Chapter 4 Marketing Questions

Within the overall marketing environment, which are the five interrelated dimensions that influence target markets?

Competitive, technological, political-legal, economic, and sociocultural

Which is NOT a trend resulting from technology and innovation?

Consumers are moving away from the Internet and are more reliant on the mobile device.

Which element is NOT a component of buying power sources?

Debt

What are three major issues that must be considered when examining sociocultural forces?

Demographic and diversity characteristics, cultural values, and consumerism

Which best describes the difference between direct and indirect competition?

Direct competition occurs among manufacturers of similar products; indirect competition involves products that are easily substituted with others

Which term describes the amount of money people have left to spend after buying necessities?

Discretionary income

Which best defines disruptive technology?

Disruptive technology is one that displaces an established technology, or a product that creates a completely new industry.

Brand competitors market products within the same product class, but with different features, benefits, and price.

False

Changes in the marketing environment resolve uncertainty, threats, and opportunities for marketers.

False

Employment rises during recessions and declines during economic expansions.

False

Environmental scanning focuses only on the external forces in the market place.

False

Historically, the economy has tended to follow a cyclical pattern that alternates between shorter periods of expansion and longer periods of contraction.

False

Pure competition, if it existed at all, would entail an extremely small number of sellers, all of which could significantly influence price or supply.

False

The rapid technological growth of the last several decades is expected to level off as innovation has slowed down.

False

To prepare for the changing societal environment and future impact on their organization, many companies have developed a consumerism task force.

False

Which best defines sociocultural forces that influence society?

Forces that change people's attitudes, beliefs, norms, customs, and lifestyles

Competition that provides very different products that solve the same problem or satisfy the same basic customer need would best be known as ________ competition.

Generic

Juan has the ability to buy goods, and a high inclination to purchase a product because of his expected satisfaction from said product. Which term best describes Juan's state?

He has a willingness to spend.

At a high level, which of the following is typically NOT a question that product marketing asks of their organizations when determining a competitive strategy?

With whom should we compete?

Identifying marketing opportunities or extracting greater benefits relative to costs from existing marketing opportunities is a good example of a ______.

proactive attempt to influence and shape an environmental force

In relation to a firm's performance, social responsibility involves accepting an obligation to give equal weight to_______ factors.

profits, consumer satisfaction, and social well-being

Deflation can be a long and damaging downward spiral. Which of these is NOT a result of deflation?

Increase in raw material costs

The five dimensions of the marketing environment are dynamic and ________ each other.

Influence

Which is a good example of indirect competition?

Pizza Hut versus DiGiorno pizza

Within competitive structures, products within a monopolistic competition environment would have which characteristics?

Products differentiated with many substitutes

Which selection contains the business cycles, from a traditional view?

Prosperity, recession, depression, and recovery

Which business cycle has high unemployment that declines and total disposable income that increases?

Recovery

Which market segment group relies more heavily on convenience foods, restaurants, travel, entertainment, and recreation?

Singles

Which is NOT a good example of a threat or opportunity derived from an environmental analysis?

Stalled gross domestic product (GDP)

Managers will try to foresee the effects of new products and processes on their firm's operations by completing what activity?

Technology assessment

Regarding marketing and technology, which best defines the technological environment?

The application of knowledge based on discoveries in science, inventions, and innovations

Which of the following is the best example of a barrier that makes it difficult to enter a market and compete with oligopolies?

The cost is an enormous financial investment.

Who is responsible for funding most of the technology research that has been commercialized in the last several decades?

The federal government

Which of the following best defines the sociocultural environment?

The relationship between marketing, society, and culture

Which of the following best outlines why marketers must remain sensitive to society's demographic shifts and changing values?

To determine how consumers will react to products and marketing practices

Applied research attempts to develop new or improved products.

True

Changes in a population's demographic characteristics—age, gender, race, ethnicity, marital and parental status, income, and education—have a significant bearing on relationships and individual behavior.

True

Which best defines environmental scanning in relation to changes in the marketing environment?

A process to survey and interpret relevant data to identify external opportunities and threats.

How is a recession defined as it relates to the national gross domestic product?

A recession is defined as occurring when the gross domestic product falls for two consecutive quarters.

Which best defines consumerism?

A social force that aids and protects the consumer by exerting legal, moral, and economic pressures on businesses and governments.

Which statement is most accurate?

An organization that views environmental forces as uncontrollable remains passive and reactive toward the environment.

Which segment of the United States population was born post World War II and still represents a very large selling and marketing opportunity?

Baby Boomers

Which is a developing technology that can help marketers obtain, store, and process data for marketing intelligence?

Big data

Which list best defines the four types of market competition?

Brand, product, generic, and budget

McKinsey and Company, a global consulting firm, recognizes four stages that an existing firm may go through when faced with disruptive technology. Which of the following is NOT one of the stages?

Change takes a leap