Marketing Exam ch 3

The popular cupcake chain Sprinkles, which launched in Southern California in 2005, recently settled a trademark infringement lawsuit against a Connecticut bakery that was calling itself Pink Sprinkles. The latter was forced to change its name to Pink Cupcake Shack because it was apparently violating provisions of the

Lanham Act

All of the following statements about the environmental forces that have influenced Facebook are true except which?

N/A

As the director of marketing for a local hospital that specializes in caring for limited mobility patients and related health issues, you must conduct an environmental scan to help create a five-year marketing plan for the hospital. Which of the following environmental trends should you consider to be the most important?

The number of people in the geographic area who are 65 years or older will increase by 23 percent during the next five years.

A growing trend to "Buy American" may encourage U.S. automakers to increase political pressure on Washington to pass legislation for more restrictive quotas on Japanese car imports. In addition, a decline in the value of the U.S. dollar would be instrumental in Toyota's decision to build a manufacturing plant in the United States instead of continuing to export cars from Japan. If Toyota builds the plant, its decision would reflect

a positive result from regulatory and economic environmental forces.

A time of declining economic activity when businesses decrease production, unemployment rises, and many consumers have less money to spend is referred to as

a recession

Which of the following would be identified as a social force in an environmental scan?

an increase in Asian immigration

Olay, a personal care product firm, offers anti-aging and restoration products like its Total Effects cleansing cloths that are best targeted toward

baby boomers

Technological advances sometimes have disruptive effects. One great advance can replace or substitute for existing products in a relatively short period. Apple Pay for iPads and iPhones is most likely to replace or substitute for

credit cards and cash

More is a publication designed to appeal to women aged 40 and over. Demand for such magazines is an example of how changing ________ characteristics impact the marketing environment.

demographic

The social forces in the environment include the ________ of the population and its culture.

demographic characteristics

Recently, the number of people who attended music concerts, plays, and other live entertainment increased because they had the ________ to enjoy these activities.

discretionary income

Any activity that uses electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services is referred to as

electronic commerce

Environmental trends arise from all of the following forces except which?

geographical

Chrysler recycles thousands of tons of wood pallets, cardboard, and paper annually. Chrysler cars are 75 percent recyclable. Chrysler's recycling programs are examples of

green marketing

FedEx and UPS are converting their delivery trucks with standard diesel engines to more fuel-efficient and cleaner hybrid-electric vehicles, which can cut fuel costs by half and lower fuel emissions by 90 percent. This is an example of

green marketing

Generally, the U.S. population is becoming

larger, older, and more diverse

A national pet health care provider recently made a competitive move when it acquired new information. A rival had "preannounced" a new pet coverage product in a tiny community newspaper six months prior to launching it. The national pet health care provider's marketing manager was notified immediately through a news monitoring service. The firm quickly added a similar offering, and got it to the market before its rival. The marketing manager relied on ________ to keep abreast of competitors' activities.

legitimate environmental scanning

AT&T, Verizon, Sprint, and T-Mobile serve more than 95 percent of the subscribers in the U.S. wireless mobile phone market. Which form of competition characterizes this market?

oligopoly

Eighty percent of consumers say they will switch to a brand or retailer that supports a good cause if the price and quality of brands or retailers are equal. In short, cause marketing may be a valued ________ for brands and companies, all other things being equal.

point of difference

The change in the growth of the world's population is called the

population explosion

A proposed law in New Jersey would ban the use of tanning beds by anyone under the age of 18. This restriction would be an example of which environmental force?

regulatory

An Arizona cardiac surgery practice agreed to pay the U.S. Department of Health and Human Services a $100,000 settlement following an investigation of potential violations of the Health Insurance Portability and Accountability Act (HIPAA) Privacy and Security Rules. The practice posted clinical and surgical appointments for its patients on an Internet-based calendar that was publicly accessible, which drew complaints for failing to protect health information of consumers. HIPAA rules are an example of ________ forces in the marketing environment.

regulatory

The Lemon Tree is a high-fashion boutique selling top-of-the-line women's clothing and accessories. The keys to its success include knowing customers' changing tastes and providing something different than other retailers. In addition, because of the high value of the merchandise, The Lemon Tree's management is investing in the use of computerized inventory controls and sales order processing. The least important environmental force to The Lemon Tree at this time is likely to be

regulatory

Visa and MasterCard have recently been accused of violating antitrust laws by improperly fixing credit and debit card fees (known as swipe fees) paid by retailers to use their services, creating an anti-competitive environment. Legislation that prohibits price-fixing is an example of ________ forces that affect the marketing environment.

regulatory

Recent data on consumer expenditures indicate that the savings rate of U.S. consumers has

risen to 5.8 percent

A code of ethics is a formal statement of ethical principles and

rules of conduct

Cosco, the world's largest children's products company, recently sold a high chair that could be used as an infant feeding seat, a youth chair, a play chair, a booster chair, and when reclined, an infant bed for $49. The prototypes had been tested by Cosco employees who had small children, but this was the only product testing performed. Once sold, several children were injured and some died as a result of using the chair. Cosco was charged with being unconcerned about consumers' right to

safety

Many large consulting firms are beginning to sponsor "women-only" networking events. The purpose of these events is to offer an opportunity for women in management to network with other businesswomen, either as clients, mentors, or protégés. This is an example of which environmental force?

social

In most countries, copyrights, trademarks, and patents are viewed as intellectual property, and unauthorized use, reproduction, or distribution of intellectual property is illegal. In a few countries, however, copying enjoys a long tradition, does not carry a stigma, and is legal. For example, copying a masterpiece may be historically considered an art form in its own right. The difference between these two groups of countries shows that ________ affect(s) the view of ethical behavior held in each country.

societal culture and norms

Cloud computing, such as Apple's iCloud, enables businesses and consumers to share data or use software applications directly from a remote server over the Internet or wirelessly rather than having that data file or program reside on a personal computer. This is an example of a ________ change in the marketing environment.

technological

Growth of green technologies such as smart grid electricity services, online energy management, and consumer-generated energy are ________ forces that would be identified through an environmental scan.

technological

Medication sensors have been developed that can dispense medicines by circulating within the arteries of the body and sensing when the medication is needed. This is an example of how ________ forces help improve or replace existing products and companies.

technological

One reason some people don't like to buy clothing from Internet retailers is the inability to know if the ordered clothes will fit. ImageTwin has developed a scanning system that obtains the measurements of individuals, which is then fed into a database. When you want to buy something at LandsEnd.com, you can see a 3-D image of what the item should look like on your body. This is an example of the ________ force in the marketing environment.

technological

Recently, ink has been developed that will conduct electricity. The application for this ink is to print circuitry that can be read electronically. This may help to drive down the cost of radio frequency (RFID) tags that are currently used in industry. This is an example of how ________ forces are applied to industry.

technological

An important social trend is the continued concern for health and well-being in the United States. This is most likely evidenced by

the addition of Lay's Kettle Cooked potato chips, which have 40 percent less fat than regular potato chips

Demographics refer to

the description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation

Green marketing refers to

the marketing efforts to produce, promote, and reclaim environmentally sensitive products.

Culture refers to

the set of values, ideas, and attitudes that are learned and shared among members of a group.

A firm conducting an environmental scan of the marketplace might uncover key ________ such as the growing popularity of video bloggers and the increasing mobility and connectivity of consumers.

trends

Members of Generation Y are more likely than other generational cohorts to influence

video games