Mktg 351 ch3 total
26. The Coca-Cola Company has recognized the significant increase in population diversity within the U.S. soft-drink market. Which one of the following best illustrates the company's integration of this knowledge into its marketing strategy? a. Ads featuring nostalgic Americana b. Bonus coupons in Coca-Cola twelve-packs c. Ads featuring Hispanic actors and Tejano music d. Ads in The New Yorker and Reader's Digest e. Ads aimed at children
Ads featuring Hispanic actors and Tejano music
25. By the turn of the twentieth century, the population of the United States had shifted to three large racial and ethnic groups. These groups are a. African Americans, Hispanics, and Caucasians. b. Asians, African Americans, and Caucasians. c. Asians, African Americans, and Hispanics. d. African Americans, American Indians, and Caucasians. e. Hispanics, American Indians, and Caucasians.
African Americans, Hispanics, and Caucasians.
124. Which of the following companies would probably be most interested in tracking discretionary income levels? a. Safeway food stores b. BMW automobiles c. Gulf States Utilities d. General Mills e. Florida Orange Growers
BMW automobiles
177. Scenario 3.1 Use the following to answer the question. 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 skateboards on sale one hour after the store opened and found that none were left. Where should he file a complaint? a. Federal Advertising Commission b. National Advertising Review Board c. Consumer Product Safety Commission d. Better Business Bureau e. Office of Consumer Affairs
Better Business Bureau
74. ____ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other. a. Oligopolic b. Total budget c. Generic d. Product e. Brand
Brand
119. Which category of income are marketers most interested in? a. Wealth b. Disposable income c. Discretionary income d. Total income e. Extra income
Disposable income
172. Which of the following is an advantage that self-regulatory agencies such as the BBB and the NARB have over governmental laws and regulatory agencies? a. Firms must strictly abide by the rulings of self-regulatory agencies. b. Establishment and implementation are usually less expensive. c. They have better tools to enforce their rulings. d. Guidelines are often stricter and create greater compliance from firms. e. Money is very rarely an issue in enforcing decisions of self-regulatory agencies.
Establishment and implementation are usually less expensive.
103. Product competitors market products with similar features and benefits to the same customers at similar prices. a. True b. False
False
94. Pure competition is a common competitive environment. a. True b. False
False
108. In a period of economic recovery, the best marketing strategy for FedEx would be characterized by which of the following features? a. Flexibility b. Aggressiveness c. Austerity d. Retrenchment e. Boldness
Flexibility
70. Which of the following is not at the generic competitor level for Ford's Expedition sport utility vehicle? a. Ford's Escape SUV b. Enterprise car rental c. Harley Davidson motorcycle d. Schwinn mountain bike e. Taxicab ride
Ford's Escape SUV
117. Why are marketers interested in consumers' levels of disposable income? a. It accurately predicts future buying power. b. It increases current buying power. c. It is what is left after taxes and savings to buy luxuries with. d. It is a ready source of buying power. e. It is essential for forecasting future business trends.
It is a ready source of buying power.
154. Which of the following provides protection for and regulates brand names, brand marks, trade names, and trademarks? a. Sherman Antitrust Act b. Clayton Act c. Robinson-Patman Act d. Lanham Act e. Celler-Kefauver Act
Lanham Act
77. What type of competitive structure exists when a firm produces a product that has no close substitutes? a. Monopoly b. Oligopoly c. Monopolistic competition d. Pure competition e. Mixed competition
Monopoly
83. What type of competitive structure exists when just a few sellers control a large portion of the supply of a product? a. Monopoly b. Oligopoly c. Monopolistic competition d. Mixed competition e. Pure competition
Oligopoly
53. Toyota has developed aluminum car bodies that are 100% recyclable and light enough to help conserve fuel. What kind of response is this to environmental forces? a. Proactive b. Competitive c. Reactive d. Inactive e. Controllable
Proactive
69. ____ competitors are those that compete in the same product class, but their products have different features, benefits, and prices. a. Total budget b. Generic c. Brand d. Product e. Price
Product
175. Scenario 3.1 Use the following to answer the question. 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 Meyers Sporting Goods with its price increase. Which of the following acts prohibits this type of business behavior? a. Sherman Antitrust b. Wheeler-Lea c. Robinson-Patman d. Celler-Kefauver e. Consumer Goods Pricing
Robinson-Patman
171. Which of the following statements about self-regulatory programs is false? a. Self-regulatory programs are usually less expensive than governmental regulatory programs. b. Self-regulatory programs' guidelines generally are more realistic and operational. c. Many nongovernmental self-regulatory programs have neither the tools nor the authority to enforce guidelines. d. Self-regulatory guidelines generally are stricter than governmental regulatory programs. e. 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.
Self-regulatory guidelines generally are stricter than governmental regulatory programs.
152. Which of the following acts was enacted to prevent businesses from restraining trade and monopolizing markets? a. Sherman Antitrust Act b. Clayton Act c. Federal Trade Commission Act d. Robinson-Patman Act e. Wheeler-Lea Act
Sherman Antitrust Act
153. If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating the a. Wheeler-Lea Act. b. Clayton Act. c. Robinson-Patman Act. d. Sherman Antitrust Act. e. Celler-Kefauver Act.
Sherman Antitrust Act.
4. While playing soccer, Bryan suddenly fell and broke his arm. Needing to get to the hospital, he was not only interested in the nearest location, but also the shortest emergency room wait time. He remembered seeing a billboard for the Cleveland Clinic promoting their time-text service where he could call the number GET-TXT-TIME and they would text him the approximate waiting time at the closest three hospital locations. The Cleveland Clinic is providing enhanced service to its patients by capitalizing on which environmental force? a. Economic b. Competitive c. Political d. Legal and regulatory e. Technological
Technological
200. Which of the following statements is true? a. Political officials cannot influence how much a government agency purchases and from whom. b. The U.S. Supreme Court ruled that the government is not authorized to ban corporate spending in candidate elections. c. Company-sponsored political advertising can only focus on topics and not on candidates. d. Political officials cannot accept direct corporate campaign contributions. e. Companies cannot participate in the political process through lobbying.
The U.S. Supreme Court ruled that the government is not authorized to ban corporate spending in candidate elections.
