Marketing 3
14. Which of the following statements is true regarding a monopoly? a. It is enjoyed by an organization who is the sole suppliers of a good or service. b. It is common in the telecommunications industry. c. It cannot be achieved temporarily, even through the use of patents and similar legal devices. d. It is the most common type of competition in the U.S. market.
A
16. Which of the following has ended total monopoly protection for most utilities like natural gas, electricity, water, and cable TV service? a. Deregulation movement b. Disinvestment c. Temporary monopoly d. Perfect competition
A
2. Monitoring local newspapers and television news shows for general information relating to a firm's business would be an example of: a. environmental scanning. b. economic analysis. c. socio-political manipulation. d. technological development.
A
21. Which of the following is an example of indirect competition? a. A Sony home entertainment system competing with a Jacuzzi hot tub b. An ExxonMobil station opening across the street from a Shell retail outlet c. Competition among Verizon, AT&T, and T-Mobile d. The purchase of a Honda Accord competing with a Toyota Camry
A
23. Last summer, the Thomas family had to decide whether to buy a new car, go to Disney World, or remodel their basement. They chose the vacation. This illustrates: a. that competition can be defined in terms of dissimilar products vying for a limited supply of discretionary buying power. b. how the most direct form of competition plays a role in a consumer's decision making. c. how competition for essential items leaves unlimited discretionary funds for non-essentials. d. that there can be no competition among dissimilar products.
A
29. The Robinson-Patman Act was passed to: a. provide legal protection to individual merchants against competition from larger chain stores. b. increase competition in the telecommunications and utilities industry by deregulation. c. protect consumers by specifying safety standards for products. d. maintain a competitive environment by prohibiting monopolization.
A
35. Which of the following was the prime reason behind the formation of regulations aimed at protecting competitors? a. To provide legal protection to independent merchants against competition from larger chain stores b. To reduce the concentration of industry power in the hands of a small number of competitors c. To increase competition in industries like telecommunications, utilities, transportation, and financial services by discontinuing many regulations d. To permit firms to expand their service offerings to new markets by discontinuing many regulations
A
40. Which of the following acts gives the FTC jurisdiction over false and misleading advertising? a. The Wheeler-Lea Act b. The Clayton Act c. The Robinson-Patman Act d. The Consumer Product Safety Act
A
41. Which of the following bans the purchase of domain names that are identical or confusingly similar to existing registered trademarks? a. The Anticybersquatting Consumer Protection Act b. The Identity Theft and Assumption Deterrence Act c. The Antitrust Act d. The Privacy Protection Act
A
46. The Council of Better Business Bureaus is a national organization devoted to consumer service and _____. a. business self-regulation b. deregulation c. corporate lobbying d. socially responsible investing
A
47. JP Video Rentals is offering a "Rent 2 get 1 free" video rental coupon. They have been accused of deceptive advertising throughout the U.S. Which division of the Council of Better Business Bureaus is designated to handle such cases? a. The National Advertising Division b. The Advertising Standards Authority c. The Direct Marketing Association d. The Institute of Sales Promotion
A
52. When marketers offer new products, increase their promotional efforts, and expand their distributional limits, it is a sign of: a. low inflation and low unemployment. b. low inflation and high unemployment. c. high inflation and high unemployment. d. high inflation and low unemployment.
