Question 1

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 part of the economic environment.

Question 2

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

Changes in the economy are often accompanied by changes in the interest rate and inflation.

Question 3

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

Interest rates and inflation are part of the economic environment.

Question 4

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 the conditions that may make it difficult, or even impossible, for a firm to compete in a market.

Question 5

Which of the following observations is NOT TRUE of monopolistic competition?
A) A number of different firms offer marketing mixes that at least some customers see as different.
B) Marketing managers try to differentiate very similar products by relying on other elements of the marketing mix.
C) Each competitor tries to get a monopoly in its own target market.
D) Most marketing managers in developed economies do not face monopolistic competition.
E) Competition exists because some customers see various alternatives as substitutes.

Accepted Answer

Most marketing managers in developed economies face monopolistic competition.

Question 6

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

In the economic environment, interest rates directly affect the total price borrowers must pay for products. So the interest rate affects when, and if, they will buy.

Question 7

In monopolistic competition,
A) one firm completely controls a broad product-market.
B) each competitor tries to get control in its "own" target market.
C) competitors offer the same marketing mix.
D) different marketing mixes are nevertheless seen as the same by all customers.
E) all customers view various alternatives as substitutes.

Accepted Answer

In monopolistic competition, each competitor tries to get control (a monopoly) in its "own" target market.

Question 8

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, and does, change quite rapidly.

Question 9

___________ ___________ 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 firms that will be the closest competitors.

Question 10

Most product-markets head toward ______ over the long run.
A) pure competition
B) monopolistic competition
C) capitalistic competition
D) monopoly
E) collectivism

Accepted Answer

Most product-markets head toward pure competition over the long run.

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 an organized approach for evaluating the strengths and weaknesses of current or potential competitors' marketing strategies.

Question 12

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

A firm that puts all of its marketing information on a public website for customers also makes it readily available to competitors.

Question 13

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

In the economic environment, interest rates directly affect the total price borrowers must pay for products. So the interest rate affects when, and if, they will buy.

Question 14

In a _____________ situation, competitors offer very similar products which customers see as close substitutes, and managers just compete with lower and lower prices as profit margins shrink.
A) capitalistic competition
B) pure competition
C) monopoly
D) monopolistic competition
E) collectivist competition

Accepted Answer

In a pure competition, competitors offer very similar products. Because customers see the different available products as close substitutes, managers just compete with lower and lower prices, and profit margins shrink.

Question 15

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

Changes in the economy are often accompanied by changes in the interest rate. It also affects consumer purchases of homes, cars, and other items usually bought on credit.

Question 16

Competitive barriers in the Japanese market for disposable diapers impacting Procter and Gamble included all of the following except:
A) Uni-Charm and Kao are leading brands in Japan.
B) Uni-Charm and Kao have established distribution channels in Japan.
C) Most grocery stores are small in Japan and require frequent restocking.
D) Pampers offers better fit and absorbency.

Accepted Answer

Procter and Gamble was about to replace its original Pampers, which were selling poorly, with a new version that offered improved fit and better absorbency but instead changed its packaging to take up less space and offered wholesalers and retailers better markups.

Question 17

____ refers to market situation where one firm completely controls a broad product-market.
A) Monopoly
B) Oligopoly
C) Pure competition
D) Monopolistic competition
E) Collectivist competition

Accepted Answer

In monopoly situations, one firm completely controls a broad product-market.

Question 18

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 will be the closest competitors.

Question 19

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

Changes in the economy are often accompanied by changes in the interest rate.

Question 20

Which of the following statements about the competitive environment is FALSE?
A) Competition-free environments are rare.
B) Marketing managers should choose strategies that avoid head-on competition.
C) A firm that has a marketing mix that its target market sees as better than its competitors' has a competitive advantage.
D) Over the long run, most product-markets tend toward monopolistic competition.
E) In a competitor analysis, the firm's first step should be to identify all potential competitors.

Accepted Answer

Most product-markets head toward pure competition over the long run.

Quiz 3: Evaluating Opportunities in the Changing Marketing Environment

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

The economic environment

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.

Competitive barriers

Which of the following observations is NOT TRUE of monopolistic competition?

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.

In monopolistic competition,

The economic environment:

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

Most product-markets head toward ______ over the long run.

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

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

In a _____________ situation, competitors offer very similar products which customers see as close substitutes, and managers just compete with lower and lower prices as profit margins shrink.

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

Competitive barriers in the Japanese market for disposable diapers impacting Procter and Gamble included all of the following except:

____ refers to market situation where one firm completely controls a broad product-market.

Regarding the competitive environment:

Interest rates

Which of the following statements about the competitive environment is FALSE?