80. Which of the following firms would be most likely to have a monopoly for its competitive environment? a. TimeWarner Cable TV b. Mitchell Trucking c. American Airlines d. Rogers Plumbing e. TruGreen Lawn Care
TimeWarner Cable TV
11. Technology can help marketers become more productive. a. True b. False
True
129. The strength of one's buying power depends partially on the state of the economy. a. True b. False
True
136. An individual can have a high income and very little wealth. a. True b. False
True
166. Which of the following industries is most commonly regulated by state regulatory agencies? a. Automobile manufacturers b. Cigarette producers c. Clothing manufacturers d. Television networks e. Utility companies
Utility companies
126. Which of the following terms refers to consumers' propensity to buy? a. Disposable income b. Discretionary income c. Buying power index d. Buying power e. Willingness to spend
Willingness to spend
79. The Decca Electric Corporation produces light bulbs that are used in refrigerator manufacturing. Currently, only three other companies produce bulbs used in the production of refrigerators, with Decca as the leader in market share. In this case, Decca Electric Corporation would be considered a. an oligopoly. b. a monopoly. c. involved in monopolistic competition. d. involved in perfect competition. e. involved in a perfect oligopoly.
an oligopoly.
85. The tobacco industry in the United States is dominated by three large companies. When any one of these companies changes its price on tobacco products, the other two companies quickly adjust their prices to match it. From these characteristics, the tobacco industry could best be described as a. price sensitive. b. opportunistic. c. monopolistic competition. d. an oligopoly. e. a monopoly.
an oligopoly.
50. When PepsiCo takes the information collected through research and attempts to assess and interpret what it means for its soft-drink marketing efforts, PepsiCo is engaged in environmental a. scanning. b. forces. c. management. d. manipulation. e. analysis.
analysis.
67. Companies that market products with similar features, benefits, and prices to the same customer group are known as ____ competitors. a. generic b. product c. brand d. total budget e. monopolistic
brand
71. Marketers primarily focus their environmental analysis on ____ competitors. a. brand b. product c. total budget d. generic e. monopolistic
brand
49. According to the textbook, a manager's duties in an environmental analysis include a. checking information for accuracy, resolving inconsistencies, and assigning significance to the findings. b. observation and assessment. c. conducting research, assessment, and reporting. d. observation, market research, and fact finding. e. checking the company database, conducting research, and reporting.
checking information for accuracy, resolving inconsistencies, and assigning significance to the findings.
66. When marketers define their target market, they simultaneously establish a set of a. technologies. b. monopolies. c. competitors. d. government regulations. e. sociocultural forces.
competitors.
145. Emily got a new job that pays extremely well. This is good because two years ago she was forced to go into bankruptcy when she couldn't repay her debt. She would like to purchase a used car so she can drive to work. However, she knows it will be hard to get the bank to provide her with a car loan at favorable interest rates due to her recent bankruptcy. She has therefore saved her money diligently so she will have enough to pay for the car outright. In this case, Emily lacks a. buying power b. credit c. discretionary income d. willingness to buy e. income
credit
114. Consumer confidence is at a low during periods of a. recession. b. prosperity. c. recovery. d. slowdown. e. depression.
depression.
89. The best approach for a company to take when monitoring its competitors is a. watching for increases and decreases in competitors' prices and matching them. b. analyzing all information that is readily available about competitors. c. sending employees to competitors' offices and factories to observe their actions. d. developing a system for gathering ongoing information about competitors. e. reading important business publications such as The Wall Street Journal.
developing a system for gathering ongoing information about competitors.
51. After Home Depot gathers information related to its marketing environment, it attempts to define current environmental changes and predict future changes. This determines possible opportunities and threats facing the company. It illustrates the process that is called a. environmental scanning. b. survey of environment. c. marketing. d. environmental analysis. e. marketing information processing.
environmental analysis.
44. Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in a. environmental analysis. b. competitive forces. c. environmental scanning. d. procompetitive legislation. e. self-regulatory forces.
environmental scanning.
48. SiriusXM Radio is concerned about how the increasing use of smartphones will affect the future sales of its satellite radio service. The company decides to gather information about the changing trends in music access and delivery to prepare for this trend. SiriusXM's process is called a. environmental scanning. b. target marketing. c. surveying. d. environmental analysis. e. dynamic responsiveness.
environmental scanning.
158. The 1990 Nutrition Labeling and Education Act directly prohibits a. exaggerated claims made by health and fitness products. b. putting the words "cholesterol-free" on any food package. c. putting nutritional information on most food products. d. exaggerated health claims on food packages. e. the use of any health claim on food packaging.
exaggerated health claims on food packages.
121. Discretionary income is associated with all of the following except a. automobiles. b. education. c. pets. d. furniture. e. food.
food.
120. A person's buying power is a function of a. disposable income. b. past income, natural resources, and financial resources. c. wages, rents, and investments. d. income, wealth, and credit. e. discretionary income.
income, wealth, and credit.
118. The amount of money received through wages, rents, investments, pensions, and subsidies is called a. income. b. wealth. c. discretionary income. d. prosperity. e. credit.
income.
125. When using credit to make purchases, consumers are a. decreasing current buying power and increasing future buying power. b. increasing their present discretionary income to extend purchasing power. c. putting themselves at significant risk of financial disaster. d. forgoing the accumulation of wealth to increase current income. e. increasing current buying power at the expense of future buying power.
increasing current buying power at the expense of future buying power.
176. Scenario 3.1 Use the following to answer the question. 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. If the Federal Trade Commission believes that Soljur Sports is acting in violation of the law, the first move for the FTC is to a. issue a cease-and-desist order. b. issue a complaint stating that the business is in violation of the law. c. seek a monetary penalty. d. issue negative publicity about the company. e. contact the sporting goods manufacturers association
issue a complaint stating that the business is in violation of the law.
82. When a firm has many potential competitors and tries to develop a marketing strategy to differentiate its products from the competitors' products, a(n) ____ structure exists in the competitive environment. a. oligopoly b. monopoly c. pure competition d. oligopolistic competition e. monopolistic competition
monopolistic competition
86. 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. a monopoly. b. an oligopoly. c. monopolistic competition. d. pure competition. e. faceted competition.
monopolistic competition.
159. Consumer protection legislation deals with all of the following legal concerns except a. consumer safety. b. sale of hazardous products. c. monopolistic practices. d. information disclosure. e. health claims on food packages.
monopolistic practices.
78. The type of competitive structure that exists in the case where there are almost no substitutes for a product is a(n) a. monopolistic competition. b. oligopoly. c. pure competition. d. monopoly. e. noncompetition.
monopoly.
170. The Better Business Bureau is probably the best-known a. nongovernmental regulatory group. b. state-operated enforcement agency. c. national evaluator of advertisements. d. federal regulatory group. e. self-regulatory unit operating at the national level.
nongovernmental regulatory group.
45. Three primary methods of collecting information for environmental scanning are a. marketing research, company records, and advance orders. b. secondary sources, company records, and observation. c. executive knowledge, media, and marketing research. d. observation, secondary sources, and marketing research. e. company database, executive knowledge, and research.
observation, secondary sources, and marketing research.
