Chapter 3 Cengage

_____________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

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. Greyhound bus system b. Schwinn bicycle c. FedEx Express d. Blue Star Jets (on-demand private charter) e. Delta Airlines

a. Greyhound bus system

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

Charles works as a marketer at Hewlett-Packard. 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. SWOT analysis c. technology assessment d. environmental scanning e. competitive scanning

a. environmental analysis

During what period in the business cycle are firms first likely to cut their marketing budgets? a. recession b. economic standstill c. prosperity d. depression e. recovery

a. recession

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

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

b. dynamics

Scenario 3.2. Internet privacy has become a major issue. In fact, in Europe there are privacy laws to limit how much information websites can collect from users without their permission. 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. competitive b. technological c. sociocultural d. legal and regulatory e. political

b. technological

What is the significance of the 2010 Supreme Court decision Citizens United v. Federal Election Commission? a. It ruled that politicians must cap the donations they receive from companies. 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 citizens have the right to sue firms for donating large sums to candidates. e. It ruled that individuals are authorized to donate as much money as they like to candidate elections.

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

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. monopoly; lower prices b. oligopoly; not change theirs c. oligopoly; do the same d. monopolistic competition; increase prices e. monopolistic competition; do the same

c. oligopoly; do the same

Lobbying involves which type of force in the marketing environment? Please choose the best answer. a. legal and regulatory b. sociocultural c. political d. competitive e. economic

c. political

Scenario 3.2. Internet privacy has become a major issue. In fact, in Europe there are privacy laws to limit how much information websites can collect from users without their permission. 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. philanthropy b. consumerism c. self-regulation d. technology assessment e. obedience to relevant laws

c. self-regulation

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

consumerism

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. GoKarts USA b. Greyhound Bus c. FedEx Express d. Delta Airlines e. Harley Davidson

d. Delta Airlines

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

d. Federal Trade Commission

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

d. Fertility rates are at their lowest.

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

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

e. Nutritional Labeling and Education Act

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. diversity characteristics e. cultural values

e. cultural values

Which of the following products most closely resembles pure competition? a. televisions b. cereal c. candy bars d. mobile homes e. table salt

e. table salt

The savings in your savings account would fall under which of the following? a. prosperity b. discretionary income c. disposable income d. credit e. wealth

e. wealth

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.

technological assessment