Question 1

A firm that is unable to obtain financing to manufacture new products is likely encountering negative pressures from:
A) the competitive environment.
B) the technological environment.
C) the economic environment.
D) the political/legal environment.
E) the cultural/social environment.

Accepted Answer

A firm's inability to obtain financing for new products is a reflection of the economic environment, which includes factors such as interest rates, inflation, and access to credit. The competitive, technological, political/legal, and cultural/social environments may also impact a firm's operations, but they are not directly related to its ability to obtain financing.

Question 2

X-Brand Bikes, a manufacturer of off-road bicycles, carefully developed a strategy for moving into South America. The strategy had poor results after interest rates and inflation rose rapidly in most of its South American markets, demonstrating the influence of the _____ on marketing strategy.
A) economic environment
B) technological environment
C) social environment
D) legal environment
E) political environment

Accepted Answer

The economic environment refers to factors such as interest rates, inflation, and economic conditions that can impact a company's marketing strategy. In this scenario, the poor results of X-Brand Bikes' strategy are attributed to the rise in interest rates and inflation in its South American markets, which are economic factors.

Question 3

A change in the _____ environment can affect consumer purchases of homes, cars, and other items usually bought on credit.
A) legal
B) political
C) social/cultural
D) technological
E) economic

Accepted Answer

Economic factors, such as changes in interest rates, inflation, or unemployment levels, can significantly impact consumer purchases made on credit. For example, high interest rates may discourage consumers from taking out loans to buy homes or cars, while low rates may encourage more borrowing and spending. Similarly, economic downturns may lead to decreased consumer confidence and less willingness to take on debt, while more stable economic conditions may have the opposite effect.

Question 4

________ are the firms that are considered to be the organization's closest challengers.
A) Aggressive rivals
B) Competitive rivals
C) Direct rivals
D) Indirect rivals
E) Passive rivals

Accepted Answer

Competitive rivals are the firms that directly compete with an organization in the same market or industry. They are also considered to be the organization's closest challengers because they share the same target market and are likely pursuing the same customers. Aggressive rivals may also be close challengers, but this term implies a more aggressive or hostile approach to competition. Direct rivals and indirect rivals are also similar terms but may not necessarily be as close of challengers as competitive rivals. Passive rivals, on the other hand, do not actively compete and so would not be considered close challengers.

Question 5

The economic environment:
A) Has no relationship to the technological environment.
B) Is not affected by the way all of the parts of the macro-marketing system interact.
C) Is the same from country to country.
D) Can change very rapidly.
E) Never requires marketing managers to make immediate changes in strategy.

Accepted Answer

The economic environment can change very rapidly, which can have a significant impact on marketing strategies. This is why marketing managers need to be vigilant and adjust their strategies accordingly. Option A is incorrect because the technological environment has a strong relationship with the economic environment. Option B is incorrect because the macro-marketing system includes all parts of the environment, including the economic environment. Option C is incorrect because the economic environment varies from country to country. Option E is incorrect because the economic environment often requires marketing managers to make immediate changes in strategy.

Question 6

Rising costs and inflation are part of the uncontrollable ______________ environment.
A) technological
B) economic
C) competitive
D) legal
E) cultural and social

Accepted Answer

Rising costs and inflation are related to economic factors such as changes in the market, supply and demand, and national monetary policies.

Question 7

Interest rates
A) often change with changes in the economy.
B) affect consumer markets, but not business customers.
C) usually decrease during periods of inflation.
D) do not directly affect the total price borrowers must pay for loans.
E) don't affect the prices buyers pay.

Accepted Answer

Interest rates often change with changes in the economy, such as fluctuations in inflation, unemployment, and overall economic growth.

Answer: D 
 Interest rates directly affect the total price borrowers must pay for loans, including both the principal amount borrowed and the interest charged on that amount over time.

Answer: E 
 This statement is incorrect as interest rates can directly impact the prices buyers pay for goods and services, particularly for larger purchases that require financing or loans.

Question 8

The economic environment
A) of an individual country has little effect on other countries.
B) refers to the application of science to convert resources to output.
C) includes changes in interest rates and inflation.
D) has little impact on an organization's marketing strategy.
E) does not change rapidly.