76. The four major competitive structures are a. monopolies, oligopolies, oligopolistic monopolies, and pure competition. b. pure competition, heavy competition, moderate competition, and light competition. c. brand, product, total budget, and generic. d. oligopolies, monopolies, monopolistic competition, and pure competition. e. monopolies, limited competition, oligopolistic competition, and pure competition.
oligopolies, monopolies, monopolistic competition, and pure competition.
81. Most marketers operate in a competitive environment of either a. oligopoly or monopoly. b. oligopoly or monopolistic competition. c. oligopoly or pure competition. d. monopoly or pure competition. e. pure competition or monopolistic competition.
oligopoly or monopolistic competition.
199. Textile companies historically face issues concerning the use of child labor in foreign countries and the various regulations created concerning this labor. The type of marketing environment forces executives for these companies are most likely to try to influence are ____ forces. a. economic b. competitive c. political d. environmental e. sociocultural
political
206. A firm wants to build a subsidiary in the Middle East. However, it is apprehensive because of protests in some Middle Eastern countries and the violence in Syria. It does not know if it should take the risk of expanding. Which type of barrier does this situation represent? a. economic b. competitive c. legal and regulatory d. political e. sociocultural
political
155. Procompetitive laws are those designed to a. preserve competition. b. protect the consumer. c. ensure product safety. d. reduce competition. e. limit business lobbying of government officials.
preserve competition.
52. Marketers who attempt to influence and change the various environmental forces have a(n) ____ response to these forces. a. reactive b. inactive c. variable d. positive e. proactive
proactive
109. Assuming that inflation is low, high buying power characterizes the ____ stage of the business cycle. a. prosperity b. depression c. recovery d. succession e. recession
prosperity
88. The two least common competitive structures are a. monopolies and oligopolies. b. pure competition and monopolies. c. monopolistic competition and monopolies. d. pure competition and no competition. e. oligopolies and pure competition.
pure competition and monopolies.
84. Changes Salon is part of the hair and personal care service industry. In what type of competitive environment is Changes Salon most likely operating? a. pure competition. b. a monopoly. c. monopolistic competition. d. oligopolistic competition. e. an oligopoly.
pure competition.
54. While Silk Soymilk engages in environmental scanning and analysis, the company is more likely to change its products and marketing strategies to adapt to environmental forces rather than trying to influence these forces. Silk Soymilk has a(n) ____ approach to marketing environmental forces. a. inactive b. reactive c. proactive d. negative e. variable
reactive
55. Marketers who view political forces as being beyond their control are taking a(n) ____ response toward these forces. a. reactive b. aggressive c. proactive d. competitive e. liberal
reactive
111. Total buying power declines during periods of economic a. recovery. b. prosperity. c. recession. d. uncertainty. e. expansion.
recession.
112. Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economic a. recovery. b. prosperity. c. recession. d. uncertainty. e. expansion.
recession.
113. Publix Supermarket is revising its marketing plan for the upcoming quarter. Publix typically focuses on its wide variety of products and its high-quality customer service, having very few weekly "sales." However, during the upcoming quarter, Publix plans to focus on price and value, and promote weekly "values" instead. Publix is most likely in a(n) a. inflation period. b. prosperity period. c. recession. d. depression. e. recovery period.
recession.
115. Consumer confidence and willingness to spend begins to increase during periods of ____, and marketers must remain very flexible to make the necessary adjustments. a. depression b. prosperity c. recovery d. growth e. recession
recovery
160. The Children's Online Privacy Protection Act prohibits websites and Internet providers from a. selling products to children under the age of 18. b. seeking personal information from children under the age of 13. c. selling products to children under the age of 12. d. doing research about the buying habits of children under 15. e. selling products to children under the age of 15.
seeking personal information from children under the age of 13.
168. The Pharmaceutical Research and Manufacturers of America sets guidelines for its member firms to follow regarding the use of unethical practices. Thus, it is engaging in a. legislation. b. lobbying. c. self-regulation. d. environmental scanning. e. trade restraint.
self-regulation.
116. The strength of a person's "buying power" depends on economic conditions and a. level of income. b. size of resources that can be traded in an exchange. c. how much a consumer will buy. d. a consumer's spending pattern. e. levels of median wealth.
size of resources that can be traded in an exchange.
24. People for the Ethical Treatment of Animals (PETA) has demonstrated against the sale of coats made of animal furs. PETA's efforts to change shoppers' attitudes represent a ____ force for fur retailers. a. technological b. political c. sociocultural d. self-regulatory e. controllable
sociocultural
164. The FTC can issue a cease-and-desist order, which is an injunction to a. report to the FTC immediately. b. stop doing whatever caused the complaint. c. appear before the courts. d. pay for damages caused by negligence of the firm. e. close down the firm until further notice.
stop doing whatever caused the complaint.
2. Technology is a. the application of scientific knowledge to build products that customers desire. b. the application of knowledge and tools to solve problems and perform tasks more efficiently. c. applied sciences. d. one of the weakest marketing environment forces. e. the result of research performed primarily by universities.
the application of knowledge and tools to solve problems and perform tasks more efficiently.
3. More than half of the research of technology created is paid for by a. corporations. b. state and local governments. c. the federal government. d. large universities. e. private investors.
the federal government.
72. In today's marketing environment, competitors can take on many forms. For example, Diet Coke can be seen as a competitor to Wrigley's Doublemint chewing gum. In this circumstance, these two products are described as ____ competitors. a. generic b. product c. total budget d. monopolistic e. pure
total budget
73. Companies that compete for the same limited financial resources of the same customers are known as ____ competitors. a. oligopolic b. total budget c. generic d. product e. brand
total budget
6. Technology assessment is a. measuring how much technology has been incorporated into an organization. b. trying to foresee the effects of new products and processes on the firm's operation and on society in general. c. assessing how much technology one wants to incorporate into a company in the future. d. judging how a firm's products affect society. e. weighing the cost of new technology to determine whether a firm can afford to use it.
trying to foresee the effects of new products and processes on the firm's operation and on society in general.
123. The accumulation of past income, natural resources, and financial resources is known as a. income. b. collected income. c. credit. d. wealth. e. savings.
wealth.
146. Chad has a good-paying job. However, even though he has not received any official confirmation, Chad suspects that his job might be cut in the near future. Rumors in the grapevine hint that the company is going to go through massive lay-offs due to declining revenues. As a result, Chad has decided to forgo buying a house until he has a better idea of his job status. He has a lot of savings, but Chad knows he might need them if he becomes unemployed. In this case, Chad lacks a. willingness to buy b. credit c. disposable income d. discretionary income e. buying power
willingness to buy
147. Jameson receives $50,000 in income. He paid $10,000 in taxes, $7,500 in rent and utilities, $5,000 on food, $2,000 in clothing, and $1,000 on a new couch. Based on these calculations, Jameson's discretionary income is a. $40,000. b. $28,000. c. $24,500. d. $35,500. e. $25,500.
