Question 1

One of the world's largest publishers was totally unprepared for recent increases in the demand for digital books. During 2011, the sale of e-books exceeded the sales of traditional printed paperback books for the first time. If the publisher had __________, it would have been more prepared for this shift in its marketing environment.
A)optimized its distribution by eliminating local and chain store bookstores (like Borders) that failed to meet their sales quotas
B)noticed the change in the demographics of book readers in general
C)noticed the behavioral changes in moviegoers, who now prefer to view 2D and 3D movies in IMAX theaters
D)shifted funds from product development to advertising
E)tracked, as part of its ongoing environmental scanning activities, the sales of e-books and e-book readers sold by others

Accepted Answer

By tracking the sales of e-books and e-book readers sold by others, the publisher could have better understood the shift towards digital books and adjusted their marketing strategies accordingly. This would have allowed them to be more prepared for the increase in demand for digital books. The other options either do not relate to the shift towards digital books or would not have helped the publisher prepare for this change in their marketing environment.

Question 2

Pending federal legislation will require all online retailers to collect state sales taxes from customers. This would affect online sellers such as Virtual Vineyards, which now only collects state sales taxes from customers who reside in California - its home state. This pending legislation would be an example of which environmental force?
A)social
B)economic
C)technological
D)competitive
E)regulatory

Accepted Answer

The pending federal legislation is a regulatory force as it is a proposed law/regulation that would require online retailers to collect state sales taxes from all customers, regardless of their location.

Question 3

As the director of marketing for Littleton Hospital, 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?
A)The number of people in the geographic area who are 65 years or older will increase by 23 percent during the next five years.
B)By the year 2015, baby boomers will control more than 50 percent of all consumer expenditures in the U.S.
C)The Littleton community has seen a rise in dual-income households.
D)By the year 2025, robotics will play a major role in surgical procedures.
E)Twenty percent of the local population is of Hispanic origin.

Accepted Answer

The increasing number of elderly individuals in the geographic area will have a significant impact on the healthcare needs and services required by the community in the next five years, making it the most important environmental trend to consider in the marketing plan for Littleton Hospital.

Question 4

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
A)economic.
B)competitive.
C)technological.
D)social.
E)regulatory.

Accepted Answer

Regulatory forces are likely the least important for The Lemon Tree as the focus is on customer tastes, competition, and technology for inventory and sales, rather than compliance or legal issues.

Question 5

Which of the following statements regarding environmental scanning is the most accurate?
A)Environmental scanning changes the marketing environment.
B)Environmental scanning identifies and interprets potential trends.
C)Environmental scanning should be done at least every five years.
D)Environmental scanning focuses primarily on ecological factors.
E)There is too much information generated from environmental scanning to make it viable for small firms.

Accepted Answer

Environmental scanning involves the process of identifying potential trends and changes in the market environment. This allows firms to better adjust their marketing strategies in response to changes in the environment. It is an ongoing process that should be done regularly, rather than every five years. While ecological factors are important, environmental scanning looks at a wide range of factors such as economic, social, technological, and political factors to get a comprehensive view of the market environment. While there may be a lot of information generated from environmental scanning, it is still viable for small firms as they can focus on the most relevant information for their business.

Question 6

All of the following statements about the environmental forces that have influenced Facebook are true EXCEPT:
A)the Federal Trade Commission (FTC) has had a laissez faire policy of not interfering with the development and marketing of Facebook and other social media websites.
B)technological advances in data storage, server speed, and software integration have made Facebook fast and convenient.
C)Google and Facebook are becoming fierce competitors for the role of society's depository of information.
D)the cost of wireless connectivity, Internet service, and smartphones rapidly declined and made social networking affordable for consumers around the world.
E)people became increasingly interested in the social aspects of the Internet, sharing more and more information about themselves.

Accepted Answer

The statement about the FTC having a laissez faire policy is not true. In fact, the FTC has taken actions against Facebook in the past, such as the 2019 settlement over privacy violations.

Question 7

Facebook has approximately what fraction of the world's population as customers?
A)one-half
B)one-third
C)one-quarter
D)one-fifth
E)one-seventh

Accepted Answer

In 2004 Mark Zuckerberg started Facebook in his Harvard dorm room.His vision was not just to be a company,but to connect everyone in the world.Today,with 1.8 billion users,or nearly one-quarter of the world's population,Facebook is well on its way to accomplishing that vision.

Question 8

Using smartphones, one can watch the news, shoot videos, browse the Internet, take pictures, and listen to music. Improved features are added with each smartphone introduced by Apple, Samsung, BlackBerry, and the like. As a result, existing customers often want to replace their existing smartphones with new models or brands every two years when their contracts expire. This increase in demand is due mostly to changes in __________, an environmental force.
A)competition
B)social culture
C)technology
D)regulations
E)the economy

Accepted Answer

The increase in demand for new smartphones is due to improvements in technology, such as the introduction of new features and advancements in existing features.

Question 9

The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is referred to as
A)significant trend analysis.
B)organizational scanning.
C)environmental scanning.
D)a SWOT analysis.
E)marketing intelligence.

Accepted Answer

Environmental scanning is the process of gathering information about external events and analyzing them to identify potential trends that could impact the organization. It involves monitoring the external environment to identify opportunities and threats, and staying up-to-date on industry trends, consumer behaviors, and regulatory changes. This information is then used by organizations to make strategic decisions and adjust their operations accordingly.

