Deck 3: The Marketing Environment, Social Responsibility, and Ethics

Question 1

Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in

A)environmental analysis.
B)competitive forces.
C)environmental scanning.
D)procompetitive legislation.
E)self-regulatory forces.

Answer 1

C

Question 2

Marketers who attempt to influence and change the various environmental forces have a(n) ____ response to these forces.

A)reactive
B)inactive
C)variable
D)positive
E)proactive

Answer 2

E

Question 3

What roles do the Better Business Bureau and the National Advertising Review Board play in self-regulation of business?

Answer 3

Answer not provided.

Question 4

Three primary methods of collecting information for environmental scanning are

A)marketing research, company records, and advance orders.
B)secondary sources, company records, and observation.
C)executive knowledge, media, and marketing research.
D)observation, secondary sources, and marketing research.
E)company database, executive knowledge, and research.

Question 5

To monitor changes in the marketing environment effectively, marketers must engage in

A)environmental scanning and analysis.
B)economic scanning
C)self-regulatory analysis
D)marketing research analysis
E)information collecting

Question 6

Dell Computer collects information about a wide variety of competitive, economic, political, legal and regulatory, technological, and sociocultural forces that affect its marketing activities. This process is called

A)environmental scanning.
B)survey of environment.
C)marketing.
D)environmental analysis.
E)marketing information processing.

Question 7

According to the textbook, a manager's duties in an environmental analysis include

A)checking information for accuracy, resolving inconsistencies, and assigning significance to the findings.
B)observation and assessment.
C)conducting research, assessment, and reporting.
D)observation, market research, and fact finding.
E)checking the company database, conducting research, and reporting.

Question 8

Describe several ways in which federal agencies influence marketing activities.

Question 9

When PepsiCo takes the information collected through research and attempts to assess and interpret what it means for its soft-drink marketing efforts, PepsiCo is engaged in environmental

A)scanning.
B)forces.
C)management.
D)manipulation.
E)analysis.

Question 10

Explain the differences between the competitive structures of a monopoly and an oligopoly.

Question 11

Define and describe the importance of social responsibility in marketing.

Question 12

List and describe important ethical issues in marketing.

Question 13

What are some ways to determine if an activity is ethical or socially responsible?

Question 14

Toyota has developed aluminum car bodies that are 100 percent recyclable and light enough to help conserve fuel. What kind of response is this to environmental forces?

A)Proactive
B)Competitive
C)Reactive
D)Inactive
E)Controllable

Question 15

Nabisco learned that health-conscious consumers preferred lower fat snack and lower-carbohydrate foods. At the same time, the firm saw sales of such products slumping and was careful not to launch any new varieties of these products for a while. Which of the following best describes Nabisco's action?

A)Environmental scanning
B)Environmental marketing
C)Demarketing
D)Segmentation
E)Environmental analysis

Question 16

What are the major forces that are referred to as sociocultural forces?

Question 17

Given a new brand of barbecue sauce for which to develop a marketing strategy, describe how you would conduct environmental scanning and analysis.

Question 18

Provide an overview of important social responsibility issues in marketing, and indicate their impact on marketing decisions.

Question 19

Explain the difference between procompetitive legislation and consumer protection laws.

Question 20

After Home Depot gathers information related to its marketing environment, it attempts to define current environmental changes and predict future changes. This determines possible opportunities and threats facing the company. It illustrates the process that is called

A)environmental scanning.
B)survey of environment.
C)marketing.
D)environmental analysis.
E)marketing information processing.

Question 21

The four major competitive structures are

A)monopolies, oligopolies, oligopolistic monopolies, and pure competition.
B)pure competition, heavy competition, moderate competition, and light competition.
C)brand, product, total budget, and generic.
D)oligopolies, monopolies, monopolistic competition, and pure competition.
E)monopolies, limited competition, oligopolistic competition, and pure competition.

Question 22

____ competitors are those that compete in the same product class, but their products have different features, benefits, and prices.

A)Total budget
B)Generic
C)Brand
D)Product
E)Price

Question 23

Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Year's Eve party crowd instead of Korbel champagne. As a result of this action, Korbel and Hawaiian Punch can be viewed as ____ competitors.

A)generic
B)product
C)total budget
D)oligopolistic
E)pure

Question 24

____ competitors provide very different products that satisfy the same basic customer need.

A)Brand
B)Generic
C)Total budget
D)Product
E)Marketing

Question 25

____ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other.

A)Oligopolic
B)Total budget
C)Generic
D)Product
E)Brand

Question 26

Which of the following firms would be most likely to have a monopoly for its competitive environment?

