Deck 3: The Global Environment

Question 1

A measure of the market value of all officially recognized final goods and services produced within a country in a given period is referred to as

A)the balance of trade.
B)gross domestic product.
C)the consumer price index.
D)the currency exchange rate.
E)purchasing power parity.

Answer 1

B

Question 2

Overall GDP is the most common gauge of

A)the balance of trade between countries.
B)fluctuations in currency exchange rates.
C)the consumer price index and purchasing power parity.
D)the overall expansion or contraction of an economy.
E)unemployment and future job forecasting.

Answer 2

D

Question 3

Which of the following is the accurate cause of a recession?

A)The consumer price index falls below the average yearly standard.
B)GDP declines for two or more consecutive quarters.
C)Inflation rises for two or more consecutive quarters.
D)The unemployment rate declines for two or more consecutive quarters.
E)Inflation and unemployment both rise consecutively.

Answer 3

B

Question 4

Karlee needed to pick up some toothpaste from the store.She was surprised to find that the store was out of her usual brand,Crest.Rather than go to another store,she decided to buy a tube of Colgate instead.In this example,Colgate represents

A)an unsought good.
B)a substitute product.
C)lateral competition.
D)indirect competition.
E)a disposable product.

Question 5

Compare the following product offerings.Which is an example of indirect competition?

A)Burger King and Subway
B)Crest and Colgate toothpaste
C)Coca-Cola and Pepsi
D)Sirius XM radio and Pandora
E)Dunkin' Donuts and Krispy Kreme Doughnuts

Question 6

Daniel is looking to buy a hybrid vehicle because he is noticing that the price of gasoline continues to rise compared to years past.The rise in the price of gasoline is most likely a result of

A)deflation.
B)a recession.
C)a rise in GDP.
D)inflation.
E)an increase in purchasing power.

Question 7

A situation in which products that perform the same function compete against one another is referred to as

A)indirect competition.
B)functional competition.
C)lateral competition.
D)primary competition.
E)direct competition.

Question 8

Compare the following product offerings.Which is the best example of direct competition?

A)carpet cleaning stores and hardware stores that rent carpet cleaners
B)Google and Yahoo
C)Coca-Cola and Arizona Iced Tea
D)a pizza restaurant and a fried chicken restaurant
E)Burger King and Subway

Question 9

Compare the following statements to determine which one accurately depicts how income is distributed across the U.S.population.

A)Over the past several decades,there has been a robust shift in the lowest wage earners moving upward to the middle class.
B)The top wage earners of the U.S.population are earning only a small percentage of the country's adjusted gross income.
C)Income for the middle class in the United States has consistently grown faster than any other wage-earning bracket.
D)Over the past several decades,income for the highest wage earners grew at a much quicker pace than for households in the bottom wage-earning bracket.
E)Over the past several decades,there has been little shift in any of the wage-earning brackets of the U.S.population.

Question 10

A sudden drop in the average consumer income would be an example of which external force affecting the marketing environment?

A)legal
B)sociocultural
C)technological
D)political
E)economic

Question 11

A firm that is engaged in environmental scanning is monitoring developments outside of the firm's control in order to detect and respond to

A)the strengths of the firm.
B)threats and opportunities.
C)the weaknesses of the firm.
D)market opportunities associated with environmental concerns.
E)environmental issues associated with the firm's operations.

Question 12

Monitoring developments outside of the firm's control with the goal of detecting and responding to threats and opportunities is called

A)competitive analysis.
B)environmental scanning.
C)data mining.
D)brand positioning.
E)market assessment.

Question 13

A measure of how optimistic consumers are about the overall state of the economy and their own personal finances is referred to as

A)purchasing confidence.
B)consumer confidence.
C)consumer expectations.
D)purchasing power.
E)market confidencE.

Question 14

If the cost of groceries goes up by 10 percent this year,the amount of groceries you can buy for $50 decreases by that same 10 percent.This is an example of

A)a decline in GDP.
B)a decrease in purchasing power.
C)a recession.
D)deflation.
E)a rise in GDP.

