Question 1

Marketers live in a world of constant change, and their ability to adapt to the pace of change will dictate the degree to which their marketing strategies are successful. Moreover, the changes can come in any or all of the different parts of the marketing environment.
Which one of the following statements is true?

Accepted Answer

The statement about negative effects of technology includes valid concerns about privacy and intellectual property protection, which can impact the marketing environment. The other options are either inaccurate or irrelevant to the topic.

Question 2

A marketing analyst on your team obtained the following historical economic data from the Federal Reserve Bank of St. Louis for use in your marketing environment analysis:  Based on the data, which of the following statements about these economic forces in your marketing environment is true?

Accepted Answer

The data shows that personal income and disposable income have been increasing steadily from June 2012 to June 2013, indicating that customers likely had more buying power in June 2013 compared to June 2012. There is no evidence in the data to support any of the other statements.

Question 3

The U.S. government has implemented a number of laws over the years to ensure the U.S. economy remains fair, competitive and free of monopolies.
One such law has the following characteristics:
It is also a criminal law, and individuals and businesses that violate it may be prosecuted by the Department of Justice.
It imposes criminal penalties of up to $100 million for a corporation and $1 million for an individual.
It doesn't clearly prohibit mergers or interlocking directorates.
It outlaws "every contract, combination, or conspiracy in restraint of trade."
Which of the following laws is described by the characteristics described above?

Accepted Answer

The characteristics described above match those of the Sherman Antitrust Act of 1890. The Clayton Act, while related to antitrust regulation, has different provisions and penalties. The Hart-Scott-Rodino Act and Robinson-Patman Act address specific aspects of antitrust regulation rather than enforce the general prohibition on contracts, combinations, and conspiracies in restraint of trade. The FTC Act established the Federal Trade Commission to enforce antitrust laws but does not include criminal penalties.

Question 4

The major forces that make up the consumerism movement are consumer organizations and business organizations.

Accepted Answer

The major forces that make up the consumerism movement are primarily consumer organizations, government agencies, and advocacy groups, rather than business organizations. Business organizations are often the target of consumerism efforts rather than the driving force behind them.

Question 5

Your marketing team has started the analysis of your company's marketing environment. Competition has been very intense in recent years in your industry, so you decide to place more emphasis on analyzing the competitive forces in your industry. You group your competitors into the four types that a firm normally faces.
In general, which one of the four types of competitors do you think will be the most formidable for your company?

Accepted Answer

Brand competitors focus on building brand recognition and loyalty, which can make them very formidable competitors in a crowded market. While total budget competitors and generic competitors may offer lower prices, they may not have the same level of brand recognition or customer loyalty. Features-oriented and product competitors may have unique features or products, but without a strong brand, they may struggle to stand out in the market. Therefore, brand competitors are likely to be the most formidable for the company.

Question 6

To achieve their objectives, consumer advocates write letters to companies, lobby government agencies, broadcast public service announcements, and boycott companies whose actions they deem irresponsible.

Accepted Answer

This statement is true. Consumer advocates use a variety of methods to achieve their goals, including writing letters, lobbying government agencies, public service announcements, and boycotting companies.

Question 7

Single people have quite different spending patterns than couples and families with children. They spend more heavily on convenience foods, restaurants, travel, entertainment, and recreation.

Accepted Answer

Single people have more disposable income and fewer responsibilities than couples and families with children, allowing them to spend more on leisure activities and convenience foods.

Question 8

Based on data from the Federal Reserve Bank of St. Louis, the Civilian Labor Force Participation Rates for men and women in the United States are as follows:  With respect to this data, which one of the following statements is true?

Accepted Answer

The labor participation rate, while not directly related to marketing, is an economic indicator that reflects the percentage of the population that is either employed or actively seeking employment. This has direct implications for the overall economic conditions and consumer behavior, which in turn can impact the marketing environment. None of the other options accurately reflect the data provided.