$25,500.
27. In addition to the proliferation of new organic brands, many conventional marketers have introduced organic versions of their products, including Orville Redenbacher, Heinz, and even Walmart. These firms are responding to changes in a. federal law. b. cultural values. c. demographics. d. consumerism. e. technological forces.
cultural values.
43. To monitor changes in the marketing environment effectively, marketers must engage in a. environmental scanning and analysis. b. economic scanning c. self-regulatory analysis d. marketing research analysis e. information collecting
environmental scanning and analysis.
193. Refer to Scenario 3.3. The Consumer Financial Protection Bureau is an example of a a. federal regulatory agency. b. state regulatory agency. c. self-regulatory group. d. trade organization group.
federal regulatory agency.
100. Jerry is a corn farmer. He sells his soybeans to stores such as Albertson's. What type of competitive structure does Jerry most likely operate in? a. oligopolistic competition b. monopolistic competition c. oligopoly d. pure competition e. monopoly
pure competition
169. Jared Bledsoe hired Green Gardens, a local landscape firm, to plant trees and shrubs in his front yard. The landscape is beautiful when the company is done; however, in just a few days many of the plants begin to die. When Jared complained to the manager of Green Gardens, the manager says that Jared must have done something to them that caused the plants to die, such as overwatering them. Green Gardens doesn't have any money-back guarantees. Jared is angry that he can't get a refund or replacement. At this time, Jared's best course of action would be to contact the a. local Chamber of Commerce. b. Federal Trade Commission. c. Sherman Commission. d. Better Business Bureau. e. local Small Claims Court.
Better Business Bureau.
163. After several children became ill while playing with toys imported from outside the United States, medical researchers found several illegal chemicals, including lead in the paint. These toys were sold primarily through websites on the Internet. Which of the following agencies would most likely have jurisdiction over the problem with lead in the paint of children's toys? a. Consumer Product Safety Commission b. Children's Online Protection Act c. Food and Drug Administration d. Environmental Protection Agency e. National Advertising Review Board
Consumer Product Safety Commission
12. Firms always adopt and use new technology. a. True b. False
False
128. A recession is characterized by extremely high unemployment, very low wages, minimal total disposable income, and lack of consumer confidence in the economy. a. True b. False
False
130. An individual's after-tax income is called his or her discretionary income, which is used for spending and/or saving. a. True b. False
False
131. Disposable income is used to pay taxes, spend, and save. a. True b. False
False
133. Decreases in taxes lead to decreases in disposable income. a. True b. False
False
135. Credit increases future buying power. a. True b. False
False
138. If a person has buying power, he or she is influenced only by a product's absolute price. a. True b. False
False
182. All marketers interpret laws and regulations conservatively and strictly to avoid violating a vaguely worded law. a. True b. False
False
184. The Food and Drug Administration influences marketing activities the most. a. True b. False
False
188. A good example of a government regulatory group at the local level is the Better Business Bureau. a. True b. False
False
189. All members of an industry are bound to follow trade association guidelines. a. True b. False
False
202. Political forces are beyond the control of marketers, and so they can only react to them. a. True b. False
False
207. Political forces and legal and regulatory forces are the same thing. a. True b. False
False
30. The proportion of the U.S. population that will be over 65 years of age is expected to decline by the year 2050. a. True b. False
False
31. The number of single men and women living alone is declining. a. True b. False
False
33. Changes in cultural values have little effect on people's needs for products. a. True b. False
False
35. The major forces that make up the consumerism movement are consumer organizations and business organizations. a. True b. False
False
41. Sociocultural values include cultural values, demographics, and the impact of technology on society. a. True b. False
False
64. Using surveys to conduct marketing research is an example of environmental analysis. a. True b. False
False
9. Technological changes do not directly affect what, how, when, and where products are marketed. a. True b. False
False
92. A monopoly exists when a firm with many potential competitors attempts to develop a marketing strategy to differentiate its products. a. True b. False
False
93. An oligopoly exists when a firm offers a product that has no close substitutes, making the firm the sole source of supply. a. True b. False
False
165. Which of the following agencies regulates marketing activities the most? a. Environmental Protection Agency b. Food and Drug Administration c. Federal Trade Commission d. Better Business Bureau e. National Advertising Review Board
Federal Trade Commission
162. Of all the federal regulatory units, the ____ most heavily influences marketing activities. a. Food and Drug Administration (FDA) b. Federal Communications Commission (FCC) c. Environmental Protection Agency (EPA) d. Federal Trade Commission (FTC) e. Federal Power Commission (FPC)
Federal Trade Commission (FTC)
29. Scenario 3.2 Use the following to answer the question. 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, 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, prefabricated 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? a. Emphasize the technology of the i-House. b. Focus on the "green" qualities of the home and target environmentally-conscious individuals. c. Significantly reduce advertising expenditures to create an exclusive image. d. Decrease production until the economy improves. e. Significantly reduce the prices on the company's product offerings.
Focus on the "green" qualities of the home and target environmentally-conscious individuals.
161. Which of the following are the most frequently sentenced organizational crimes? a. False advertising and price discrimination b. Price discrimination and fraud c. Fraud and antitrust violations d. Price fixing and antitrust violations e. Fraud and price fixing
Fraud and antitrust violations
68. ____ competitors provide very different products that satisfy the same basic customer need. a. Brand b. Generic c. Total budget d. Product e. Marketing
Generic
178. Scenario 3.1 Use the following to answer the question. 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 a customer has a complaint against Soljur Sports stores. He files a complaint with the Better Business Bureau. What action could the BBB take against Soljur if the complaint was substantiated and Soljur did not change the offending practice? a. Issue a cease-and-desist order. b. Seek a $10,000 monetary penalty. c. Issue a warning to consumers through the local newspaper. d. Order Meyers to make restitution. e. Seek a $5,000 monetary penalty.
Issue a warning to consumers through the local newspaper.
107. Volkswagen is planning its promotional strategy for its Passat model. When compared to others in its class, the Passat has average gas mileage, better comfort ratings, more leg room, better interiors, average dependability, and is made in its plants in Tennessee. Which of the following attributes of a Volkswagen Passat would be most appropriate to emphasize in television commercials during an economic recession? a. Gas mileage b. Dependability c. Made in the U.S.A. d. Leg room e. Comfort
Made in the U.S.A.
