Question 1

The persistent increase in the prices of goods and services is called:

Accepted Answer

Inflation is the term used to describe the persistent increase in the prices of goods and services over time.

Question 2

Which of the following trends have increased the difficulty that marketers face when they try to grab the attention of consumers?

Accepted Answer

The attention of multitasking consumers is divided, making it harder for marketers to capture their full attention.

Question 3

Suppose C $1.00 was worth US $0.809.After nine months, the Canadian dollar increased to $1.50.This is an example of:

Accepted Answer

This scenario describes a change in the exchange rate between the Canadian dollar and the US dollar, which is an example of foreign currency fluctuation.

Question 4

The changes in the value of a country's currency relative to the currency of another country that can influence consumer spending is called:

Accepted Answer

Foreign currency fluctuation refers to the changes in the exchange rate between two currencies, which can affect the purchasing power of consumers when buying foreign goods and services.

Question 5

Bill is part of a program that collects biodegradable waste or compostable materials that would otherwise be included in kitchen and yard waste.This material is collected by the municipality and used to make compost for gardening.This is called a program.

Accepted Answer

The program described is a "green bin" program, where biodegradable waste is collected for composting.

Question 6

Mekong Airlines uses special technology to reduce the number of lost bags and make it easier to reroute bags if passengers change their flight plans.Which of the following technologies does it use to track passenger bags?

Accepted Answer

RFID (Radio Frequency Identification) is commonly used by airlines to track passenger bags, as it allows for efficient tracking and rerouting of luggage.

Question 7

Which of the following happens during a recession?

Accepted Answer

During a recession, economic activity slows down, leading to higher unemployment as businesses cut back on production and lay off workers.

Question 8

Which of the following is used by retail firms to track an item from the moment it is manufactured, through the distribution system, to the retail store, and into the hands of the final consumer?

Accepted Answer

RFID (Radio Frequency Identification) is used by retail firms to track items throughout the supply chain, from manufacturing to the consumer.

Question 9

Ecolight has developed a compact fluorescent light bulb that has super long life and saves $20 in energy costs over its five-year lifetime.It uses less power and has a longer rated life (8 to 15 times) than a normal bulb.This is an example of:

Accepted Answer

This is an example of green marketing, which involves promoting products based on their environmental benefits, such as energy efficiency and long life in this case.

Question 10

In Germany in 1923, prices doubled every two days and workers were paid twice a day so they could buy food and goods before prices rose again.This is an example of:

Accepted Answer

This is an example of hyperinflation, a form of extreme inflation where prices increase rapidly and uncontrollably, as seen in Germany in 1923.

Question 11

A hotel introduces eco-rooms that have energy-efficient mini-bars, organic bed linen, and napkins made of recycled papers.The rooms are fitted with CFLs or LEDs to conserve energy.This is an example of:

Accepted Answer

This is an example of green marketing, where the hotel is promoting its eco-friendly rooms and practices to attract environmentally conscious customers.

Question 12

Consumers are encouraged to recycle their food and yard waste to make compost for gardening in programs.

Accepted Answer

The term "green bin" refers to a program where consumers recycle organic waste, such as food and yard waste, to create compost for gardening.

Question 13

The pricing that is intended to drive competitors out of the market or keep competitors from entering the market by fixing very low prices is called:

Accepted Answer

Predatory pricing is a pricing strategy in which a company sets very low prices for its products or services with the intention of driving competitors out of the market or keeping potential competitors from entering the market. This is done by making it difficult for other companies to compete on price and ultimately forcing them out of business. Predatory pricing can be seen as anti-competitive behavior and is illegal in some countries.

Question 14

A fast-food joint decided to raise the price of its cheeseburger from $1 to $2.It also removed accompaniments that were served with the cheeseburger.This was due to increasing commodity prices.This is an example of:

Accepted Answer

This is an example of inflation, where the price of goods and services rises, leading to a decrease in purchasing power. The fast-food joint raised prices due to increasing commodity prices, which is a typical response to inflation.

Question 15

A situation in which sellers collude to set prices in response to bids or quotations for products is called:

Accepted Answer

Bid rigging is an illegal practice where sellers collude to set prices or determine the winner of a bidding process, undermining fair competition.

Question 16

The two fastest-growing ethnic groups who have migrated to Canada are the:

Accepted Answer

According to recent census data, between 2011 and 2016, the Chinese and South Asian populations saw the biggest growth in Canada.

Question 17

Which of the following holds true for the impact of government regulations on marketers?

Accepted Answer

Government regulations often require businesses to adhere to certain standards and practices, which can increase the cost of compliance for marketers.

Question 18

A period of economic downturn when the economic growth of a country is negative for at least a couple of consecutive quarters is called:

Accepted Answer

A recession is a period of economic decline characterized by a decrease in gross domestic product (GDP) for at least two consecutive quarters. Deflation refers to a general decrease in prices of goods and services, while inflation refers to a general increase in prices. Foreign currency fluctuation refers to changes in the exchange rate between two currencies. Shoe leather cost refers to the cost of increased transactions due to inflation.

Question 19

The fact that many of today's commercials for children's gear now include Dad interacting with the kids and being involved in purchase decisions reflects:

Accepted Answer

Marketers are recognizing and adapting to the evolving roles of fathers in family dynamics, reflecting changing gender roles in society.

Question 20

The strategic effort made by firms to supply customers with environmentally friendly merchandise is called:

Accepted Answer

Green marketing refers to the practice of developing and promoting products based on their environmental benefits.

Quiz 3: Understanding the Marketplace Consumer Behaviour