Question 9

The following are some predictions from Smithsonian Magazine regarding the future sociocultural dynamics in the world:
The United States population will expand by 100 million.
The portion of the population that is currently at least 65 years old is expected to increase from 13 percent to 20 percent by 2050 in America.
By 2050, the working age group of people between 15 and 64 years old is expected to grow by 42 percent in the United States, but decline by 10 percent in China, 25 percent in Europe, 30 percent in South Korea and 40 percent in Japan.
With respect to these predictions, which one of the following statements is true?

Accepted Answer

All of the predictions mentioned in the passage refer to population demographic characteristics. Option B is incorrect because the passage states that the working age population in the United States is expected to grow, whereas it is expected to decline in Japan. Option C is incorrect because the passage does not provide information about the current average age of these populations. Option D is also incorrect because there is no information in the passage to suggest that these predictions will result in less of a strain on environmental resources. Option E is also incorrect because the passage does not provide any information about the expected average age of the population in the United States in 2050 compared to today.

Question 10

Your company is planning to increase its political influencing activities in the next fiscal year in an attempt to shape upcoming, key legislation in your favor.
Which of the following steps should you consider to accomplish this goal?

Accepted Answer

Forming your own Political Action Committee (PAC) would be the best choice as it allows your company to directly contribute to political campaigns and support candidates who are favorable to your company's interests. Hiring a public relations firm, decreasing contributions to key legislators, closing your legislative affairs office, and canceling membership in the U.S. Chamber of Commerce would not necessarily directly contribute to shaping key legislation in your favor.

Question 11

As input for a presentation that you are jointly authoring, one of your marketing analysts submitted the following summary of the characteristics of the four different types of market structures companies compete in:
 With respect to the classifications of number of competitors and barriers to entry, which one of the following statements is correct?

Accepted Answer

The answer of As input for a presentation that you...

Question 12

The Center for Responsive Politics publishes data about dollars spent on lobbying efforts by major companies, industries and other entities seeking to influence Congressional legislation and the political process. The table below lists the industries that spent the most money on lobbying activities in 2011 and 2013:  According to this data, which one of the following statements is true?

Accepted Answer

The answer of The Center for Responsive Politics publishes data...

Question 13

The Federal Reserve Bank just issued its economic report on the U.S. economy for the quarter just ended. The following are some of the key points mentioned in the report:
"Economic activity has continued to grow at a moderate pace since the last report."
"Manufacturers report that business activity has picked up considerably in recent weeks."
"Tourism activity has strengthened, no longer held back by harsh weather."
"General merchandise retailers report that sales rebounded strongly in April and early May."
"Retail contacts generally say that inventories are at satisfactory levels, that prices are mostly steady, and that the degree of discounting is little changed from a year ago."
Based on these economic forces, you can conclude

Accepted Answer

The report states that economic activity has continued to grow at a moderate pace, manufacturers report increased business activity, tourism has strengthened, and retailers report rebounding sales with steady prices and little change in discounting. These are all indicators of a prosperous economy with increasing consumers' buying power.

Question 14

Your company makes highly sophisticated components for military equipment. The U.S. Department of Defense is your largest customer. In recent years, you have expanded your customer base to include the militaries of all the major countries in the world.
The following headlines appeared in the Sunday NYC Times newspaper recently:
"The Federal Reserve Board Chairman Sees Economic Growth Accelerating in the Third Quarter."
"Congressional Republicans and Democrats Fail to Reach Compromise on the New Immigration Bill."
"The Average Teen Spends Two Hours Per Day on Social Media Sites."
"State Department Considers Imposing New Sanctions on Exports of Sensitive Military Technology."
"Unemployment Rate Falls to 6.2%."
Which one of the following statements is true regarding these headlines?

Accepted Answer

The headline "State Department Considers Imposing New Sanctions on Exports of Sensitive Military Technology" highlights a potential legal and regulatory force that could impact the company's marketing environment. This is particularly relevant for a company that sells military technology components to government customers. The other headlines do not directly relate to the company's marketing environment and should not be categorized as economic, political, sociocultural, or geopolitical forces.