A)TimeWarner Cable TV
B)Mitchell Trucking
C)Continental Airlines
D)Rogers Plumbing
E)Chemlawn Lawn Care

Question 27

When a firm has many potential competitors and tries to develop a marketing strategy to differentiate its products from the competitors' products, a(n) ____ structure exists in the competitive environment.

A)oligopoly
B)monopoly
C)pure competition
D)oligopolistic competition
E)monopolistic competition

Question 28

Companies that compete for the same limited financial resources of the same customers are known as ____ competitors.

A)oligopolic
B)total budget
C)generic
D)product
E)brand

Question 29

Although Matt's company engages in environmental scanning and analysis, he feels more comfortable changing his policies and strategies to adapt to environmental forces rather than trying to influence these forces. Matt has a(n) ____ approach to marketing environmental forces.

A)inactive
B)reactive
C)proactive
D)negative
E)variable

Question 30

What type of competitive structure exists when a firm produces a product that has no close substitutes?

A)Monopoly
B)Oligopoly
C)Monopolistic competition
D)Pure competition
E)Mixed competition

Question 31

In today's marketing environment, competitors can take on many forms. For example, Diet Coke can be seen as a competitor to Wrigley's Double Mint chewing gum. In this circumstance, these two products are described as ____ competitors.

A)generic
B)product
C)total budget
D)monopolistic
E)pure

Question 32

The American automobile industry used to be dominated by "The Big Three," including General Motors, Ford, and Chrysler. However, as many more foreign competitors began influencing this market, the American companies had to modify and differentiate their products. The automobile industry moved from a(n) ____ structure to a(n) ____ structure.

A)monopolistic; oligopolistic
B)oligopolistic; pure competition
C)oligopolistic; monopolistic competition
D)monopolistic competition; pure competition
E)monopolistic; monopolistic competition

Question 33

Companies that market products with similar features, benefits, and prices to the same customer group are known as ____ competitors.

A)generic
B)product
C)brand
D)total budget
E)monopolistic

Question 34

Which of the following would represent a brand competitor for Ford's Escape Hybrid sport utility vehicle?

A)Honda Pilot
B)Toyota's Highlander Hybrid
C)Honda Civic Hybrid
D)Taxi ride
E)Chevrolet Tahoe rented from Avis

Question 35

Which of the following is not at the generic competitor level for Ford's Expedition sport utility vehicle?

A)Saturn SKY
B)Enterprise car rental
C)Harley Davidson motorcycle
D)Schwinn mountain bike
E)Taxi cab ride

Question 36

The D-Lite Corporation produces a unique type of light bulb that is used in refrigerator manufacturing. D-Lite is the only maker of this light bulb, and there are no close substitutes for it. In this case, the D-Lite Corporation would be

A)an oligopoly.
B)a monopoly.
C)involved in monopolistic competition.
D)involved in perfect competition.
E)involved in a perfect oligopoly.

Question 37

Marketers who view political forces as being beyond their control are taking a(n) ____ response toward these forces.

A)reactive
B)aggressive
C)proactive
D)competitive
E)liberal

Question 38

When marketers define their target market, they simultaneously establish a set of

A)technologies.
B)monopolies.
C)competitors.
D)government regulations.
E)sociocultural forces.

Question 39

Marketers primarily focus their environmental analysis on ____ competitors.

A)brand
B)product
C)total budget
D)generic
E)monopolistic

Question 40

The best approach for a company to take when monitoring its competitors is

A)watching for increases and decreases in competitors' prices and match them.
B)analyzing all information that is readily available about competitors.
C)sending employees to competitors' offices and factories to observe their actions.
D)developing a system for gathering ongoing information about competitors.
E)reading important business publications such as The Wall Street Journal.

Question 41

Which of the following statements is true?

A)Political officials can not influence how much a government agency purchases and from whom.
B)A recent U.S. Supreme Court decision nullified federal laws that restricted political campaign fund contributions for corporate labor unions.
C)Company sponsored political advertising can only focus on topics and not on candidates.
D)Political officials can not accept direct corporate campaign contributions.
E)Companies can not participate in the political process through lobbying.

Question 42

Consumers begin to become more price and value conscious during periods of

A)inflation.
B)prosperity.
C)recession.
D)depression.
E)recovery.

Question 43

Textile companies historically face issues concerning the use of child labor in foreign countries and the various regulations created concerning this labor. The type of marketing environment forces executives for these companies are most likely to try to influence are ____ forces.

A)economic
B)competitive
C)political
D)environmental
E)sociocultural

Question 44

What is the most important factor in distinguishing disposable income from income?