Accepted Answer

The economic environment includes changes in interest rates and inflation, both of which can have a significant impact on organizations' marketing strategies. Additionally, changes in one country's economic environment can also affect the economies of other countries, making choice A incorrect. Choice B refers to the concept of technology, not the economic environment, while choice D is false as economic changes are crucial to consider when creating a marketing strategy. Finally, the economic environment can change rapidly, making choice E incorrect.

Question 9

The _____ refers to how much one country's money is worth in another country's money.
A) monetary value
B) exchange rate
C) dollar value
D) net worth
E) purchasing power

Accepted Answer

The exchange rate is the measure of how much one country's currency is worth in another country's currency. Monetary value, dollar value, net worth, and purchasing power are all related to financial terms, but do not specifically refer to the exchange rate between two currencies.

Question 10

A marketing manager may ethically and actively seek information about current or potential competitors by
A) searching a firm's public website.
B) waiting at a landfill for competitors' trash to find copies of confidential company reports.
C) using computer "hackers" to break into a competitor's computer network.
D) hiring people from competing firms and then asking them confidential information about the competitor.
E) spying on competitors to obtain trade secrets.

Accepted Answer

Option A is the only ethical way to seek information about competitors. It is considered ethical because it uses publicly available information that competitors have voluntarily made public on their website. The other options involve illegal activities like stealing confidential information, espionage or hacking.

Question 11

Swanson Beverages, Inc., is using ______________ to compare the strengths and weaknesses of its current target market and marketing mix with what its competitors are doing (or are likely to do).
A) clustering
B) scenario analysis
C) brand positioning
D) marketing mix review
E) competitor analysis

Accepted Answer

Competitor analysis is the process of evaluating the strengths and weaknesses of current and potential competitors. It helps companies like Swanson Beverages, Inc. to identify the strengths and weaknesses of their own marketing mix by comparing it with what competitors are doing or are likely to do. It is an essential tool for companies to stay competitive and make informed marketing decisions.

Question 12

The marketing manager for a financial services firm knows that customer preferences for mutual funds and bond accounts will differ depending on the current interest rate. She must plan her offerings with the _____ environment in mind.
A) economic
B) social
C) technological
D) cultural
E) legal

Accepted Answer

The interest rate is a key economic factor that influences consumer behavior when it comes to investing in mutual funds or bond accounts. A change in interest rates can affect the attractiveness of different investment options and impact customer preferences. Therefore, the marketing manager must consider the economic environment when planning her offerings.

Question 13

When a local bank in Kansas City makes loans to its small business customers, it charges them an interest rate for borrowing money. Interest rates are part of the ____________ environment.
A) cultural and social
B) economic
C) legal
D) political
E) competitive

Accepted Answer

Interest rates are directly related to the economic environment, as they are impacted by factors such as inflation, monetary policy, and market demand for credit.

Question 14

Competitive barriers
A) facilitate cooperation among competitors.
B) may make it difficult for a firm to compete in a market.
C) refer to legal constraints on importing.
D) are the weaknesses in a competitor's strategy.
E) are a firm's closest competitors.

Accepted Answer

Competitive barriers are obstacles that make it difficult for a firm to compete in a market, such as high entry costs, exclusive distribution agreements, and patents held by established firms. While some barriers may facilitate cooperation among competitors (such as forming industry associations), this is not their primary purpose or effect. Competitive barriers do not necessarily refer to legal constraints on importing, weaknesses in a competitor's strategy, or a firm's closest competitors.

Question 15

Regarding the competitive environment:
A) It is easy to find environments that are "competitor-free."
B) Monopoly situations are more common than are situations characterized by monopolistic competition.
C) "Competitive rivals" are a firm's closest competitors.
D) Competitor analysis should begin with an identification of competitors from the viewpoint of the manager, not the consumer.

Accepted Answer

Competitive rivals are firms that offer similar products or services to a firm's target market, and are typically the closest and most direct competitors. Option A is incorrect because truly "competitor-free" environments are extremely rare, if not impossible. Option B is incorrect because monopolies are very rare in most markets, and are typically subjected to government regulation. Option D is incorrect because competitor analysis should begin with an identification of all potential competitors from the standpoint of the customer.