Question 15

The major source of cultural values is the family.

Accepted Answer

The family is considered a primary agent of socialization and the culture of a family plays a significant role in shaping an individual's values, beliefs, and behavior patterns. Therefore, the family is a major source of cultural values.

Question 16

At the beginning of each of your marketing strategy team meetings, each team member gives a presentation on the current status of a key force in your company's marketing environment.  The following brief presentations were given by your team members:
John's presentation focused on the competitive forces in your industry.
Karen's presentation focused on the internal dynamics in your company.
Brandon's presentation focused on the political events emanating from Washington D.C.
Susan's presentation focused on what is driving the technology changes happening in the country.
Beverly's presentation focused on the most recent economic projections issued by the Federal Reserve Bank of New York.
After reviewing the presentations, you can conclude that

Accepted Answer

John spoke about competitive forces, Karen spoke about internal dynamics, Brandon spoke about political events, Susan spoke about technology changes, and Beverly spoke about economic projections. Therefore, option D is correct, which states that Beverly spoke about economic forces and Susan spoke about technological forces in the marketing environment.

Question 17

Define and describe the importance of social responsibility in marketing.

Accepted Answer

The answer of Define and describe the importance of social...

Question 18

Although the monopoly is one of the four major market structures that theoretically exists in a free market capitalist system, the reality is there are very few true monopolies in the economy. This is the result of many federal laws and regulations that have been passed to limit the creation and power of monopolies.
Which one of the following federal laws was passed to prevent the creation of monopolies in the economy?

Accepted Answer

The Sherman Act of 1890 was passed to prevent the creation of monopolies in the economy by prohibiting contracts, combinations, or conspiracies that restrain trade or commerce. It was the first federal law to limit monopolistic behavior in the United States.

Question 19

Changes in cultural values have little effect on people's needs for products.

Accepted Answer

Changes in cultural values can have a significant impact on people's needs for products as their preferences and attitudes towards certain products may change. For example, an increase in environmental awareness may lead to a greater demand for environmentally-friendly products, while shifts towards a healthier lifestyle may lead to increased demand for healthier food options.

Question 20

Your company is accepting proposals from a variety of consulting firms to assist in determining how the rapid changes in technology will impact your firm's future operations and profitability.
Which one of the following consulting firm proposals should you accept?

Accepted Answer

Firm D's proposal to complete a technology assessment is the most relevant and specific to the company's needs. A technology assessment will provide insights into the impact of technology on operations and profitability. The other proposals, such as a SWOT analysis or an IT change management process, may not be as directly related to the company's technology needs. Therefore, accepting Firm D's proposal is the best choice.

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

A marketing analyst on your team obtained the following historical economic data from the Federal Reserve Bank of St. Louis for use in your marketing environment analysis: Based on the data, which of the following statements about these economic forces in your marketing environment is true?

The major forces that make up the consumerism movement are consumer organizations and business organizations.

To achieve their objectives, consumer advocates write letters to companies, lobby government agencies, broadcast public service announcements, and boycott companies whose actions they deem irresponsible.

Single people have quite different spending patterns than couples and families with children. They spend more heavily on convenience foods, restaurants, travel, entertainment, and recreation.

Based on data from the Federal Reserve Bank of St. Louis, the Civilian Labor Force Participation Rates for men and women in the United States are as follows: With respect to this data, which one of the following statements is true?

Your company is planning to increase its political influencing activities in the next fiscal year in an attempt to shape upcoming, key legislation in your favor. Which of the following steps should you consider to accomplish this goal?

The major source of cultural values is the family.

Define and describe the importance of social responsibility in marketing.

Changes in cultural values have little effect on people's needs for products.

Your company is accepting proposals from a variety of consulting firms to assist in determining how the rapid changes in technology will impact your firm's future operations and profitability. Which one of the following consulting firm proposals should you accept?