A)Taxes
B)Housing
C)Employment levels
D)Consumer spending
E)Saving

Question 45

The accumulation of past income, natural resources, and financial resources is known as

A)income.
B)collected income.
C)credit.
D)wealth.
E)savings.

Question 46

When using credit to make purchases, consumers are

A)decreasing current buying power and increasing future buying power.
B)increasing their present discretionary income to extend purchasing power.
C)putting themselves at significant risk of financial disaster.
D)forgoing the accumulation of wealth to increase current income.
E)increasing current buying power at the expense of future buying power.

Question 47

The amount of money received through wages, rents, investments, pensions, and subsidies is called

A)income.
B)wealth.
C)discretionary income.
D)prosperity.
E)credit.

Question 48

The strength of a person's "buying power" depends on economic conditions and

A)level of income.
B)size of resources that can be traded in an exchange.
C)how much a consumer will buy.
D)a consumer's spending pattern.
E)levels of median wealth.

Question 49

If Toby Roberts has an income of $30,000, pays $6,000 in rent, $1,200 in utilities, and $5,000 in taxes per year, his disposable income is

A)$7,800.
B)$14,000.
C)$9,000.
D)$25,000.
E)$20,000.

Question 50

Which category of income are marketers most interested in?

A)Wealth
B)Disposable income
C)Discretionary income
D)Total income
E)Extra income

Question 51

Assuming that inflation is low, high buying power characterizes the ____ stage of the business cycle.

A)prosperity
B)depression
C)recovery
D)succession
E)recession

Question 52

Heidi decided to spend some of her saved money on tickets to a Cold Play concert coming to town, and now she is planning on buying a new outfit for the concert. What type of resources is Heidi making decisions about?

A)Disposable income
B)Wealth
C)Buying power
D)Discretionary income
E)Savings income

Question 53

Total buying power declines during periods of economic

A)recovery.
B)prosperity.
C)recession.
D)uncertainty.
E)expansion.

Question 54

Consumer confidence and willingness to spend begins to increase during periods of ____, and marketers must remain very flexible to make the necessary adjustments.

A)depression
B)prosperity
C)recovery
D)growth
E)recession

Question 55

Texas rice farmers wish to get their product into the Japanese market but are hindered by a complex maze of regulations imposed by the Japanese government. The farmers are most likely to attempt to influence which aspect of the marketing environment?

A)Sociocultural
B)Technological
C)Competitive
D)Economic
E)Political

Question 56

In a period of economic recovery, the best marketing strategy for FedEx would be characterized by which of the following features?

A)Flexibility
B)Aggressiveness
C)Austerity
D)Retrenchment
E)Boldness

Question 57

During which stage of the business cycle is unemployment low and total income relatively high?

A)Repression
B)Prosperity
C)Recovery
D)Recession
E)Depression

Question 58

Discretionary income is associated with all of the following except

A)automobiles.
B)education.
C)pets.
D)furniture.
E)food.

Question 59

Why are marketers interested in consumers' levels of disposable income?

A)It accurately predicts future buying power.
B)It increases current buying power.
C)It is what is left after taxes and savings to buy luxuries with.
D)It is a ready source of buying power.
E)It is essential for forecasting future business trends.

Question 60

Which of the following attributes of a Toyota Scion would be most appropriate to emphasize in television commercials during an economic recession?

A)Stereo system
B)Prestige
C)Durability
D)Leg room
E)Sporty design

Question 61

The 1990 Nutritional Labeling and Education Act directly prohibits

A)exaggerated claims made by health and fitness products.
B)putting the words "cholesterol-free" on any food package.
C)putting nutritional information on most food products.
D)exaggerated health claims on food packages.
E)the use of any health claim on food packaging.

Question 62

Which of the following is an advantage that self-regulatory agencies such as the BBB and the NARB have over governmental laws and regulatory agencies?

A)Firms must strictly abide by the rulings of self-regulatory agencies.
B)Establishment and implementation are usually less expensive.
C)They have better tools to enforce their rulings.
D)Guidelines are often stricter and create greater compliance from firms.
E)Money is very rarely an issue in enforcing decisions of self-regulatory agencies.

Question 63

The Children's Online Privacy Protection Act prohibits websites and Internet providers from

A)selling products to children under the age of 18
B)seeking personal information from children under the age of 13
C)selling products to children under the age of 12
D)doing research about the buying habits of children under 15
E)selling products to children under the age of 15

Question 64

Which of the following agencies regulates marketing activities the most?