75. Companies delivering mixed concrete know that it cannot be shipped farther than 25 miles because the concrete might harden in the truck. Citrus County Concrete Company is the only supplier of mixed concrete to customers within a 30-mile radius. Citrus County Concrete is an example of which one of the following competitive structures? a. Monopoly b. Oligopoly c. Monopolistic competition d. Pure competition e. Monopsony
Monopoly
174. What national self-regulatory organization screens ads? a. Federal Advertising Review Division b. National Advertising Review Board c. Federal Communications Commission d. Consumer Federation of America e. Better Business Bureau
National Advertising Review Board
201. Which of the following actions is illegal? a. Political officials influencing how much a government agency purchases and from whom b. Corporate contributions to candidates c. Corporate contributions to elected officials d. Political officials helping businesses secure foreign markets e. Paying political officials not to enforce a particular law
Paying political officials not to enforce a particular law
57. Scenario 3.2 Use the following to answer the question. 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, 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, prefabricated 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. The i-House's reduction of energy use, renewable resources as materials, "pod" customization, reduction of construction waste, and tax abatement status is/are examples of reaction to which environmental forces? a. Political and sociocultural b. Political, sociocultural, economic c. Sociocultural and economic d. Political and economic e. Political, economic, sociocultural, and technological
Political, economic, sociocultural, and technological
110. During which stage of the business cycle is unemployment low and total income relatively high? a. Repression b. Prosperity c. Recovery d. Recession e. Depression
Prosperity
87. In general, which of the following competitive structures is an organization least likely to operate? a. Monopoly b. Monopolistic competition c. Oligopoly d. Elastic competition e. Pure competition
Pure competition
157. Price discrimination is prohibited by the ____ Act. a. Sherman Antitrust b. Wheeler-Lea c. Robinson-Patman d. Celler-Kefauver e. Consumer Goods Pricing
Robinson-Patman
156. International Office Supplies Wholesaler charges different prices to its various customers without any legal justification. This company is in violation of the a. Sherman Antitrust Act. b. Wheeler-Lea Act. c. Lanham Act. d. Federal Trade Commission Act. e. Robinson-Patman Act.
Robinson-Patman Act.
167. Which of the following regulatory groups is a system of nongovernmental, independent, local regulatory agencies supported by local businesses? a. The Chamber of Commerce b. The National Advertising Review Board c. The National Advertising Division d. The Better Business Bureau e. American Marketing Association
The Better Business Bureau
10. Technology affects the types of products offered to consumers. a. True b. False
True
13. Through technology assessment, managers try to foresee the effects of new products and processes on the firm's operations and on society. a. True b. False
True
132. The total amount of disposable income is affected by the amount of taxes consumers pay. a. True b. False
True
134. Credit increases current buying power at the expense of future buying power. a. True b. False
True
137. Wealth is an accumulation of past income, natural resources, and financial resources. a. True b. False
True
139. Wealth enables consumers to gain buying power. a. True b. False
True
14. The three major components of sociocultural forces are demographic and diversity characteristics, cultural values, and consumerism. a. True b. False
True
140. For a given level of buying power, the larger the family, the greater the willingness to spend. a. True b. False
True
141. A factor that affects willingness to spend is general economic conditions. a. True b. False
True
148. Fluctuations in the economy follow a general pattern known as the business cycle. It includes prosperity, recession, depression, and recovery. a. True b. False
True
179. Many laws that directly influence marketing activities were enacted either to preserve a competitive atmosphere or to protect consumers. a. True b. False
True
180. The Sherman Antitrust Act, along with several other laws, is a procompetitive law because it was created to preserve competition. a. True b. False
True
181. Fraud and antitrust violations are the most frequently sentenced organizational crimes. a. True b. False
True
183. Because of overlapping areas of responsibilities of regulatory agencies, confusion and conflict regarding jurisdiction of marketing activities are common. a. True b. False
True
185. State and local regulatory agencies usually do not establish and enforce regulations that conflict with the actions of national regulatory agencies. a. True b. False
True
186. Numerous self-regulatory programs have been created to stop or stall the development of laws and government regulatory groups that would regulate marketing practices. a. True b. False
True
187. Although numerous regulatory forces arise from governmental sources, nongovernmental regulatory forces may also affect marketing decisions. a. True b. False
True
20. The dynamics of technology involve the constant change that often challenges the structures of social institutions, including social relationships, the legal system, religion, education, business, and leisure. a. True b. False
True
203. If political officials have positive feelings toward particular firms or industries, they are less likely to create or enforce laws and regulations that are unfavorable for business organizations. a. True b. False
True
208. Marketers can influence the political process through political action committees that solicit donations from individuals and then contributes those funds to candidates running for political office. a. True b. False
True
32. An increasingly diverse cultural base in the United States means that marketers face increasingly diverse consumer markets. a. True b. False
True
34. Single people have quite different spending patterns than couples and families with children. They spend more heavily on convenience foods, restaurants, travel, entertainment, and recreation. a. True b. False
True
36. To achieve their objectives, consumer advocates write letters to companies, lobby government agencies, broadcast public service announcements, and boycott companies whose actions they deem irresponsible. a. True b. False
True
58. The marketing environment consists of external forces that directly or indirectly influence an organization's acquisition of inputs and generation of outputs. a. True b. False
True
59. Environmental analysis helps managers identify potential threats and opportunities linked to environmental changes. a. True b. False
True
7. Technology is the application of knowledge and tools to solve problems and perform tasks more efficiently. a. True b. False
True
8. Technological developments have a direct impact on creating and maintaining a marketing mix. a. True b. False
True
90. Brand competitors market products with similar features, benefits, and prices to the same customers. a. True b. False
True
91. The number of firms that control the supply of a product may affect the strength of competition. a. True b. False
True
95. Monitoring the competitive environment guides marketers in developing competitive advantages. a. True b. False
True
5. Which of the following is the best example of utilizing technology to improve consumer relationships? a. Waiters recording orders on handheld computers b. Surveying customers to determine their needs c. Responding to changes in competitors' prices d. Introducing stringent package standards e. Requiring dolphin-safe tuna
Waiters recording orders on handheld computers
173. When a firm continues to violate what the Better Business Bureau believes to be good business practices, what is one of the main actions the bureau will take? a. Lead a consumer boycott of the business. b. Sue the chief executive of the business. c. Impose fines on the owners/managers of the business. d. Support legal ordinances against the business. e. Warn consumers of the unfair practices.
Warn consumers of the unfair practices.
23. Many health-care companies are making adaptations to meet the needs of an aging population as the demand for medical services and products such as diabetes supplies increases. This change in marketing strategy is best explained by a change in a. demographics. b. cultural values. c. income levels. d. consumerism. e. subcultures.
demographics
127. 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, 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, prefabricated 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. The income a consumer would use to purchase an i-House is considered ____ income. a. discretionary b. buying power c. disposable d. consumer spending e. comprehensive spending
disposable
122. 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 _____. a. disposable income; savings b. gross income; disposable income c. disposable income; net income d. disposable income; discretionary income e. gross income; savings income
disposable income; discretionary income
28. Consumerism is a a. diverse group of individuals and organizations opposed to foreign producers that sell products in the United States that are much cheaper than those produced by U.S. manufacturers. b. social movement that is trying to encourage consumer satisfaction. c. social movement that is reorganizing the Council of Better Business Bureaus. d. diverse group of individuals and organizations attempting to protect the rights of consumers. e. social movement that provides consumers with means for expressing satisfaction and expressing their gratitude to producers.
diverse group of individuals and organizations attempting to protect the rights of consumers.
