Chapter 4 Quiz

12. Which of the following is a key problem with environmental scanning today? A. Locating information about the industry. B. Determining which available information is worthy of the time and energy required. C. Sharing information with government regulators. D. none of the above

B. Information is readily available for most industries, but most executives do not have the time to read and digest all of it.

8. When consumers use a smartphone to compare prices before they purchase a product they evaluate in a brick-and-mortar store, they are engaging in A. net-leveraging. B. showrooming. C. cognitive dissonance. D. none of the above

B. Showrooming

11. The systematic collection and analysis of information about relevant macroenvironmental trends is known as A. strategic planning. B. strategic management. C. environmental scanning. D. none of the above

C. Environmental Scanning

7. Which of the following is not an example of a social force? A. trends B. values C. industrial change D. all of the above are examples of a social force.

C. Social forces include such factors as societal values, trends, traditions, and religious practices.

9. Technological forces often A. decimate an entire industry. B. spawn new industries. C. vary substantially among industries. D. all of the above

D. Technological forces vary across industries and can eliminate existing industries and create new ones.

10. How has the Internet changed strategic management? A. It promotes information symmetry. B. It can often be used as a distribution channel. C. It often reduces costs. D. All of the above.

D. The Internet promotes information symmetry, can be used as a distribution channel in some instances, and has the potential for cost shifting and cost reductions.

4. Commoditization refers to the ability to individualize product and service offerings to meet specific buyer needs. True of False

False. Mass customization refers to the ability to individualize product and service offerings to meet specific buyer needs.

3. The unconscious reference to one's own cultural values as a standard of judgment is known as cultural bias. True or False

False. The unconscious reference to one's own cultural values as a standard of judgment is known as the self-reference criterion.

Commoditization

Firms are having a more difficult time distinguishing their products and services from those of rivals.

5. Reading business publications can serve as a means of environmental scanning. True of False

True. Environmental scanning is the process of staying abreast of changes in the macroenvironment, a process that can be assisted by reading business publications.

1. In many respects, social forces are the drivers of consumer markets. True of False

True. In general, social forces are very strong in consumer markets.

2. The expansion of a religion in an emerging country is an example of a social force. True or False

True. Religious values in all countries, emerging or otherwise, constitute a key social force.

6. Environmental scanning can be difficult for large firms because of the availability of too much information. True or False

True. The primary problem created by environmental scanning is often one of determining which information available warrants attention.