Question 15

Which of the following is the correct definition of inflation?

A)the rise in the rate of unemployment due to a slowing economy
B)the rise in the amount of goods and services that can be purchased for a specific amount of money
C)an increase in the general level of prices of products in an economy over a period of time
D)a decline in consumer confidence about the overall state of the economy and their own personal finances
E)a decline in gross domestic product for two or more consecutive quarters

Question 16

Direct competition is also known as

A)in-house competition.
B)market competition.
C)lateral competition.
D)brand competition.
E)substitute product competition.

Question 17

The six major external factors that influence the marketing environment of a firm are economic,demographic,sociocultural,technological,legal,and

A)environmental.
B)financial.
C)international.
D)domestic.
E)political.

Question 18

Indirect competition occurs when

A)consumers choose between two products that perform the same function.
B)a company introduces a new product to its product line.
C)products are marketed to a new consumer segment.
D)products provide alternate solutions to the same market.
E)consumers purchase products that they did not intend to buy.

Question 19

The political,economic,demographic,sociocultural,technological,and legal factors that affect a company's ability to meet its marketing goals are all part of

A)a company's demographic characteristics.
B)a company's internal forces.
C)the marketing environment.
D)the organizational environment.

Question 20

Which of the following is not considered to be a demographic characteristic?

A)education level
B)gender
C)ethnicity
D)consumer confidence
E)age

Question 21

The description of human populations based on characteristics such as age,gender,ethnicity,and education level is referred to as

A)psychographics.
B)demographics.
C)sociocultural analysis.
D)consumer group profiling.
E)statistical analysis.

Question 22

According to your text,of all the external factors that affect the marketing environment,which one represents the most significant challenges,as well as the most significant opportunities,for marketing professionals?

A)political
B)sociocultural
C)demographic
D)economic
E)technological

Question 23

According to your text,one of the biggest sociocultural changes in the United States over the past half century has been

A)the immigration of Hispanics into the country.
B)the increased use of the Internet for purchasing consumer products.
C)the gradual increase of college graduates in the workplace.
D)the shift from one-income families to two-income and single-parent households.
E)the decline of females as the primary purchasers of products.

Question 24

Which of the following is the fastest growing demographic group in the United States?

A)seniors
B)young adults
C)college-age males
D)teenagers
E)middle-aged women

Question 25

The amount of spending money available to households after paying taxes is called

A)discretionary income.
B)at-will income.
C)disposable income.
D)tax-free income.
E)unaccountable incomE.

Question 26

The generation of children born between 1946 and 1964 is retiring at a rate of 10,000 per day.What is the name of this demographic group?

A)Millennials
B)Generation X
C)Generation Y
D)baby boomers

Question 27

The external marketing factor that refers to the combination of social and cultural factors that affect individual development is

A)sociocultural.
B)culturalism.
C)demographics.
D)ethnicity.
E)human naturE.

Question 28

Compare the following statements to determine which one is accurate regarding marketing on a global scale versus marketing domestically?

A)Small businesses are not affected by global trends like large corporations are.
B)There is no difference between how products are marketed globally versus domestically.
C)Most U.S.firms do not need to consider the global marketing environment in any context.
D)Environmental scanning on a global scale is more complex than it is in the domestic environment.
E)The external marketing factors that are considered when marketing domestically do not apply when marketing products globally.

Question 29

Currently,females account for what percentage of all consumer purchases in the United States?

A)5 percent
B)12 percent
C)35 percent
D)60 percent
E)85 percent

Question 30

Which regulation was passed to eliminate monopolies and guarantee competition?

A)the Telephone Consumer Protection Act (1991)
B)the Robinson-Patman Act (1936)
C)the Sherman Antitrust Act (1890)
D)the Wheeler-Lea Amendment (1938)
E)the Fair Packaging and Labeling Act (1966)

Question 31

A marketer that uses social media sites to engage potential customers is most likely targeting which demographic group?