Question 16

Which of the following demonstrates how the technological environment is changing the way marketers promote products?
A) Marketing aimed at youth is increasingly regulated by governments.
B) Search engines match consumer searches with relevant banner ads.
C) Marketers make routine claims that products are eco-friendly.
D) Manufacturers partner with local retailers to buy ads that feature both firms.
E) New laws regulate consumer privacy.

Accepted Answer

The use of search engines to match consumer searches with relevant banner ads is a result of the technological environment and how it has changed the way marketers promote products. This is an example of targeted advertising using technology.

Answer: C
 Marketers making routine claims that products are eco-friendly is a result of the changing technological environment. Consumers are increasingly concerned about the environment, and marketers are using technology to promote products that meet this demand. However, this answer is not as strong as option B, as it does not directly demonstrate the use of technology in marketing.

Therefore, the best choice is B.

Question 17

Increased demand for new homes due to low interest rates is an example of the impact of the ___________ environment.
A) technological
B) cultural
C) competitive
D) economic
E) social

Accepted Answer

The increased demand for new homes is a direct result of the economic environment, specifically low interest rates. Factors such as interest rates, inflation, employment, and government policies are all part of the economic environment.

Question 18

The economies of the world are connected and changes in one economy quickly affect others. One key reason for this is that:
A) The amount of international trade is decreasing.
B) The amount of international trade is difficult to forecast.
C) The amount of international trade is increasing.
D) The amount of international trade is unstable.
E) The amount of international trade is stable.

Accepted Answer

The increasing amount of international trade means that there are more goods and services being exchanged between countries, which increases global interdependence, and changes in one economy will affect others.

Question 19

Low consumer spending and a lack of adequate financing are conditions that arise mostly due to factors in:
A) the competitive environment.
B) the cultural and social environment.
C) the technological environment.
D) the political environment.
E) the economic environment.

Accepted Answer

Low consumer spending and a lack of adequate financing are primarily caused by economic factors such as inflation, high interest rates, unemployment, and recession. The economic environment includes all the factors and institutions that have an impact on the economy, such as government policies, economic policies, and international trade. Therefore, choice E - the economic environment - is the best answer.

Question 20

A ________ is an organized table that compares the strengths and weaknesses of a company with those of its competitive rivals.
A) competitive advantage
B) competitor matrix
C) insight table
D) positioning graph
E) competitor analysis

Accepted Answer

A competitor matrix is a matrix that shows the strengths and weaknesses of a company, as well as its competitors. It is a tool used in competitor analysis to determine the comparative advantages and disadvantages of different companies in a given market. The other options (A, C, D, E) are either specific tactics or broader concepts that are not as specifically related to the comparison of strengths and weaknesses between companies.

Quiz 3: Evaluating Opportunities in the Changing Marketing Environment

A firm that is unable to obtain financing to manufacture new products is likely encountering negative pressures from:

X-Brand Bikes, a manufacturer of off-road bicycles, carefully developed a strategy for moving into South America. The strategy had poor results after interest rates and inflation rose rapidly in most of its South American markets, demonstrating the influence of the _____ on marketing strategy.

A change in the _____ environment can affect consumer purchases of homes, cars, and other items usually bought on credit.

________ are the firms that are considered to be the organization's closest challengers.

The economic environment:

Rising costs and inflation are part of the uncontrollable ______________ environment.

Interest rates

The economic environment

The _____ refers to how much one country's money is worth in another country's money.

A marketing manager may ethically and actively seek information about current or potential competitors by

Swanson Beverages, Inc., is using ______________ to compare the strengths and weaknesses of its current target market and marketing mix with what its competitors are doing (or are likely to do) .

The marketing manager for a financial services firm knows that customer preferences for mutual funds and bond accounts will differ depending on the current interest rate. She must plan her offerings with the _____ environment in mind.

When a local bank in Kansas City makes loans to its small business customers, it charges them an interest rate for borrowing money. Interest rates are part of the ____________ environment.

Competitive barriers

Regarding the competitive environment:

Which of the following demonstrates how the technological environment is changing the way marketers promote products?

Increased demand for new homes due to low interest rates is an example of the impact of the ___________ environment.

The economies of the world are connected and changes in one economy quickly affect others. One key reason for this is that:

Low consumer spending and a lack of adequate financing are conditions that arise mostly due to factors in:

A ________ is an organized table that compares the strengths and weaknesses of a company with those of its competitive rivals.