Marketing Chapter 3- Quiz

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

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

False

The major source of cultural values is religion. a. True b. False

False

A lawsuit was filed against Naked Juice because of its claims that it is "natural." The lawsuit claimed that because it contained synthetic ingredients, it did not fit the definition of "natural" and was therefore misleading. Naked Juice agreed to drop the "natural" claim. According to critics, Naked Juice was violating consumers' right to _______________.

be informed

Every year since 2010 Jersey Mike's has hosted an annual one-day-event where 100% of their sales are donated to a charity of the store owner's choice. In 2016, 180+ charities were supported nationwide by raising more than $4 million from the sales of the store's 1,500 locations. These events that Jersey Mike's funds every year are best described as which of the following? a. strategic philanthropy b. cause-related marketing c. marketing ethics d. stakeholder orientation

cause-related marketing

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

consumerism

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. ethical values b. cultural values c. demographics d. consumerism e. diversity characteristics

cultural values

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

delta airlines

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

dynamics

Charles works as a marketer at Hewlett-Packard. He has just spent the last few weeks collecting information about environmental forces that will influence 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. technology assessment b. SWOT analysis c. competitive scanning d. environmental analysis e. environmental scanning

environmental analysis

__________________ is the process of collecting information about forces in the marketing environment.

environmental scanning

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

federal trade commission

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

fertility rates are at their lowest

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

greyhound bus sytem

What is the significance of the 2010 Supreme Court decision, Citizens United v. Federal Election Commission? a. It ruled that individuals are authorized to donate as much money as they like to candidate elections. b. It ruled that the government has the authority to place limits on corporate spending in candidate elections. c. It ruled that politicians must cap the donations they receive from companies. d. It ruled that citizens have the right to sue firms for donating large sums to candidates. e. It ruled that the government is not authorized to ban corporate spending in candidate elections

it ruled that the government is not authorized to ban corporate spending in candidate elections

Principles and standards that define acceptable conduct in marketing as determined by various stakeholders are known as ___________________. a. marketing citizenship b. strategic philanthropy c. social responsibility d. marketing ethics e. cause-related marketing

marketing ethics

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

oligopoly; do the same

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

political

Many marketing managers attempt to influence and shape environmental forces. This is known as the ______________ approach.

proactive

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

recession

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. consumerism b. self-regulation c. obedience to relevant laws d. philanthropy e. technology assessment

self-regulation

Which of the following is true about social responsibility? a. Social responsibility will eliminate ethical issues in marketing. b. Social responsibility improves marketing performance. c. Social responsibility will always be profitable. d. Social responsibility results in fewer marketing problems. e. Social responsibility automatically reduces costs.

social responsibility improves marketing performance

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

table salt

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. legal and regulatory c. sociocultural d. technological e. political

technological

A _______________ 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.

technology assessment

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

true

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

wealth