A
55. Which of the following stages in the business cycle forces businesses to hold down costs, trim payrolls, and cut down travel costs in order to earn profits and cope with uncertain consumer demand? a. Recovery b. Growth c. Prosperity d. Maturity
A
58. Which of the following usually indicates a strong economy? a. Growth in services such as banking and restaurants b. Cautious spending by businesses and consumers c. A focus on basic, functional products with lower price tags d. Increase in purchasing power coupled with uncertain consumer demand
A
6. The goal of _____ is to analyze information and decide whether the identified trends represent significant opportunities or pose major threats to the company. a. environmental scanning b. green marketing c. benchmarking d. social marketing
A
60. It is believed that marketers need to reevaluate their strategies and concentrate on their most promising products during the _____ stage of the business cycle. a. recession b. recovery c. maturity d. prosperity
A
63. _____ can lead to a damaging downward spiral, causing a freefall in business profits, lower returns on most investments, and widespread job layoffs. a. Deflation b. Lower interest rates c. Inflation d. A federal budget surplus
A
71. Which technology creates a common interface for data to be carried across networks between different devices? a. IMS b. Wi-Fi c. VoIP d. RFID
A
72. Which of the following protects the consumer by exerting legal, moral, and economic pressures on business and government? a. Consumerism b. Corporate branding c. Socialism d. Capitalism
A
9. The Coffee Cup, a popular coffee chain in Switzerland, is trying to expand its business into Canada. It decides to enter into a partnership with a Canadian bookstore chain to set up coffee shops inside bookstores, an arrangement which will benefit both firms. This type of partnership that helps to create a competitive advantage in a new market is known as a _____. a. strategic alliance b. franchising agreement c. joint venture d. buy out
A
67. Baier Oil Co. encourages consumers to reduce oil consumption by engaging in environmentally friendly commuting through its promotional campaigns. It also provides tips for people to employ green commuting. These measures employed by the company to reduce the demand for oil shows that they are engaging in: a. socially responsible investing. b. demarketing. c. product redesigning. d. green marketing.
B
69. A leading e-Learning company is expanding its operations in Japan. To ensure smooth communication between branches, it needs a communication technology which provides facilities such as call plans, call waiting, and three way calling. Additionally it would like to keep costs low. Which technology should it adopt? a. IMS b. VoIP c. JIT d. RFID
B
74. The four basic consumer rights are: the right to be informed, the right to be heard, the right to be safe, and: a. the right to feedback. b. the right to choose freely. c. the right to sue. d. the right to demand.
B
8. Alliances are considered essential in countries where: a. markets are monopolistic in nature. b. laws require foreign firms doing business there to work with local companies. c. partners combine resources and capital to create competitive advantages in an established market. d. efforts are required to achieve organizational objectives by predicting and influencing the technological environments.
B
80. Bank of Norasmus is one of the few banks that provides credit to disadvantaged communities. These loans are used for housing, small business creation, and education or personal development. Such an organization is said to be involved in _____. a. credit based investing b. socially responsible investing c. sustainability d. environmental management
B
82. Jen's Dairy markets milk and other milk products that are purely organic and grown using sustainable farming methods. They also have a program under which they recycle used cans of their products. These marketing strategies employed by Jen's Dairy show that they are involved in _____. a. demarketing b. green marketing c. socially responsible investing d. competitive marketing
B
1. The process of collecting information about the external marketing environment to identify and interpret potential trends is called _____. a. market profiling b. target marketing c. marketing management d. environmental scanning
D
70. MedicaPlus, a pharmaceutical company, is finding it difficult to track and locate slow moving medicines. Pharmaceutical distributors have been complaining about the time it takes for their orders to arrive. One technology that can be used effectively to shorten this waiting period, locate, and track items easily is: 70. MedicaPlus, a pharmaceutical company, is finding it difficult to track and locate slow moving medicines. Pharmaceutical distributors have been complaining about the time it takes for their orders to arrive. One technology that can be used effectively to shorten this waiting period, locate, and track items easily is: a. VoIP. b. sorting. c. RFID. d. GPS.
C
73. Jonathan Nash, aged 60, feels young at heart and spends most of his leisure time networking with family and friends online or surfing the Web. He belongs to the baby boom generation and exemplifies _____. a. a social animal b. a generation Xer c. a social media maven d. a Web addict
C
75. As suggested by President John. F. Kennedy, the consumers' right to be _____ states that consumers should be assured that the goods and services they purchase are not injurious with normal use. a. able to choose b. informed c. safe d. heard
C
78. Which of the following ethical issues is associated with firms' product strategies? a. Exclusive territories b. False and deceptive advertising c. Planned obsolescence d. Bait-and-switch advertising
C
79. In marketing, _____ involves accepting an obligation to give equal weight to profits, consumer satisfaction, and social well-being in evaluating a firm's performance. a. green washing b. consumerism c. social responsibility d. demarketing
C
11. Corea Inc., a pharmaceutical company, is involved in the research, development, manufacture, and marketing of prescription medicines. A new drug developed by them has been awarded patent rights by the U.S. Food and Drug Administration. The patent grants them exclusive rights to manufacture and market the drug for 3 years. Based on this information, which of the following statements will be true? a. Corea Inc. will operate in a market with monopolistic competition. b. Corea Inc. will have exclusive rights to produce and market the product forever. c. Corea Inc. will operate in a perfectly competitive market. d. Corea Inc. will have a temporary monopoly in the market for this drug.