56. Scenario 3.2 Use the following to answer the question. 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, 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, prefabricated 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. The new Clayton Homes i-House product is a reflection of the company's attention to ____ in developing its strategy. a. marketing research analysis b. self-regulatory analysis c. consumer behavior analysis d. marketing information processing e. environmental scanning and analysis
environmental scanning and analysis
46. The La-Z-Boy furniture company collects information about a wide variety of competitive, economic, political, legal and regulatory, technological, and sociocultural forces that affect its marketing activities. This process is called a. environmental scanning. b. survey of environment. c. marketing. d. environmental analysis. e. marketing information processing.
environmental scanning.
15. Your company is accepting proposals from a variety of consulting firms to assist in determining how the rapid changes in technology will impact your firm's future operations and profitability. Which one of the following consulting firm proposals should you accept? a. Accept Firm A's proposal to complete a technology evaluation. b. Accept Firm B's proposal to complete a SWOT analysis. c. Accept Firm C's proposal to implement an information technology change management process. d. Accept Firm D's proposal to complete a technology assessment. e. None of the proposals should be accepted.
Accept Firm D's proposal to complete a technology assessment.
37. The following are some predictions from Smithsonian magazine regarding the future sociocultural dynamics in the world: The U.S. population will expand by 100 million. The portion of the population that is currently at least 65 years old is expected to increase from 13 percent to 20 percent by 2050 in the United States. By 2050, the working age group of people between 15 and 64 years old is expected to grow by 42 percent in the United States, but decline by 10 percent in China, 25 percent in Europe, 30 percent in South Korea, and 40 percent in Japan. With respect to these predictions, which one of the following statements is true? a. All of these predictions refer to population demographic characteristics. b. By 2050, the United States will have proportionately less workers in its population than Japan will have. c. If these predictions come true, the average age of the populations of Japan and South Korea will be lower than the United States. d. If these predictions come true, there will be less of a strain on environmental resources in the years to come. e. Based on these predictions, it is expected that the average age of the population in the United States will be lower in 2050 than it is today.
All of these predictions refer to population demographic characteristics.
60. At the beginning of each of your marketing strategy team meetings, each team member gives a presentation on the current status of a key force in your company's marketing environment. The following brief presentations were given by your team members: John's presentation focused on the competitive forces in your industry. Karen's presentation focused on the internal dynamics in your company. Brandon's presentation focused on the political events emanating from Washington D.C. Susan's presentation focused on what is driving the technology changes happening in the country. Beverly's presentation focused on the most recent economic projections issued by the Federal Reserve Bank of New York. After reviewing the presentations, you can conclude that a. Beverly spoke about the economic forces and Karen spoke about the political forces in the marketing environment. b. Brandon spoke about the sociocultural forces and Susan spoke about the technological forces in the marketing environment. c. John spoke about the competitive forces and Karen spoke about the political forces in the marketing environment. d. Beverly spoke about the economic forces and Susan spoke about the technological forces in the marketing environment. e. Karen spoke about the political forces and Brandon spoke about the legal and regulatory forces in the marketing environment.
Beverly spoke about the economic forces and Susan spoke about the technological forces in the marketing environment.
96. Your marketing team has started the analysis of your company's marketing environment. Competition has been very intense in recent years in your industry, so you decide to place more emphasis on analyzing the competitive forces in your industry. You group your competitors into the four types that a firm normally faces. In general, which one of the four types of competitors do you think will be the most formidable for your company? a. Total budget competitors b. Features-oriented competitors c. Brand competitors d. Generic competitors e. Product competitors
Brand competitors
197. San Francisco has banned toys in Happy Meals because of the demand these toys might create among children for unhealthy fast food. What type of regulatory force is this? a. Social regulation b. Self-regulation c. State regulation d. City regulation e. Federal regulation
City regulation
63. Marketers at Procter & Gamble have just finished up with a nationwide survey of their customers to determine the potential viability of a new product. Now the marketers must go over the data, tabulate the results, and form conclusions on whether the product idea should advance to the next level. What part of the environmental monitoring process is Procter & Gamble in at this stage? a. Environmental scanning b. Competitive analysis c. Reactive screening d. SWOT analysis e. Environmental analysis
Environmental analysis
196. XYZ Company has been a member of the Better Business Bureau for five years. In the past year, XYZ Company has had a number of customer complaints that it has not addressed. In response, what can the BBB do? a. Institute a fine against the XYZ Company b. File a lawsuit against the XYZ Company in a federal court c. Expel XYZ Company from its local bureau d. Force XYZ Company to address the complaints e. File a lawsuit against the XYZ Company in a state court
Expel XYZ Company from its local bureau
205. Your company is planning to increase its political influencing activities in the next fiscal year in an attempt to shape upcoming key legislation in your favor. Which of the following steps should you consider to accomplish this goal? a. Hire a public relations firm to help create a more youthful image for your company. b. Form your own Political Action Committee (PAC). c. Decrease your contributions to the political campaigns of key legislators. d. Close your company's legislative affairs office in Washington D.C. e. Cancel your company's membership in the U.S. Chamber of Commerce.
Form your own Political Action Committee (PAC).
61. 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 recently in the Sunday New York Times: "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. All of the headlines should be categorized as economic forces when analyzing the company's marketing environment. b. All of the headlines should be categorized as political forces when analyzing the company's marketing environment. c. Headline #5 should be categorized as a sociocultural force in the company's marketing environment. d. Headline #4 should be categorized as a legal and regulatory force in the company's marketing environment. e. All of the headlines should be categorized as geopolitical forces in the company's marketing environment.
Headline #4 should be categorized as a legal and regulatory force in the company's marketing environment.
204. 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: Lobbying Industry 2011 Spending 2013 Spending Pharmaceuticals/Health Products $241,168,770 $226,114,456 Insurance $158,404,505 $153,235,759 Oil & Gas $150,771,677 $144,878,531 Computers/Internet $126,827,796 $141,226,592 Electric Utilities $145,610,040 $129,882,034 TV/Movies/Music $123,061,396 $118,336,958 Business Associations $106,490,640 $108,518,903 Securities & Investment $104,689,226 $98,342,423 Misc. Manufacturing & Distributing $118,520,754 $96,970,399 Hospitals/Nursing Homes $98,480,316 $91,879,521 Health Professionals $82,641,177 $85,003,284 According to this data, which one of the following statements is true? a. Most of the top industries spent less on lobbying activities in 2013 compared to 2011. b. Most of the top industries spent more on lobbying activities in 2013 compared to 2011. c. The Computers/Internet and the Insurance industries both increased spending on lobbying activities from 2011 to 2013. d. Hospitals and nursing homes spent more on lobbying activities in 2013 than in 2011. e. Health professionals spent more on lobbying activities in 2011 than 2013.