Question 10

Environmental trends arise from all of the following forces EXCEPT:
A)competitive.
B)economic.
C)regulatory.
D)geographical.
E)social.

Accepted Answer

Geographical forces do not directly impact environmental trends. Environmental trends are shaped by economic, social, regulatory, and competitive forces, which can impact natural resources, pollution levels, and other environmental factors. Geographical factors may play a role in how these other forces impact the environment, but are not a direct driver of environmental trends.

Question 11

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?
A)social
B)economic
C)technological
D)competitive
E)regulatory

Accepted Answer

The proposed law is a regulation that would restrict the use of tanning beds for minors, making it an example of a regulatory environmental force.

Question 12

The set of environmental forces that consists of the demographic characteristics of the population and its culture is referred to as
A)social forces.
B)economic forces.
C)consumer forces.
D)cultural forces.
E)market forces.

Accepted Answer

Key term definition-social forces.

Question 13

Environmental scanning refers to
A)assessing any possible negative impact a firm's activities might have on the local ecology.
B)continually acquiring information on events occurring outside the organization to identify and interpret potential trends.
C)setting up a regular schedule to assess the performance of different divisions within a firm.
D)initiating an internal talent search to identify employees who can think "outside the box" to generate solutions to marketing problems caused by changes in the marketing environment.
E)requiring all employees to spend time outside the office to avoid the "ivory tower" syndrome

Accepted Answer

Environmental scanning refers to continually acquiring information on events occurring outside the organization to identify and interpret potential trends. This includes monitoring the political, economic, social, technological, environmental, and legal factors that may impact the organization. It helps organizations to anticipate and prepare for changes in the external environment and stay competitive.

Question 14

Local newspaper readership has declined significantly in recent years. Not only are traditional newspapers losing subscribers, they are also losing advertisers. To combat these trends, many newspaper publishers now offer online versions of their printed newspapers. This is most likely a response to which environmental force?
A)economic, since few can afford a newspaper today
B)competitive, resulting from new, smaller local newspapers that are flourishing
C)technological, since high-speed printing presses have become more easy to use
D)social, resulting from changing consumer preferences for information delivered online
E)regulatory, since the government provides tax incentives for paper-based products

Accepted Answer

The decline in newspaper readership is a social trend, driven by changing consumer preferences for accessing information online. The shift to offering online versions of printed newspapers is a response to this trend.

Question 15

The social forces in the environment include the __________ of the population and its culture.
A)living standards
B)social classes
C)cohorts
D)ethics
E)demographic characteristics

Accepted Answer

The answer of The social forces in the environment include...

Question 16

The demographic characteristics of the population and its culture are referred to as
A)attitudinal forces.
B)psychographic forces.
C)social forces.
D)cultural forces.
E)market forces.

Accepted Answer

The answer of The demographic characteristics of the population and...

Question 17

A firm conducting an environmental scan of the marketplace might uncover key __________ like the impact of new robot technology and the growth of online privacy and regulation.
A)profits
B)responsibilities
C)idealisms
D)codes
E)trends

Accepted Answer

Trends are the most appropriate choice as they refer to the general direction in which something is developing or changing. In this case, the firm is attempting to identify key trends in the marketplace that could impact their business. The other options, such as profits, responsibilities, idealisms, and codes, while important, are not as relevant to the task of conducting an environmental scan.

Question 18

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?
A)social
B)economic
C)technological
D)competitive
E)regulatory

Accepted Answer

The sponsoring of "women-only" networking events by consulting firms is an example of a social force, as it reflects a growing trend towards promoting gender diversity and inclusion in the workplace.

Question 19

The purpose of environmental scanning is to
A)only identify trends in the marketplace.
B)only interpret trends in the marketplace.
C)only forecast trends in the marketplace.
D)identify, interpret, and forecast trends in the marketplace.
E)only identify and interpret trends in the marketplace

Accepted Answer

The answer of The purpose of environmental scanning is to
A)only...

Question 20

A growing trend to "Buy American" has caused 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)a reactive strategy that would impact the competitive environmental force.
B)a proactive maneuver to manipulate and impact the social environmental force.
C)a positive result from regulatory and economic environmental forces.
D)a positive response to a technological environmental force.
E)a negative impact as a result of adverse competitive, regulatory, and technological environmental forces.

Accepted Answer

Toyota's decision to build a manufacturing plant in the United States, if influenced by a decline in the value of the U.S. dollar, reflects a positive result from regulatory and economic environmental forces. The company would likely benefit from lower import tariffs and taxes, as well as proximity to American consumers.

Quiz 3: Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

As the director of marketing for Littleton Hospital, 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?

Which of the following statements regarding environmental scanning is the most accurate?

All of the following statements about the environmental forces that have influenced Facebook are true EXCEPT:

Facebook has approximately what fraction of the world's population as customers?

The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is referred to as

Environmental trends arise from all of the following forces EXCEPT:

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?

The set of environmental forces that consists of the demographic characteristics of the population and its culture is referred to as

Environmental scanning refers to

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

The demographic characteristics of the population and its culture are referred to as

A firm conducting an environmental scan of the marketplace might uncover key __________ like the impact of new robot technology and the growth of online privacy and regulation.

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?

The purpose of environmental scanning is to