D
12. Pharmaceutical companies often get patents granting them the exclusive right to produce and market drug formulations they have developed. These patents are: a. the result of non-compete agreements signed by pharmaceutical firms. b. in violation of ethical principles on which business is based. c. probably of little use because what one firm can patent, another can duplicate. d. rewards for the millions that firms have invested in the research and development process.
D
15. Marketers must constantly monitor their competitors' products, prices, distribution, and promotional efforts because: a. competitors may be violating truth-in-advertising laws. b. it can lower a firm's command over the market price. c. it will help prevent indirect competition. d. firms may need to adjust their marketing mix based on new competing products.
D
17. An industry with only a few large competing firms is called a(n): a. regulated monopoly. b. pure monopoly. c. perfect market. d. oligopoly.
D
26. The _____ component of the marketing environment consists of laws that require firms to operate under competitive conditions and to protect consumer rights. a. economic b. competitive c. social-cultural d. political-legal
D
3. A pharmaceutical company that works with the Food and Drug Administration to create new regulations is practicing: a. strategic planning. b. environmental scanning. c. marketing research. d. environmental management.
D
31. Which of the following is the newest regulatory frontier for federal and state regulators in the United States? a. Protecting competitors b. Industry deregulation c. Antimonopoly d. Cyberspace
D
32. In the context of cybercrime, luring consumers to provide personal information is called _____. a. piracy b. viral marketing c. logging d. phishing
D
45. If a business refuses to comply with a request by the _____, the agency can issue a cease-and-desist order, which gives a final demand to stop an illegal practice. a. Environmental Protection Agency b. Consumer Product Safety Commission c. U.S. Department of Justice d. Federal Trade Commission
D
50. In times of prosperity, marketers respond to consumer buying behavior by: a. launching special value-priced products that are likely to appeal to cost-conscious buyers. b. holding down costs and offering superior services at lower prices. c. lowering prices and increasing promotions that include special offers to stimulate demand. d. offering new products, increasing their promotional efforts, and expanding distribution.
D
54. The Robinson family recently bought a car as they were offered a no-interest financing option. The family's annual vacation was also booked through a discount travel firm. The family has purchasing power, but they prefer to spend their money cautiously like most other families in the country. The above stated instances indicate which stage of the business cycle? a. Depression b. Prosperity c. Recession d. Recovery
D
64. News reports from Zimbabwe indicate that a small pack of locally produced coffee beans costs approximately 1 billion Zimbabwean dollars, an amount that would have bought 60 new cars less than ten years ago in the same country. It can be surmised that Zimbabwe is experiencing extremely high levels of _____ which has spiraled out of control in the past ten years. a. growth b. stagflation c. deflation d. inflation
D
66. The process of reducing consumer demand for a product to a level that a firm can reasonably supply is called __________. a. indirect marketing b. economic marketing c. direct marketing d. demarketing
D
68. _____ leads to new goods and services for consumers, improves existing products, offers better customer service, and often reduces prices through new, cost-efficient production and distribution methods. a. Reintermediation b. Consumerism c. Disintermediation d. Technology
D
76. Marketers' standards of conduct and moral values is termed as _____. a. social marketing b. corporate identity c. green marketing d. marketing ethics
D
77. Which of the following is a critical issue facing governmental agencies regarding ethics in marketing research? a. Personal selling b. Truth in advertising c. Planned obsolescence d. Invasion of personal privacy
D
81. The production, promotion, and reclamation of environmentally sensitive products is called _____. a. social media marketing b. green washing c. demarketing d. green marketing
D
7. To acquire regional expertise and comply with the local laws of a country, international firms often find it desirable to: a. form political action committees. b. export goods and services to that country. c. form strategic alliances with domestic companies in that country. d. relocate manufacturing facilities to that market.