Most of the top industries spent less on lobbying activities in 2013 compared to 2011.
142. A marketing analyst on your team obtained the following historical economic data from the Federal Reserve Bank of St. Louis for use in your marketing environment analysis: Month Civilian Unemployment Rate Real Personal Consumption Expenditures (Billions) December 2011 8.5% $10,372.1 June 2012 8.2% $10,493.6 December 2012 7.9% $10,602.4 June 2013 7.5% $10,707.1 December 2013 6.7% $10,844.3 Based on the data, which of the following statements about these economic forces in your marketing environment is true? a. Our customers likely had less buying power in December 2012 than they had in December 2011. b. The data suggests that our customers' buying power has been decreasing since before June 2012. c. The data suggests that our customers' buying power did not start increasing until December 2012. d. Our customers likely had more buying power in June 2013 compared to June 2012. e. Our customers likely found it easier to find jobs in December 2011 than in December 2013.
Our customers likely had more buying power in June 2013 compared to June 2012.
190. 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? a. Sherman Act of 1890 b. Securities Act of 1933 c. Sarbanes-Oxley Act of 2002 d. Wheeler-Lea Act of 1938 e. Lanham Act of 1946
Sherman Act of 1890
38. Based on data from the Federal Reserve Bank of St. Louis, the Civilian Labor Force Participation Rates for men and women in the United States were as follows from 1994 through 2014: Demographic Group Month Participation Rate (Percent of Group) Men May 2014 69.2 Women 57.1 Men May 2004 72.9 Women 59.1 Men May 1994 74.8 Women 58.7 With respect to this data, which one of the following statements is true? a. The labor participation rate of men in the United States impacts the marketing environment, and it is increasing faster than the rate for women. b. The labor participation rate for women impacts the marketing environment, and it has been less stable over the last 20 years than the rate for men. c. In terms of proportions, fewer women were working in May 2004 compared to May 2014. d. The labor participation rate is an economic force that impacts the marketing environment. e. The labor participation rate is a political force that impacts the marketing environment.
The labor participation rate is an economic force that impacts the marketing environment.
97. As input for a presentation that you are jointly authoring, one of your marketing analysts submitted the following summary of the characteristics of the four different types of market structures companies compete in: Competitive Structure Number of Competitors Market Barriers to Entry Monopolistic Competition Unlimited No Barriers Monopoly Few Some Barriers Pure Competition Many Few Barriers Oligopoly One Many Barriers With respect to the classifications of number of competitors and barriers to entry, which one of the following statements is correct? a. The monopolistic competition structure is properly classified. b. The monopoly and oligopoly structures' classifications should be reversed. c. The monopoly structure is properly classified. d. The oligopoly structure is properly classified. e. The pure competition and oligopoly structures are properly classified.
The monopoly and oligopoly structures' classifications should be reversed.
16. Marketers live in a world of constant change, and their ability to adapt to the pace of change will dictate the degree to which their marketing strategies are successful. Moreover, the changes can come in any or all of the different parts of the marketing environment. Which one of the following statements is true? a. The self-sustaining nature of technology relates to the fact that the products are increasingly being produced with environment-friendly components. b. The negative effects of technology include concerns over privacy and intellectual property protection. c. Consumers' use of mobile devices to access the Internet has been declining over the last few years. d. Technological innovations are created only by private companies. e. We can expect the pace of technological change to slow down as more technology-oriented startups choose to go public and become more conservative with their business strategies.
The negative effects of technology include concerns over privacy and intellectual property protection.
99. Budweiser, Heineken, Sam Adams, Corona, Guinness, and Miller are examples of __________ competitors in the beverage industry. a. brand b. product c. generic d. total budget
brand
Scenario 3.3 The Consumer Financial Protection Bureau settled a claim with the Bank of America for deceiving customers and unfairly billing them for services such as credit monitoring and identity theft protection. Bank of America agreed to provide refunds to 2.9 million people and pay $45 million in fines for their illegal credit card practices. Their deceptive practices dated to 2000 where they had billed customers for products such as "Privacy Guard" or "Privacy Assist" without first obtaining authorization for the products. The $45 million in fines includes $25 million as a civil penalty that will be paid to the Office of the Comptroller of the Currency and $20 million to the Consumer Financial Protection Bureau. The Bureau also claims that Bank of America deceived about 1.4 million customers into making about $268 million in payments by, among other things, improperly telling them the first 30 days of coverage were free or the benefits were greater than existed. 39. Refer to Scenario 3.4 Bank of America offered new products designed to protect individuals from identity theft. Consumer concerns about identity theft represent a. changes in cultural values. b. changes in technological forces. c. changes in the competitive environment. d. economic changes.
changes in cultural values.
40. Despite the fact that the FDA has mandated that they are safe, many people still distrust genetically-modified foods. Some are choosing to express their dissatisfaction by protesting and writing letters to their state governments. These letters demand that genetically-modified food be labeled so shoppers can make informed choices. These activities are an example of ___________. a. demographic shifts b. consumerism c. the cultural diversity movement d. self-regulation e. legal violations
consumerism
144. The Guitar Center traces its roots to 1959 when Wayne Mitchell opened a home organ store in California. In 1964, the company began selling guitars and amplifiers and changed its name to the Guitar Center. The company added stores gradually and today is known as the largest musical instrument retailer in the world. The company continues to grow and maintains over 250 stores across the United States. According to their website, "Guitar Center is home to the world's largest selection of popular guitars, basses, amplifiers, keyboards, workstations, drums, percussion, microphones, PA systems, DJ equipment, stage lighting, recording software, studio gear and more." Assume that you are one of the brand managers for a line of products such as guitars or keyboards. Which of the following would be most important to you in assisting you to forecast sales and plan inventory levels for the chain of stores? a. consumers' discretionary income b. consumers' wealth c. consumers' debt d. consumers' disposable income
consumers' discretionary income
209. Beautycounter is a firm that specializes in high-quality cosmetics that do not use any products which could be potentially harmful to humans. Founder Gregg Renfrew was inspired by the documentary An Inconvenient Truth to get rid of all products in her house that could contain harmful chemicals. However, when she tried to find makeup products that contained nontoxic ingredients, she could not find any that were of high quality. After she founded Beautycounter, the firm did extensive research to find high-quality, nontoxic materials that could be used in cosmetics. Beautycounter's target market is consumers who want high-quality makeup without the possibility of harm. This desire for ingredients that are healthy and nontoxic reflects changes in which type of issue in the sociocultural environment? a. demographic characteristics b. diversity c. cultural values d. technological e. consumerism
cultural values
195. Scenario 3.4. Bank of America is interested in helping people understand their money and how to build Better Money Habits™. They are working to connect customers, clients, employees, and communities to the tools, products, and education they need to help make their financial lives better. The Bank of America has partnered with Khan Academy to launch BetterMoneyHabits.com where free content is available to anyone via a self-paced learning experience to explain the complex concepts of financial matters. Refer to Scenario 3.4. The partnership between Bank of America and Khan Academy to provide financial literacy is an attempt by the company to a. engage in self-regulatory actions. b. comply with the Consumer Good Pricing Act. c. comply with the Sherman Antitrust Act. d. comply with the Nutrition Labeling and Education Act.
