Question 1

Which of the following is an impact of government regulations on marketers?

Accepted Answer

Government regulations can increase the cost of compliance for marketers, as they may need to hire additional staff or invest in new technology to meet the requirements. This can create a financial burden for businesses, which may ultimately affect their bottom line.

Question 2

Suppose C $1.00 was worth US $0.809,and after nine months,the Canadian dollar increased to $1.50.This is an example of:

Accepted Answer

The increase in the value of the Canadian dollar is an example of foreign currency fluctuation, as it has changed in relation to the US dollar.

Question 3

In Germany,in 1923,prices doubled every two days,and workers were paid twice a day so they could buy food and goods before prices rose again.The new payment system was in response to the:

Accepted Answer

The doubling of prices every two days is indicative of hyperinflation, which occurred in Germany in 1923. This led to the introduction of the "twice-a-day" payment system, where workers were paid twice a day so that they could keep up with the rising prices of food and goods. Therefore, the correct answer is C for inflation.

Question 4

Bill is part of a program that collects biodegradable material from domestic wastes.This material is collected by the municipality and used to make compost for gardening.Which of the following program best describes Bill's activity?

Accepted Answer

Bill's activity is part of a program that collects biodegradable material from domestic waste and is used to make compost for gardening. This description matches with the program of Green bin, which is specifically designed for collecting organic waste and converting it into compost.

Question 5

When the value of the Canadian dollar increases by 20 percent against the major currencies in the previous quarter and drops by around 30 percent in the current quarter,it is referred to as:

Accepted Answer

This is an example of foreign currency fluctuation, where the Canadian dollar experiences significant changes in value against other major currencies.

Question 6

PlusLight,a torch manufacturing company,releases high-intensity torches at incredibly low prices.Within a year,it achieves market monopoly by driving away most of its competitors from business.Which of the following practices did PlusLight engage in?

Accepted Answer

PlusLight engaged in predatory pricing by selling its products at a very low price to drive away competitors from the market. This allowed them to achieve market monopoly. Price fixing involves collusion between firms to set the same price for their products, price discrimination involves charging different prices to different customers, bid rigging involves colluding with other firms to drive up the price of bids, and resale price maintenance involves setting a minimum price at which retailers can sell a product.

Question 7

A situation in which incentives are offered to consumers to provide the names of other potential consumers is called:

Accepted Answer

Referral selling, also known as word-of-mouth marketing or network marketing, is a strategy where companies incentivize their existing customers to refer their friends, family, or acquaintances to become new customers. This strategy can be effective in increasing sales and acquiring new customers.

Question 8

The fact that many of today's commercials for children's gear now include Dad interacting with the kids and being involved in purchase decisions reflects:

Accepted Answer

The inclusion of dads in marketing for children's gear reflects the trend towards changing gender roles and the importance that marketers are placing on this shift.

Question 9

Mekong Airlines uses special technology to reduce the number of lost bags and make it easier to reroute bags if passengers change their flight plans.Which of the following technologies does it use to track passenger bags?

Accepted Answer

Mekong Airlines uses Radio Frequency Identification (RFID) technology to track passenger bags. This allows for more efficient and accurate tracking of bags, reducing the likelihood of lost bags and making it easier to reroute bags if needed. Resonant inductive coupling, electrodynamic induction, and Supranet are not relevant technologies for bag tracking. Although biometrics can be used for passenger identification, it is not a technology used for bag tracking.

Question 10

A car sales showroom displays a basic car with a very low price tag.Once a customer is interested,the salesperson persuades him or her to buy a more expensive model.This is an example of:

Accepted Answer

This is an example of bait-and-switch, where the customer is lured in with a low-priced item (the basic car) but ultimately persuaded to purchase a more expensive model.

Question 11

A hotel introduces eco-rooms that have energy-efficient mini-bars,organic bed linen,and napkins made of recycled papers.They also advertise that their rooms are fitted with CFLs or LEDs to conserve energy.This is an example of:

Accepted Answer

This is an example of green marketing, which is the promotion of environmentally-friendly products or services. The hotel is highlighting its eco-friendly initiatives in order to appeal to customers who prioritize sustainability.

Question 12

A situation in which sellers collude to set prices in response to quotations for products is called:

Accepted Answer

Bid rigging is defined as when competing sellers come together to fix a price for a product or service in relation to an auction or bidding process. This collusion can result in higher prices for buyers and is illegal in most countries.

Question 13

Which of the following is used by retail firms to track an item from the moment it is manufactured,through the distribution system,to the retail store,and into the hands of the final consumer?

Accepted Answer

Radio frequency identification devices (RFID) are commonly used in retail firms to track items throughout the supply chain, from the manufacturer to the retail store and ultimately to the consumer. RFID tags are attached to products and can be scanned by readers at various points in the supply chain to track the item's location and history.

Question 14

Which of the following situations arises during a recession?

Accepted Answer

During a recession, there is often a significant increase in the rate of unemployment due to businesses cutting costs and reducing their workforce. The other options listed - an increase in stock market valuations, business and consumer confidence, consumer spending, and purchasing power - are unlikely to occur during a recession.

Question 15

A period of economic downturn when the economic growth of a country is negative for at least a couple of consecutive quarters is called:

Accepted Answer

A recession is a period of economic decline, characterized by a negative growth rate of gross domestic product (GDP). It typically lasts for more than a few months and can lead to job losses, decreased consumer spending, and a slowdown in business activity.

Question 16

Which of the following programs encourages consumers to recycle their food and yard waste to make compost for gardening?

Accepted Answer

The program that encourages consumers to recycle their food and yard waste to make compost for gardening is called a Green Bin program. This involves providing residents with green bins to collect their organic waste which is then picked up for composting. The resulting compost is then made available to residents for use in their gardens.

Question 17

The persistent increase in the prices of goods and services is called:

Accepted Answer

Inflation refers to the persistent increase in the prices of goods and services, leading to a reduction in the purchasing power of money. Deflation is the opposite of inflation, where the prices of goods and services decrease. Predatory prices refer to the pricing strategy of setting low prices to drive competitors out of business. Recession refers to a significant decline in economic activity, and bid rigging refers to a form of illegal collusion amongst bidders in a market.

Question 18

Which of the following trends has increased the difficulty that marketers face when they try to grab the attention of consumers?

Accepted Answer

The trend of multitasking and divided attention among consumers has increased due to the proliferation of various devices and media platforms. This makes it more challenging for marketers to grab the consumer's attention and keep it focused on their product or service. The other options are not related to the difficulty that marketers face when trying to grab the attention of consumers.

Question 19

The strategic effort made by firms to supply customers with environmentally friendly merchandise is called:

Accepted Answer

The term used to describe the strategic effort made by firms to supply customers with environmentally friendly merchandise is green marketing.

Question 20

The pricing that is intended to drive competitors out of the market or keep competitors from entering the market by fixing very low prices is called:

Accepted Answer

Predatory pricing is defined as the pricing strategy where a company intentionally sets very low prices to drive competitors out of the market or keep competitors from entering the market. The company can afford to do this because it has a large market share, significant financial resources and can endure losses for a longer period than its competitors. However, predatory pricing is illegal in most countries and can lead to antitrust violations.

Quiz 3: Marketing Ethics