C
13. A market structure in which a single seller dominates trade in a good or service for which buyers can find no close substitutes is called a(n) _____. a. oligopoly b. monopoly c. monopsony d. perfect market
B
22. In the United States, four major music companies receive 80 percent of recording revenues. Such a market structure is termed as a(n) _____. a. monopsony b. oligopoly c. monopoly d. duopoly
B
24. Which of the following helps time-based competitors to improve product quality, reduce costs, and expand product offerings to satisfy new market segments and enhance customer satisfaction? a. Validity and reliability b. Flexibility and responsiveness c. Rigidity and vision d. Profitability and coverage
B
27. The history of U.S. government regulation can be divided into four phases: the antimonopoly period, _____, consumer protection, and industry deregulation. a. protecting trade b. protecting competitors c. protecting cyberspace d. protecting privacy
B
33. When Jonathan was contacted by his insurance firm regarding certain medical claims he had made recently, he realized that someone else had used his name and insurance information without his consent to make false claims for medical services and goods. Which of the following acts will enable Jonathan to take action against the person who stole his personal information? a. The Clayton Act b. The Identity Theft Enforcement and Restitution Act c. The Sherman Antitrust Act d. The Digital Millennium Copyright Act
B
34. The government's Do Not Call Registry that helps consumers to avoid telemarketing calls exempts callers who represent: a. financial institutions. b. not-for-profit organizations. c. service companies. d. insurance companies.
B
36. Artisanal Brands, Inc. markets and distributes a line of specialty, artisanal, and farmstead cheese products in the United States. The company gives bulk discounts to their wholesalers. The result is that smaller stores are getting the products at a higher rate as compared to supermarkets and large shopping chains. These stores will be protected under the _____. a. Sherman Antitrust Act b. Robinson-Patman Act c. Wheeler-Lea Act d. Celler-Kefauver Act
B
37. Which act prohibits restraint of trade and monopolization and identifies a competitive marketing system as a national policy goal? a. The Wheeler-Lea Act b. The Sherman Antitrust Act c. The Federal Trade Commission Act d. The Clayton Act
B
38. Which act prohibits price discrimination in sales to wholesalers, retailers, or other producers? a. The Wheeler-Lea Act b. The Robinson-Patman Act c. The North American Free Trade Agreement d. The Federal Trade Commission Act
B
43. HandyBrands Inc., a consumer goods company, engages in the design, manufacture, sourcing, and sale of apparel essentials in the United States and abroad. They have a very good e-tailing portal. Online shopping constitutes 40 percent of their sales. Recently, they have faced complaints by customers that orders are not getting processed. The reason was the existence of a website with similar content and an identical domain name. HandyBrands Inc. should take the help of the _____. a. Electronic Signature Act b. Anticybersquatting Consumer Protection Act c. Identity Theft and Assumption Deterrence Act d. Credit Card Accountability, Responsibility and Disclosure Act
B
48. Which of the following agencies supports consumer rights through its initiative of informing consumers of their right to modify or discontinue receiving solicitations? a. The Federal Trade Commission b. The Direct Marketing Association c. The Council of Better Business Bureaus d. The Consumer Product Safety Commission
B
51. During which phase in the business cycle do marketers consider lowering prices and increasing promotions that include special offers to stimulate demand? a. Prosperity b. Recession c. Growth d. Maturity
B
56. In Australia, consumer spending in the past few months has seen an upward trend, and buyers are willing to spend more on premium brands. From this pattern, we can say that Australia is in the _____ stage of the business cycle. a. recovery b. prosperity c. recession d. depression
B
59. _____ are used by the federal government to control extreme fluctuations in the business cycle that can lead to a depression. a. Deregulation b. Monetary and fiscal policies c. Stringent environmental policies d. Mergers and acquisitions
B
65. It has been seen that periods of major innovations often lead to: a. reduced personal consumption. b. higher standards of living. c. decreased annual spending. d. reduced discretionary income.
