Marketing Chapter 3

____ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other. Select one: a. Brand b. Oligopolic c. Generic d. Product e. Total budget

a. Brand

Price discrimination is prohibited by the ____ Act. a. Robinson-Patman b. Sherman Antitrust c. Celler-Kefauver d. Consumer Goods Pricing e. Wheeler-Lee

a. Robinson-Patman

The Lazy-Boy Furniture Company collect information about a wide variety of competitive, economic, political, legal, and regulatory, technological, and socio-cultural forces that affect its marketing activities. This process is called a. environmental scanning. b. marketing. c. marketing information processing. d. environmental analysis. e. survey of environment.

a. environmental scanning.

Marketers who attempt to influence and change the various environmental forces have a(n) ___________ response to these forces. a. proactive b. reactive c. inactive d. variable e. positive

a. proactive

Which category of income are marketers most interested in? Select one: a. Wealth b. Disposable income c. Extra income d. Total income e. Discretionary income

b. Disposable income

What type of competitive structure exists when a firm produces a product that has no close substitutes? Select one: a. Monopolistic competition b. Monopoly c. Mixed competition d. Oligopoly e. Pure competition

b. Monopoly

Consumer confidence and willingness to spend begins to increase during periods of ____, and marketers must remain very flexible to make the necessary adjustments. Select one: a. depression b. recovery c. growth d. recession e. prosperity

b. recovery

The Center for Responsive Politics publishes data about dollars spent on lobbying efforts by major companies, industries and other entities seeking to influence Congressional legislation and the political process. The table below lists the industries that spent the most money on lobbying activities in 2011 and 2013: According to this data, which one of the following statements is true? Select one: a. ​Health professionals spent more on lobbying activities in 2011 than 2013. b. ​Most of the top industries spent less on lobbying activities in 2013 compared to 2011. c. ​Hospitals and nursing homes spent more on lobbying activities in 2013 than in 2011. d. ​Most of the top industries spent more on lobbying activities in 2013 compared to 2011. e. ​The Computers/Internet and the Insurance industries both increased spending on lobbying activities from 2011 to 2013.

b. ​Most of the top industries spent less on lobbying activities in 2013 compared to 2011.

____ competitors provide very different products that satisfy the same basic customer need. a. Marketing b. Generic c. Total budget d. Brand e. Product

b. Generic

Which of the following statements about self-regulatory programs is false? a. Self-regulatory programs are usually less expensive than governmental regulatory programs. b. Many nongovernmental self-regulatory programs have neither the tools nor the authority to enforce guidelines. c. Self-regulatory guidelines generally are stricter than governmental regulatory programs. d. When a trade association sets up industry guidelines, some firms that are in the industry but not in the trade association do not follow the guidelines. e. Self-regulatory programs' guidelines generally are more realistic and operational.

c. Self-regulatory guidelines generally are stricter than governmental regulatory programs.

According to the textbook, a manager's duties in an environmental analysis include Select one: a. conducting research, assessment, and reporting. b. observation and assessment. c. checking information for accuracy, resolving inconsistencies, and assigning significance to the findings. d. observation, market research, and fact finding. e. checking the company database, conducting research, and reporting.

c. checking information for accuracy, resolving inconsistencies, and assigning significance to the findings.

Consumer confidence is at a low during periods of Select one: a. recovery. b. prosperity. c. depression. d. recession. e. slowdown.

c. depression.

