Question 1

Company ACME believes that another company, called Positioner, is selling a product well under cost in order to drive ACME and others out of the industry. What federal law could Positioner be guilty of violating?

Accepted Answer

The Competition Act addresses anti-competitive practices in the marketplace, including predatory pricing, which is selling a product below cost to eliminate competition. This is what Positioner could be guilty of, according to ACME's belief.

Question 2

Which component of the marketing environment consists of factors that influence consumer buying power and marketing strategies?

Accepted Answer

The answer of Which component of the marketing environment consists...

Question 3

How do marketers respond to consumer buying behaviour in times of prosperity?

Accepted Answer

In times of prosperity, consumers are more willing to spend, leading marketers to introduce new products, ramp up promotional activities, and broaden distribution channels to capture the increased spending power and demand.

Question 4

Where does indirect competition occur?

Accepted Answer

Indirect competition occurs among marketers of products that can be easily substituted, as these products fulfill similar needs or wants, even if they are not identical.

Question 5

In Canada, three major music companies receive 85 percent of recording revenues. These companies operate in what type of market structure?

Accepted Answer

The answer of In Canada, three major music companies receive...

Question 6

Which area is NOT covered by the Competition Act?

Accepted Answer

The Competition Act primarily focuses on maintaining fair competition within a country by addressing practices like misleading advertising, bait-and-switch selling, and exclusive dealing. It does not specifically regulate international marketing, which involves trade practices beyond a single country's jurisdiction.

Question 7

What does the "cooling-off" period allow?

Accepted Answer

The "cooling-off" period is designed to give buyers the opportunity to reconsider a purchase decision, especially one that might have been made impulsively or under pressure from aggressive sales tactics. This period allows the consumer to cancel the contract without penalty within a certain timeframe after the purchase.

Question 8

During recessionary periods, how is it still possible for a business to compete?

Accepted Answer

During recessionary periods, consumers become more cost-conscious and are looking for value in their purchases. Offering value-priced products can appeal to these consumers, allowing a business to remain competitive even when economic conditions are challenging. Reducing promotional outlays, raising prices, or curtailing customer service may negatively impact a business's competitiveness.

Question 9

Which of the following is an example of indirect competition?

Accepted Answer

Indirect competition refers to competition between products or services that are not direct substitutes but can be considered alternatives by consumers based on their needs or desires. In this case, a Sony home entertainment system and a Jacuzzi hot tub are not direct substitutes but could compete for discretionary spending on home leisure or improvement.

Question 10

What federal organization has the broadest powers of any organization to influence the assignment of patents and trademarks in Canada?

Accepted Answer

The Canadian Intellectual Property Office (CIPO) is the federal agency responsible for the administration and processing of the greater part of intellectual property in Canada. This includes patents, trademarks, copyrights, and industrial designs. CIPO's role is specifically to oversee the registration and administration of intellectual property rights, making it the organization with the broadest powers in this area.

Question 11

Which of the following best describes the Canadian Marketing Association (CMA)?

Accepted Answer

The Canadian Marketing Association (CMA) is a self-regulatory organization that represents the marketing industry's efforts to establish guidelines for ethical and responsible business practices. It is not focused on pharmaceutical advertisements, nor is it a regulatory body for the food and drug industries, nor does it specifically protect competitors within the industry.

Question 12

What important act was passed in 1975 that has a mission to foster a growing, knowledge-based Canadian economy?

Accepted Answer

The Competition Act, passed in 1975, is designed to foster a competitive marketplace in Canada, which in turn supports a growing, knowledge-based economy by ensuring that businesses operate in a fair and innovative manner.

Question 13

Camp Gear, Inc. introduces a new line of rough-terrain clothing. The company increases the number of advertisements in several outdoor magazines and establishes a new, updated website for online orders. What stage of the business cycle is most likely occurring at this time?

Accepted Answer

The introduction of a new product line and increased advertising suggest that Camp Gear, Inc. is experiencing growth, which typically occurs during a period of low unemployment and low inflation. This indicates a healthy economy where businesses are likely to invest in expansion and marketing.

Question 14

During what period does consumer spending reach its lowest level?

Accepted Answer

Consumer spending typically reaches its lowest level during a depression, a period characterized by prolonged economic downturn, high unemployment, low consumer confidence, and reduced spending.

Question 15

Which of the following helps time-based competitors to improve product quality, reduce costs, and expand product offerings to satisfy new market segments and enhance customer satisfaction?

Accepted Answer

Flexibility and responsiveness are key for time-based competitors to adapt quickly to market changes, improve product quality, reduce costs, and expand product offerings, thereby enhancing customer satisfaction.

Question 16

What would a computer-chip company that follows the time-based competition strategy most likely do?

Accepted Answer

The answer of What would a computer-chip company that follows...

Question 17

Which of the following factors is NOT studied by marketers analyzing the economic environment?

Accepted Answer

Marketers typically focus on factors that directly impact consumer purchasing power and spending patterns, such as unemployment, inflation/deflation, and resource availability. The specifics of stock and bond markets, while influential on the broader economic environment, are generally not a primary focus for marketers analyzing consumer behavior and market demand.

Question 18

Lockheed Martin won the world's largest ever military contract by proving it could be the first company to develop and fly a new model plane in just four years. What does this illustrate?

Accepted Answer

This illustrates the importance of time-based competition, as Lockheed Martin's ability to quickly develop and fly a new model plane was a key factor in winning the contract.

Question 19

Which of the following is NOT a business cycle stage?

Accepted Answer

Inflation is not considered a stage of the business cycle. The business cycle consists of stages such as recovery, recession, and depression, which describe the fluctuations in economic activity over time. Inflation, on the other hand, refers to the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. It is a phenomenon that can occur during various stages of the business cycle, rather than being a stage itself.

Question 20

Which federal organization concerns itself with the regulation of mobile phones and cable?

Accepted Answer

The Canadian Radio-television and Telecommunications Commission (CRTC) is responsible for regulating all aspects of the Canadian broadcasting system, including mobile phones and cable services.

Quiz 3: The Marketing Environment, Ethics, and Social Responsibility