has a client who wants to invest in stocks only. The representative knows that the attractiveness of mutual funds and bond accounts will differ depending on the current interest rate. She must plan her offerings with the ______ environment in mind.

economic

When a local bank in Dallas makes loans to its small business customers, it charges them an interest rate for borrowing money. Interest rates are part of the __________ environment.

economic

The direct market environment

includes customers, the company, and competitiors

In its annual report, Nike claims "The reasons every Nike employee comes to work every day are to create great product, to lead the athletic industry in innovation, and to serve the athlete." This is Nike's

mission statement

Beauregard felt like buying a foreign car, even if it was less expensive that an American brand, would be an insult to his country by benefiting other countries. He proudly recommended other to "Buy American." Beauregard illustrates the concept of

nationalism

Verizon reacted to the popularity of the smartphone by adding several smartphone models to its line of phones. The availability and popularity of smartphones most likely same about du to changes in the _______ environments.

social and technological

What is among the major areas of the external market environment?

technological environment

According to projections, the population of ______ is likely to grow almost 10 percent between 2020 and 2040

the United States