A)Environmental Protection Agency
B)Food and Drug Administration
C)Federal Trade Commission
D)Better Business Bureau
E)National Advertising Review Board

Question 65

Which of the following actions is illegal?

A)Political officials influencing how much a government agency purchases and from whom.
B)Corporate contributions to candidates.
C)Corporate contributions to elected officials.
D)Political officials helping businesses secure foreign markets.
E)Paying political officials not to enforce a particular law.

Question 66

Procompetitive laws are those designed to

A)preserve competition.
B)protect the consumer.
C)ensure product safety.
D)reduce competition.
E)limit business lobbying of government officials.

Question 67

Which of the following statements about self-regulatory programs is false?

A)Self-regulatory programs are usually less expensive than governmental regulatory programs.
B)Self-regulatory programs' guidelines generally are more realistic and operational.
C)Nongovernmental self-regulatory programs have neither the tools nor the authority to enforce guidelines.
D)Self-regulatory guidelines generally are stricter than governmental regulatory programs.
E)When a trade association sets up industry guidelines, some firms that are in the industry but not in the trade association do not follow the guidelines.

Question 68

If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating the

A)Wheeler-Lea Act.
B)Clayton Act.
C)Robinson-Patman Act.
D)Sherman Antitrust Act.
E)Celler-Kefauver Act.

Question 69

In its advertisements for Bud Light beer, Anheuser-Busch has decided to include a statement saying "Know when to say when." This is an example of which one of the following types of regulatory forces affecting marketing efforts?

A)Federal regulation
B)State regulation
C)City regulation
D)Self-regulation
E)Social regulation

Question 70

When a firm continues to violate what the Better Business Bureau believes to be good business practices, what is one of the main actions the bureau will take?

A)Lead a consumer boycott of the business.
B)Sue the chief executive of the business.
C)Impose fines on the owners/managers of the business.
D)Support legal ordinances against the business.
E)Warn consumers of the unfair practices.

Question 71

Jared Bledsoe hires a local landscape firm to plant trees and shrubs in his yard. The firm plants mostly dead plants but refuses to return Jared's money or replace the dead items. Jared's best course of action would be to contact the

A)police.
B)Federal Trade Commission.
C)Sherman Commission.
D)Better Business Bureau.
E)federal district court.

Question 72

Which of the following industries is most commonly regulated by state regulatory agencies?

A)Automobile manufacturers
B)Cigarette producers
C)Clothing manufacturers
D)Television networks
E)Utility companies

Question 73

Price discrimination is prohibited by the ____ Act.

A)Sherman
B)Wheeler-Lee
C)Robinson-Patman
D)Celler-Kefauver
E)Consumer Goods Pricing

Question 74

The Pharmaceutical Research and Manufacturers of America sets guidelines for its member firms to follow regarding the use of unethical practices. Thus, it is engaging in

A)legislation.
B)lobbying.
C)self-regulation.
D)environmental scanning.
E)trade restraint.

Question 75

International Office Supplies Wholesaler charges different prices to its various customers without any legal justification. This company is in violation of the

A)Sherman Antitrust Act.
B)Wheeler-Lea Act.
C)Lanham Act.
D)Federal Trade Commission Act.
E)Robinson-Patman Act.

Question 76

Which of the following agencies would most likely have jurisdiction over the problem with lead in the paint of children's toys?

A)Consumer Product Safety Commission
B)Children's Online Protection Act
C)Food and Drug Administration
D)Environmental Protection Agency
E)National Advertising Review Board

Question 77

In its advertisements, Johnson's Hair Care Products claims that its KLTR-14 gel will restore the hair of bald men. Members of the NARB believe the claim is unsupportable. What action can the NARB take?

A)Force Johnson's to stop running the advertisement.
B)File a complaint with the Federal Trade Commission.
C)Fine Johnson's for each time the ad appears.
D)Sue Johnson's Hair Care Products in federal court.
E)Sue Johnson's Hair Care Products in state court.

Question 78

Which of the following are the most frequently sentenced organizational crimes?

A)False advertising and price discrimination
B)Price discrimination and fraud
C)Fraud and antitrust violations
D)Price fixing and antitrust violations
E)Fraud and price fixing

Question 79

Consumer protection legislation deals with all of the following legal concerns except

A)consumer safety.
B)sale of hazardous products.
C)monopolistic practices.
D)information disclosure.
E)health claims on food packages.

Question 80

The Better Business Bureau is probably the best-known

A)nongovernmental regulatory group.
B)state-operated enforcement agency.
C)national evaluator of advertisements.
D)federal regulatory group.
E)self-regulatory unit operating at the national level.