A)Generation X
B)Millennials
C)silent generation
D)baby Boomers

Question 32

Compare the following statements and select the one that reflects your text's assertion as to why educated consumers are prime targets for marketing strategies.

A)Educated consumers are more willing to spend money than uneducated consumers.
B)Educated consumers are more likely to earn significantly more money throughout the course of their lifetime.
C)Educated consumers typically have less free time and therefore spend money on products that save them time and make their lives easier.
D)Educated consumers typically have more access to various forms of media and therefore are easier to target as a consumer group.
E)Educated consumers know that in order to keep the economy moving,people must spend money.

Question 33

As described in your text,how did marketers at Disney utilize technology to provide a more hassle-free experience at their theme parks?

A)by providing users with a park pass that could be used for their entire stay
B)by installing monitor screens showing wait times for various rides/attractions
C)by installing smartphone charging stations
D)by introducing wristbands with a radio-frequency identification device
E)by introducing a laser stamp that could be used instead of a park pass

Question 34

The consumer protection agency for the United States is the

A)Bureau of Consumer Financial Protection.
B)Consumer Protection Commission.
C)Federal Communications Commission.
D)Federal Trade Commission.
E)Food and Drug Administration.

Question 35

What external marketing factor is at work when political action committees raise money to help elect individuals to promote a particular issue related to their industries?

A)economic
B)legal
C)sociocultural
D)political
E)technological

Question 36

Which ethnic group population in the United States is expected to almost double by the year 2050?

A)African Americans
B)Pacific Islanders
C)Eastern Europeans
D)Hispanics
E)Asian Americans

Question 37

While shopping for back-to-school clothes,Josie uses apps on her smartphone to comparison shop,and to obtain coupons and fashion advice.What external factor affecting the marketing environment does this represent?

A)economic
B)sociocultural
C)demographic
D)technological
E)legal

Question 38

What was the purpose of the Wheeler-Lea Act (1938)?

A)It made deceptive and misleading advertising illegal.
B)It established the Federal Trade Commission.
C)It eliminated monopolies and guaranteed competition.
D)It guaranteed that product packages are labeled correctly.
E)It banned unfair credit card rate increases.

Question 39

Marketers are particularly interested in targeting baby boomers because they typically possess which two things that marketing professionals seek?

A)higher paying jobs and greater interest in leisure activities
B)higher education levels and disposable income
C)disposable income and free time
D)higher paying jobs and higher education levels
E)greater purchasing power and more consumer confidence

Question 40

What term refers to how the value of one country's currency changes in relation to the value of other currencies?

A)currency fluctuation
B)currency exchange
C)currency expectation
D)value exchange
E)value fluctuation

Question 41

NAFTA is a trade agreement between

A)the United States,Canada,and Mexico.
B)the United States and China.
C)Brazil,China,and India.
D)the United States,Mexico,and Brazil.
E)the European Union and the United States.

Question 42

Taxes on imports and exports between countries are called

A)import/export fees.
B)trade restrictions.
C)duties.
D)tariffs.
E)concessions.

Question 43

Analyze the following statements to determine what would happen if the value of the euro appreciates relative to the dollar.

A)The spending power of both American and European consumers would increase.
B)It would reduce the spending power of American consumers seeking to buy European products.
C)It would reduce the spending power of European consumers seeking to buy American products.
D)It would increase the spending power of American consumers seeking to buy European products.
E)The price of goods and services for European products would become evenly matched with American products.

Question 44

The largest share of U.S.exports is to

A)the European Union.
B)China.
C)Canada and Mexico.
D)Canada and Japan.
E)Brazil and India.

Question 45

What was one of the key goals of the North American Free Trade Agreement?

A)the elimination of tariffs
B)the establishment of trade embargoes
C)the equalization of import/export fees
D)the establishment of trade sanctions
E)the allowance of agricultural exports

Question 46

What country has been criticized for undervaluing its currency?