During which stage of the business cycle is unemployment low and total income relatively high? a. Depression b. Recession c. Prosperity d. Recovery e. Repression

c. Prosperity

Scenario 3.1 Use the following to answer the questions. ​ ​Meyers' Sporting Goods, a national chain, has been doing business with Soljur Sports, a manufacturer of skateboards, for several years. Recently, it came to the attention of Meyers' financial director that the average cost per Soljur Sports skateboard had substantially increased over that of the previous year. The financial director asked the marketing department if they knew what the Soljur skateboards cost at competing sporting goods stores, to see if they too were likely hit with a higher cost. ​ The marketing department found that the Soljur skateboards were priced at $15 less in the competing store than at Meyers. The financial director found that Soljur Sports was selling a similar number of skateboards to one of Meyers' competitors for $10 less per skateboard. The attorney for Meyers' Sporting Goods immediately filed a complaint with the Federal Trade Commission. ​ Refer to Scenario 3.1. Suppose that the Soljur Sports company was actually discriminating against Meyer Sporting Goods with its price increase. Which of the following acts prohibits this type of business behavior? Select one: a. Sherman Antitrust b. Celler-Kefauver c. Consumer Goods Pricing d. Robinson-Patman e. Wheeler-Lee

d. Robinson-Patman

The Federal Reserve Bank just issued its economic report on the U.S. economy for the quarter just ended. The following are some of the key points mentioned in the report: "Economic activity has continued to grow at a moderate pace since the last report." "Manufacturers report that business activity has picked up considerably in recent weeks." "Tourism activity has strengthened, no longer held back by harsh weather." "General merchandise retailers report that sales rebounded strongly in April and early May." "Retail contacts generally say that inventories are at satisfactory levels, that prices are mostly steady, and that the degree of discounting is little changed from a year ago." Based on these economic forces, you can conclude Select one: a. ​that the economy is in the recession stage of the business cycle and consumers' buying power is increasing. b. ​that the economy is in the prosperity stage of the business cycle and consumers' buying power is declining. c. ​that the economy is entering the depression stage of the business cycle. d. ​that the economy is in the prosperity stage of the business cycle and consumers' buying power is increasing. e. ​that the economy is in the recession stage of the business cycle and consumers' buying power is declining.

d. ​that the economy is in the prosperity stage of the business cycle and consumers' buying power is increasing.

What national self-regulatory organization screens ads? a. Federal Communications Commission b. Consumer Federation of America c. Better Business Bureau d. National Advertising Review Board e. Federal Advertising Review Division

d. National Advertising Review Board

Consumer protection legislation deals with all of the following legal concerns except Select one: a. information disclosure. b. consumer safety. c. sale of hazardous products. d. health claims on food packages. e. monopolistic practices.

e. monopolistic practices.

​Although the monopoly is one of the four major market structures that theoretically exists in a free market capitalist system, the reality is there are very few true monopolies in the economy. This is the result of many federal laws and regulations that have been passed to limit the creation and power of monopolies. ​ Which one of the following federal laws was passed to prevent the creation of monopolies in the economy? Select one: a. ​Lanham Act of 1946 b. ​Securities Act of 1933 c. ​Sarbanes-Oxley Act of 2002 d. ​Wheeler-Lea Act of 1938 e. ​Sherman Act of 1890

e. ​Sherman Act of 1890

Companies that compete for the same limited financial resources of the same customers are known as __________ competitors. a. product b. brand c. generic d. oligopolic e. total budget

e. total budget

Scenario 3.2 Use the following to answer the questions. ​ Clayton Homes, a mobile home manufacturer since 1934, introduced its new i-House in 2007. The i-House is one of the first of its kind, designed as an updated, modern version of the modular home, offered as a base home plus add-ons known as "pods." The base home is a one-bedroom, one-bath 734-square foot version at a price of around $80,000. There is also a 1,000 square-foot version for around $100,000. All versions may add on the additional one-room pods as desired which are shipped to your location and constructed on-site. The homes offer galvanized metal roofing, corrugated steel siding, VOC-free paints, and a "butterfly" roof that collects rainwater. The i-House uses 30% less energy than a similar square-foot home and offers "green" characteristics of solar panels, tankless water heaters, and low-flow faucets. In addition, it comes with bamboo flooring, a renewable resource. The modular, pre-fabricated design offers endless options for creating the customer's home and its engineered building system cuts down on construction waste. Due to the "green effects" of the i-House, the state governments have given it a tax abatement for any sales taxes. ​ Refer to Scenario 3.2. Clayton Homes is revising its marketing strategy for the i-House due to the recent recession. Which of the following is the best action for promoting the i-House in the near future? Select one: a. Significantly reduce the prices on the company's product offerings. b. Decrease production until the economy improves. c. Emphasize the value of the i-House products. d. Significantly reduce advertising expenditures to create an exclusive image. e. Focus on the "green" qualities of the home and target environmentally-conscious individuals.

