Deck 3: The Marketing Environment

Question 1

Through technology assessment, managers try to foresee the effects of new products and processes on the firm's operations and on society.

Answer 1

True

Question 2

Firms always adopt and use new technology.

Answer 2

False

Question 3

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 through the website BetterMoneyHabits.com reflects the importance of ______ as an environmental factor.

A) technology
B) economy
C) politics
D) legal regulations

Answer 3

A

Question 4

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.

Question 5

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.

Question 6

Technology affects the types of products offered to consumers.

Question 7

Technological changes do not directly affect what, how, when, and where products are marketed.

Question 8

Why must marketers be aware of new developments in technology?

Question 9

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

Question 10

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.

Question 11

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.

Question 12

Technological developments have a direct impact on creating and maintaining a marketing mix.

Question 13

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

Question 14

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.

Question 15

The three major components of sociocultural forces are demographic and diversity characteristics, cultural values, and consumerism.

Question 16

Technology is the application of knowledge and tools to solve problems and perform tasks more efficiently.

Question 17

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

Question 18

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.

Question 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.

Question 20

Technology can help marketers become more productive.

Question 21

An increasingly diverse cultural base in the United States means that marketers face increasingly diverse consumer markets.

Question 22

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

Question 23

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.

Question 24

In what ways is the United States becoming an increasingly diverse nation in terms of culture?

Question 25

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:

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.

Question 26

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.

Question 27

The major forces that make up the consumerism movement are consumer organizations and business organizations.

Question 28

The proportion of the U.S. population that will be over 65 years of age is expected to decline by the year 2050.

Question 29

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.

Question 30

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

Question 31

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

Question 32

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.

Question 33

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.

Question 34

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.

Question 35

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.

Question 36

The number of single men and women living alone is declining.

Question 37

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.

Question 38

Changes in cultural values have little effect on people's needs for products.

Question 39

What are the major forces that are referred to as sociocultural forces and how do they present marketers with both challenges and opportunities?

Question 40

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.

Question 41

Environmental analysis helps managers identify potential threats and opportunities linked to environmental changes.

Question 42

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

Question 43

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.

Question 44

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

Question 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.

Question 46

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.

Question 47

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.

Question 48

Given a new brand of barbecue sauce for which to develop a marketing strategy, describe how you would conduct environmental scanning and analysis.

Question 49

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.

Question 50

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

Question 51

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

Question 52

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

Question 53

Sociocultural values include cultural values, demographics, and the impact of technology on society.

Question 54

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.

Question 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

Question 56

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

Question 57

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.

Question 58

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.

Question 59

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

Question 60

The marketing environment consists of external forces that directly or indirectly influence an organization's acquisition of inputs and generation of outputs.

Question 61

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

Question 62

When marketers define their target market, they simultaneously establish a set of

A) technologies.
B) monopolies.
C) competitors.
D) government regulations.
E) sociocultural forces.

Question 63

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

Question 64

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

Question 65

____ 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

Question 66

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

Question 67

____ competitors provide very different products that satisfy the same basic customer need.

A) Brand
B) Generic
C) Total budget
D) Product
E) Marketing

Question 68

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.

Question 69

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

Question 70

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

Question 71

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

Question 72

Marketers primarily focus their environmental analysis on ____ competitors.

A) brand
B) product
C) total budget
D) generic
E) monopolistic

Question 73

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

Question 74

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

Question 75

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.

Question 76

Using surveys to conduct marketing research is an example of environmental analysis.

Question 77

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.

Question 78

Explain the differences between the competitive structures of a monopoly and an oligopoly.

Question 79

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.

Question 80

____ 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