A)China
B)United States
C)Japan
D)Brazil
E)Great Britain

Question 47

Which country belonging to the DR-CAFTA trade agreement has the largest economy?

A)Nicaragua
B)Dominican Republic
C)Costa Rica
D)Honduras
E)El Salvador

Question 48

Consider the following activities to determine which one is not a function of the International Monetary Fund.

A)foster international monetary cooperation
B)regulate trade among participating countries
C)secure financial stability
D)reduce poverty around the world
E)facilitate international trade

Question 49

CAFTA is a trade agreement for countries in

A)Europe.
B)Central America.
C)North America.
D)Africa.
E)Asia.

Question 50

Which of the following acronyms stands for the international organization that regulates trade among participating countries and helps importers and exporters conduct their business?

A)NAFTA
B)NATO
C)WTO
D)IMF
E)CAFTA

Question 51

When it comes to income distribution,what income class is the marketing professional particularly attracted to?

A)the top wage earners
B)lower-income households
C)those below the poverty line
D)middle-income households
E)upper-income households

Question 52

According to your text,what provides the most reliable picture of a country's purchasing power?

A)its level of gross domestic product
B)a stable rate of currency fluctuation
C)its income distribution
D)a high level of consumer confidence
E)an appreciating currency value

Question 53

What country joined the Central America Free Trade Agreement in 2004?

A)Cuba
B)United States
C)Dominican Republic
D)Mexico
E)Brazil

Question 54

When marketers for Walt Disney World in Florida attract French and British families by advertising the resort's new affordability for Europeans,what global marketing environment factor are they employing?

A)currency fluctuation
B)lowered trade barriers
C)international economic cooperation
D)income distribution levels
E)cultural fit

Question 55

Currency fluctuations can provide marketing opportunities

A)only internationally,but not domestically.
B)only if currency exchange rates remain stable.
C)only when a currency is appreciating.
D)only when a currency is depreciating.
E)whether a currency is appreciating or depreciating.

Question 56

The price of one country's currency in terms of another country's currency is referred to as

A)the currency exchange rate.
B)the currency expectation rate.
C)the value exchange rate.
D)the currency fluctuation rate.
E)the value fluctuation ratE.

Question 57

Which of the following generated an estimated 25 percent share of the global gross domestic product,making it the largest economy in the world in 2014?

A)China
B)the Central American countries of DR-CAFTA
C)the United States
D)the European Union
E)the North American countries of NAFTA

Question 58

A nation's purchasing capability tends to increase when the proportion of

A)upper-income households increases.
B)middle-income households increases.
C)top wage earners increases.
D)top wage earners decreases.
E)lower-income households increases.

Question 59

International trade agreements,monetary unions,and organizations can impact the environment in which a firm operates in all of the following ways except

A)they can make it easier to bypass regulations on economic activity.
B)they can affect what the currency exchange rate is between countries.
C)they can affect what competition firms will encounter in the domestic market.
D)they can affect how easy it is for firms to enter a foreign market.
E)they can facilitate the exchange of money and products across borders.

Question 60

Which of the following organizations was formed in 1995,is headquartered in Geneva,Switzerland,and with its 162 members represents more than 97 percent of the world's population?

A)WTO
B)IMF
C)NATO
D)UN
E)NAFTA

Question 61

What are the three sources of funding that nonprofit organizations rely on?

A)grants,federal funds,and individual donations
B)grants,advertising revenue,and individual donations
C)grants,special events,and individual donations
D)special events,corporate sponsorships,and individual donations
E)federal funds,state funds,and individual donations

Question 62

Instead of watching movies on cable TV,Isabel has chosen instead to subscribe to Netflix.Netflix would be considered a _______ product because it performs a similar function to cable movie stations.

Question 63

During the economic recession that began in December of 2007,Americans reduced their overall charitable giving by approximately

A)50 percent.
B)70 percent.
C)10 percent.
D)2 percent.
E)20 percent.

Question 64

When marketers use Facebook to increase awareness and enhance relationships with donors,they are responding to which type of external force in the marketing environment?