engage in self-regulatory actions.
47. In 2009 the Coca-Cola Company introduced the "Freestyler," a new freestanding soda dispenser where consumers can chose from over 120 different types of soda and customize their drinks. Freestylers would take the place of typical dispensers where there are only a few different types of soda brands available. In order to develop the new dispenser, Coca-Cola collected information on the soda-drinking habits of individuals in several different age groups, as well as information about new technologies for dispensing liquids from vending machines and the sales of its "fountain" syrup for national restaurant chains to use in their soda machines. Coca-Cola's collection of this information is an example of _____ while the assessment of its impact on the potential for the new "Freestyler" is an example of _________ a. environmental scanning; environmental analysis b. an environmental force; environmental scanning c. environmental analysis; environmental strategy d. strategizing; environmental scanning e. strategic management; environmental scanning
environmental scanning; environmental analysis
101. Fred has to decide whether to travel to Chicago by train or airplane. Traveling by train would take longer, giving him potentially less time to spend in Chicago. However, traveling by air would be much more expensive. The train as a form of transportation is what type of competitor to air travel? a. monopolistic b. product c. brand d. generic e. total-budget
generic
194. Refer to Scenario 3.3. If the Consumer Financial Protection Bureau decides to contact the Federal Trade Commission (FTC) to investigate Bank of America and its practices regarding deceptive billing practices, and if the FTC believes that Bank of America has violated a law, the FTC would first a. issue a cease-and-desist order. b. order Bank of America to stop engaging in deceptive practices to avoid prosecution. c. order Bank of America to refund consumers in order to settle or resolve the complaint. d. order Bank of America to pay up to $10,000 per day for violating the law.
issue a cease-and-desist order.
Scenario 3.3 The Consumer Financial Protection Bureau settled a claim with the Bank of America for deceiving customers and unfairly billing them for services such as credit monitoring and identity theft protection. Bank of America agreed to provide refunds to 2.9 million people and pay $45 million in fines for their illegal credit card practices. Their deceptive practices dated to 2000 where they had billed customers for products such as "Privacy Guard" or "Privacy Assist" without first obtaining authorization for the products. The $45 million in fines includes $25 million as a civil penalty that will be paid to the Office of the Comptroller of the Currency and $20 million to the Consumer Financial Protection Bureau. The Bureau also claims that Bank of America deceived about 1.4 million customers into making about $268 million in payments by, among other things, improperly telling them the first 30 days of coverage were free or the benefits were greater than existed. 192. Refer to Scenario 3.3. Which environmental force is Bank of America responding to by agreeing to pay fines and refunds to consumers? a. legal and regulatory b. competitive c. technological d. economic
legal and regulatory
98. Sysco and U.S. Foods have sought to merge their food distribution businesses. If the companies are allowed to merge, the combined company would control approximately 75% of the food service marketplace, potentially leading to higher prices and diminished service for the restaurants, hotels, and schools that contract distributors. A judge granted the Federal Trade Commission (FTC) request to grant a restraining order and injunction on the merger as it would substantially impair competition. If the FTC had not obtained a restraining order to block the merger attempt, what type of competitive structure could the merged company (U.S. Foods & Sysco) have achieved? a. monopoly b. oligopoly c. pure competition d. demand competition
monopoly
102. Under the terms of the trade agreement CAFTA-DR, the state-run telephone system in Costa Rica was opened up for competition. Now four main companies dominate the telecommunications industry for mobile phones and Internet. The telecommunications industry in Costa Rica went from being a(n) ___________ to a(n) _______________. a. oligopoly; monopolistic competitive environment b. monopoly; monopolistic competitive environment c. monopoly; oligopoly d. monopolistic competitive environment; oligopoly e. pure competitive environment; oligopoly
monopoly; oligopoly
62. Google is known for its successful products. It has the most popular search engine in the world, and its Android operating system gives competitor Apple a run for its money in the smartphone industry. Google has expanded into so many areas that it reorganized into a holding company called Alphabet. This holding firm includes Google as a search engine company as well as a number of other companies. According to the CEO, the new holding company will allow each firm to run more independently, which in turn keeps them more flexible to market opportunities. Google is also known for its strong lobbying efforts, having spent more than $4.5 million on lobbying within a four-month period. Google has most likely adopted a ____________ approach to environmental forces. a. proactive b. reactive c. economic d. sociocultural e. monopolistic
proactive
19. The fact that technology acts as a catalyst to spur even faster development is referred to as a. self-sustaining. b. reach. c. dynamics. d. impact. e. technology assessment.
self-sustaining.
18. A firm is trying to determine whether it would be advantageous to adopt a new computer system with advanced software. It is investigating how this computer system will improve its own operational efficiency. It is also examining trends in the industry to determine the impact that adopting this computer system might have on customers and society at large. The firm is engaging in _______________. a. monopolistic competition b. economic forecasting c. self-regulation d. environmental analysis e. technology assessment
technology assessment
144. The Guitar Center traces its roots to 1959 when Wayne Mitchell opened a home organ store in California. In 1964, the company began selling guitars and amplifiers and changed its name to the Guitar Center. The company added stores gradually and today is known as the largest musical instrument retailer in the world. The company continues to grow and maintains over 250 stores across the United States. According to their website, "Guitar Center is home to the world's largest selection of popular guitars, basses, amplifiers, keyboards, workstations, drums, percussion, microphones, PA systems, DJ equipment, stage lighting, recording software, studio gear and more." Assume that you are one of the brand managers for a line of products such as guitars or keyboards. Which of the following would be most important to you in assisting you to forecast sales and plan inventory levels for the chain of stores? a. consumers' discretionary income b. consumers' wealth c. consumers' debt d. consumers' disposable income
that the economy is in the prosperity stage of the business cycle and consumers' buying power is increasing.
