Deck 7: Strategies of Societal and Business Interest Groups Government

Question 1

Activists include societal interest groups, their members, and anyone interested in their causes.

Answer 1

True

Question 2

Demonstrations _________.

A) are the same thing as boycotts.
B) are usually good for a company's image and community relationship.
C) are hardly ever used by activist groups.
D) can boost morale for company employees.
E) drive customers away and hurt the corporate image.

Answer 2

E

Question 3

________ include diverse organizations and interest groups working together temporarily for a common interest.

A) Lobbyists
B) Special interest groups
C) Coalitions
D) Appeals boards
E) Litigation

Answer 3

C

Question 4

Of the eight strategies, ________ is a proactive strategy to help prevent activists from taking issues to business or for resolving them in the early stages.

A) gaining public sentiment
B) discouraging community involvement
C) accessing information
D) issue identification
E) problem solving

Question 5

_________include donating, ignoring, opposing, negotiating, and working with activists.

A) Marginalizing resources
B) Dumbing down marketing techniques
C) Global market strategies
D) Activist negotiations
E) Grand nonmarket strategies

Question 6

_______are things that may happen, such as an event, problem, emergency, or expense that might arise somewhat unexpectedly.

A) Multiplicities
B) Contingencies
C) Grand nonmarket strategies
D) Lockouts
E) Advocacy advertising

Question 7

Which statements about activists are correct?

A) Activists rally support of society to take action that they would not have taken on their own to meet activists' special interests.
B) Activists provide information about business activities to business, society, and government.
C) Activists develop nonmarket agenda issues for business.
D) Activists work with business to set voluntary standards and with the government to influence the development of laws and regulations.
E) Activists work with government to ensure that companies provide customers with products they desire and can afford.

Question 8

Which statement about societal and business interest groups are correct?

A) Societal and business interest groups are similar in that both are nonprofit organizations representing their members and other stakeholders.
B) Business interest group members are primarily business firms whereas societal members are individuals.
C) They both get revenues from members.
D) They both get revenues from selling products. However, business interest groups tend to provide more services to their members than societal interest groups, so they raise more revenue by selling products.
E) None of these is correct.

Question 9

Which of the following are true regarding the power that trade associations have?

A) Unlike societal interest groups, business interest groups do not provide the interest group with revenues.
B) Many organizations belong to both trade and peak groups.
C) Few business do their own advocating.
D) Most large businesses do their own advocating.

Question 10

Which statements about business interest groups are correct?

A) They provide information to business, society, and government.
B) They advocate for business but also present all stakeholders' side of the issue to society and government.
C) They provide a variety of services to their members.
D) They set mandatory standards for their members.
E) Business interest groups also tend to provide far fewer services to their members.

Question 11

Which statements about strategies activists use against business interest groups are correct?

A) Activista gain community public sentiment for being socially responsible as a proactive strategy.
B) Activists give very positive stories to the news media about businesses.
C) Activists rarely use coalitions or interest groups working together.
D) Activists use demonstrations (picketing and rallies) to pressure business for change.
E) Activists use boycotts to request that society stop doing business with a firm.

Question 12

Which statements about nonmarket strategies businesses use against activists are correct?

A) Both activists and businesses have seven strategies they commonly use against each other.
B) Five of the strategies are the same: grassroots efforts, news media relations and advocacy advertising, coalitions, appeals to the government, and litigation.
C) Activists are usually on the offensive, pressuring business and government for change, and business is on the defensive trying to maintain the status quo.
D) Activists are usually on the defensive.
E) Activists develop a grand strategy to use to pressure business.

Question 13

List and briefly describe four societal interest groups mentioned in the textbook.

Question 14

Define business interest groups.

Question 15

Describe in general terms the operations and finance of business interest groups and how that is different from societal interest groups.

Question 16

What is the Better Business Bureau, and how does it operate?

Question 17

List five of the seven ways activist grassroots efforts mobilize members and supporters to contact business and government .

Question 18

The __________ is a small and independent business advocate to government and serves as a key resource for its members.

A) National Federation of Independent Business (NFIB)
B) Business Roundtable
C) Better Business Bureau
D) U.S. Chamber of Commerce
E) Group in Behalf of Citizens

Question 19

The ________ is a neutral third-party interest group that helps consumers and business maintain an ethical marketplace.

A) National Federation of Independent Business
B) Business Roundtable
C) Better Business Bureau
D) U.S. Chamber of Commerce
E) Group in Behalf of Citizens

Question 20

Which statement about peak and trade interest groups is correct?

A) Peaks have the disadvantage of members who have similar interests, which makes a unified advocacy easy.
B) Peak, or umbrella, interest groups represent businesses from several industries on a broad range of general business interest issues.
C) Peaks are larger in number and have the disadvantage of representing large numbers of companies and industries with large resources.
D) Trade groups represent businesses on a broader range of industry, and there more trade than peak associations.
E) Trade groups have the disadvantage of less unity of interest.

Question 21

Business interest groups are part of the business market environment.

Question 22

Business interest groups can be classified into two types: professional and nonprofessional groups.

Question 23

The Better Business Bureau is a peak interest group.

Question 24

National Automobile Dealers Association (NADA) is a trade group.

Question 25

As business develops nonmarket strategies, so do activists.

Question 26

Activists are effective at developing and implementing strategies that pressure business to change.

Question 27

Watchtower is an association of chief executive officers of leading U.S. corporations that serves as a business advocate to government.

Question 28

The larger the grassroots efforts, the more pressure there is on the government to investigate and on the business to voluntarily change its practices.

Question 29

Activists use information strategies (outside sources, experts, and stakeholder support) to tell their side of the issue.

Question 30

Businesses should take a stakeholder management approach to strategy formulation and implementation.

Question 31

Unlike activists, business rarely appeal to the government.

Question 32

Since litigation can be very expensive, it is commonly used as a scare tactic.

Question 33

_________is an advocate for the public interest in the political process, holding elected leaders accountable.

A) Public Citizen
B) The Consumer Federation of America
C) Center for Public Integrity
D) Watchdog
E) Common Cause

Question 34

________ is a consumer advocate to the government.

A) Public Citizen
B) The Consumer Federation of America
C) Center for Public Integrity
D) Watchdog
E) Common Cause

Question 35

_________ are nonprofit organizations comprised of groups of firms joined together to advocate their interest on issues.

A) Societal interest groups
B) Chambers of Commerce
C) Business interest groups
D) Peak interest groups
E) None of these

Question 36

_________ raise more revenue than _________ groups through membership products and services.

A) Societal interest groups, business interest groups
B) Operations groups, finance groups
C) Finance groups, Chambers of Commerce groups
D) Business interest groups, societal interest groups
E) Societal interest groups, benevolent order groups

Question 37

What are the five Is of strategic analysis?