A)demographics
B)economic
C)sociocultural
D)legal
E)technological

Question 65

When products provide alternate solutions to the same market,_______ competition has occurred.

Question 66

Consider the following statements to determine which one accurately describes the concept of consumer ethnocentrism.

A)a belief by residents of a country that the goods and services they produce are superior to that of other countries
B)a belief that the world's goods and services should be distributed fairly by all nations
C)a belief by residents of a country that it is inappropriate or immoral to purchase foreign-made goods or services
D)a measure of how optimistic consumers are about the overall state of the economy and their own personal finances
E)a measure of the amount of goods and services that can be purchased based on the currency exchange rate

Question 67

In a competitive environment,the situation in which products that perform the same function compete against one another is referred to as ________ competition.

Question 68

A belief by residents of a country that it is inappropriate or immoral to purchase foreign-made goods and services is known as

A)cultural fit.
B)international protectionism.
C)consumer ethnocentrism.
D)xenophobia.
E)sociocultural bias.

Question 69

In 2003,when France refused to join the U.S.military operation in Iraq,many U.S.consumers refused to eat french fries,so clever marketers renamed them freedom fries.What obstacle were these marketers trying to overcome?

A)sociocultural bias
B)consumer ethnocentrism
C)cultural fit
D)foreign boycott
E)xenophobia

Question 70

The International Monetary Fund was particularly important when it was first created because it helped stabilize the world's economic system following

A)the breakup of the Soviet Union.
B)the creation of the European Union.
C)World War II.
D)the Great Depression.
E)World War I.

Question 71

How many countries were members of the IMF?

A)112
B)86
C)188
D)210
E)59

Question 72

What U.S.corporation was criticized when it created an in-store ad for some European stores that showed a Hindu goddess atop a ham sandwich with the caption,A snack that is sacred?

A)Subway
B)Wendy's
C)Denny's
D)Burger King
E)McDonald's

Question 73

As noted in your text,from a political standpoint,which of the following was hit particularly hard due to the recession that began in late 2007?

A)auto manufacturing
B)the entertainment industry
C)public universities
D)the banking industry
E)the food service industry

Question 74

_______ products are goods and services that perform very similar functions and can be used in place of one another.

Question 75

Which of the following represents how technology is being used in the global marketing environment?

A)the use of translation programs,which allows customers to view websites in their own language
B)corporations that directly invest in foreign countries by opening satellite facilities overseas
C)companies advertising in both domestic and international publications
D)countries joining free trade agreements to facilitate the import and export of products
E)companies outsourcing various functions such as customer service call centers to other countries

Question 76

Changes to the tax incentive element as it pertains to charitable donations are part of which external factor affecting the marketing environment for nonprofit organizations?

A)legal
B)financial
C)economic
D)political
E)sociocultural

Question 77

Which of the following accurately describes the nonprofit competitive environment?

A)Nonprofits do not see a decline in donations during economic recessions.
B)Nonprofit marketers are not impacted by external marketing factors.
C)The competitive environment for nonprofit funding has increased dramatically in recent years.
D)Because they do not operate for a profit,nonprofit organizations do not need to engage in environmental scanning.
E)The competitive environment for nonprofit funding has decreased dramatically in recent years.

Question 78

If a domestic firm makes the mistake of believing that foreign consumers want exactly the same products that are sold in the United States,then that firm is most likely ignoring the importance of

A)consumer ethnocentrism.
B)demographics.
C)environmental scanning.
D)consumer confidence.
E)cultural fit.

Question 79

The fact that Home Depot and Lowe's both cater to the home improvement segment of the marketplace by selling similar products is an example of ________ competition.

Question 80

When a hospital's front lobby displays a digital recognition system listing financial donors of all amounts in order to foster pride and enthusiasm in donors about how their efforts improve the lives of others,it is most likely attempting to overcome which type of external marketing factor?

A)political
B)legal
C)economic
D)sociocultural
E)demographic