Got Wrong Not c. Emphasize the value of the i-House products.

Lindsay was reviewing her bank statement for last month. She had paid her rent, her car payment, electric and phone bills, and made three trips to the grocery. Lindsay had also bought tickets to a Katy Perry concert and new clothes to wear to the concert. The money spent on Lindsay's rent, car, electric and phone bills was likely from her ____ , while the money spent on the concert tickets and new clothes was from her _____. Select one: a. Gross income; Savings income b. Disposable income; net income c. Disposable income; discretionary income d. Disposable income; savings e. Gross income; disposable income

Got Wrong Not e. Gross income; disposable income

J. Pitner Clothing is a medium-size specialty men's and women's clothing store in a market with many other specialty stores, department stores, and discounters. It has established a reputation for offering high-quality, fashionable merchandise with quality service. J. Pitner's competitive environment would best be characterized as a. monopolistic competition. b. pure competition. c. a monopoly. d. an oligopoly. e. faceted competition.

Got Wrong. Not pure competition

Scenario 3.1 Use the following to answer the questions. ​ Meyers' Sporting Goods, a national chain, has been doing business with Soljur Sports, a manufacturer of skateboards, for several years. Recently, it came to the attention of Meyers' financial director that the average cost per Soljur Sports skateboard had substantially increased over that of the previous year. The financial director asked the marketing department if they knew what the Soljur skateboards cost at competing sporting goods stores, to see if they too were likely hit with a higher cost. ​ The marketing department found that the Soljur skateboards were priced at $15 less in the competing store than at Meyers. The financial director found that Soljur Sports was selling a similar number of skateboards to one of Meyers' competitors for $10 less per skateboard. The attorney for Meyers' Sporting Goods immediately filed a complaint with the Federal Trade Commission. ​ Refer to Scenario 3.1. A regular customer of Meyers Sporting Goods feels that some of its advertisements are deceptive. He responded to an ad for sale skateboards one hour after the store opened and found that none were left. Where should he file a complaint? a. National Advertising Review Board b. Consumer Product Safety Commission c. Office of Consumer Affairs d. Federal Advertising Commission e. Better Business Bureau

Got wrong Not d. Federal Advertising Commission

Your company makes highly sophisticated components for military equipment. The U.S. Department of Defense is your largest customer. In recent years, you have expanded your customer base to include the militaries of all the major countries in the world. The following headlines appeared in the Sunday NYC Times newspaper recently: "The Federal Reserve Board Chairman Sees Economic Growth Accelerating in the Third Quarter." "Congressional Republicans and Democrats Fail to Reach Compromise on the New Immigration Bill." "The Average Teen Spends Two Hours Per Day on Social Media Sites." "State Department Considers Imposing New Sanctions on Exports of Sensitive Military Technology." "Unemployment Rate Falls to 6.2%." Which one of the following statements is true regarding these headlines? ​a. Headline #5 should be categorized as a sociocultural force in the company's marketing environment. b. ​Headline #4 should be categorized as a legal and regulatory force in the company's marketing environment. c. All of the headlines should be categorized as political forces when analyzing the company's marketing environment. d. ​All of the headlines should be categorized as economic forces when analyzing the company's marketing environment. e. All of the headlines should be categorized as geopolitical forces in the company's marketing environment.

b. Headline #4 should be categorized as a legal and regulatory force in the company's marketing environment.