B
10. Friums & You, a Canadian firm, together with its subsidiaries, manufactures and markets snacks, confectionery, and quick meal products worldwide. The firm has been trying to expand its business into China. As Chinese laws require foreign firms to do business with local companies, Friums & You will have to be involved in a _____ to start operations in China. a. limited liability partnership b. buyout c. strategic alliance d. hostile takeover
C
18. The airline industry in a particular country has only four dominant players. Large capital investments and government regulations often prevent new players from entering the market. Based on this information, the structure of the airline industry in this country is _____. a. a duopoly b. perfectly competitive c. an oligopoly d. a monopoly
C
19. A(n) _____ is a structure that refers to a limited number of sellers in an industry in which high start-up costs form barriers to keep out new competitors while ensuring that corporations remain innovative. a. duopoly b. monopoly c. oligopoly d. monopsony
C
20. Indirect competition occurs among marketers of: a. similar products. b. products that satisfy different needs. c. products that can be easily substituted. d. products that belong to different categories.
C
25. Lockheed Martin won the largest military contract ever by proving it could be the first company to develop and fly a new model plane. This illustrates the importance of _____. a. rapid prototyping of new products b. demarketing c. time-based competition d. the legal environment
C
28. In which phase of U.S. government regulation were major laws such as the Sherman Antitrust Act, the Clayton Act, and the Federal Trade Commission Act passed to maintain a competitive environment? a. The phase aimed at protecting competitors b. The industry deregulation phase c. The antimonopoly period d. The consumer protection phase
C
30. Which of the following phases in the history of U.S. government regulation sought to increase competition among industries by permitting them to expand their services into the new markets? a. The consumer protection phase b. The antimonopoly period c. The industry deregulation phase d. The phase aimed at protecting competitors
C
39. The Federal Trade Commission Act is a law that: a. prohibits copying or downloading of digital files. b. facilitates trade by removing tariffs and other trade barriers. c. prohibits unfair methods of competition. d. restricts practices such as exclusive dealing, tying contracts, and interlocking boards of directors.
C
4. When Kevin analyzes recent data from the U.S. Census Bureau to uncover new markets for his firm's product, he is engaging in: a. demarketing. b. time-based competition. c. environmental scanning. d. marketing management.
C
42. Which law protects intellectual property rights by prohibiting the copying or downloading of digital files? a. The Real ID Act b. The Electronic Signature Act c. The Digital Millennium Copyright Act d. The Identity Theft and Assumption Deterrence Act
C
44. The Telecommunications Act of 1996 was passed to: a. set annual fees for telemarketers to access the Do Not Call Registry. b. create the national Do Not Call Registry prohibiting telemarketing calls to registered numbers. c. deregulate the telecommunication industry by removing barriers to competition. d. prohibit the sale of cell phone records.
C
49. Which of the following components of the marketing environment consists of factors that influence consumer buying power and marketing strategies? a. Competitive environment b. Cultural environment c. Economic environment d. Regulatory environment
C
5. Achieving organizational objectives by predicting and influencing the competitive, political-legal, economic, technological, and social-cultural environment is referred to as _____. a. research and development b. marketing research c. environmental management d. SWOT analysis
C
53. Which of the following is a trend usually observed during an economic depression? a. Consumers are willing to spend more for premium versions of well-known brands. b. Consumers have money to spend, but caution often restrains their willingness to buy. c. Consumers focus on more basic, functional products that carry lower price tags. d. Businesses offer new products, expand distribution, and raise prices to widen profit margins.
C
57. In the recovery period, which type of firms have the best possible chance to create loyal customers by providing exceptional service? a. Brands b. Sick units c. Providers of superior services at lower prices d. Price skimmers
C
61. Which of the following devalues money and reduces its purchasing power through persistent increase in prices? a. Disinflation b. Stagflation c. Inflation d. Deflation
C
62. The amount of money available with people after buying necessities such as food, clothing, and housing is referred to as _____. a. basic income b. gross income c. discretionary income d. personal income
C