Question 1

Governments and industry regulators have minimal impacts on marketing decisions.

Accepted Answer

Governments and industry regulators significantly influence marketing decisions through laws, regulations, and guidelines that companies must follow to ensure compliance and ethical practices.

Question 2

A monopoly is a market situation in which a few large firms control the market.

Accepted Answer

A monopoly is a market situation where a single firm controls the entire market, not a few large firms.

Question 3

Indirect competition is competition from substitute products that offer customers the same benefit.

Accepted Answer

Indirect competition occurs when different products or services fulfill the same need or desire for the consumer, thus acting as substitutes.

Question 4

Market leader refers to the company with the highest level of recognition in the mind of the target market.

Accepted Answer

Market leader refers to the company with the largest market share or highest sales in a particular industry, not necessarily the highest recognition.

Question 5

A small airline like Porter Air that focuses on providing in-flight experiences not offered by WestJet and Air Canada could be called a market nicher.

Accepted Answer

A market nicher is a company that targets a specific segment of the market by offering unique products or services that larger competitors do not provide.

Question 6

In Canada, the Competition Act is the entity that regulates the legal environment for marketing and other business practices in Canada.

Accepted Answer

The Competition Act is a law, not an entity. It is enforced by the Competition Bureau, which regulates the legal environment for marketing and business practices in Canada.

Question 7

Canadians are protected by multiple privacy laws that place limits on collection, use, and disclosure of personal info.

Accepted Answer

Canada has several privacy laws, such as the Personal Information Protection and Electronic Documents Act (PIPEDA) and provincial laws, which regulate how personal information is collected, used, and disclosed.

Question 8

The total value of goods and services produced in a country on an annual basis is called the GDP or Gross Domestic Product.

Accepted Answer

GDP, or Gross Domestic Product, measures the total value of all goods and services produced within a country's borders in a specific time period, typically annually.

Question 9

If inflation rises, a $50,000 income in 2006 will be worth more than it would have been in 2005.

Accepted Answer

If inflation rises, the purchasing power of money decreases, meaning a $50,000 income in 2006 would be worth less than in 2005.

Question 10

A lower bank rate can help boost the economy by making it less expensive for businesses and individuals to borrow money.

Accepted Answer

A lower bank rate reduces the cost of borrowing, encouraging spending and investment, which can stimulate economic growth.

Question 11

As Canadians work more and longer hours, businesses are adjusting by offering convenience services.

Accepted Answer

Businesses often adapt to changes in workforce behavior, such as longer working hours, by providing convenience services to meet the needs of busy employees.

Question 12

A beverage company that donates 1% of their sales to charities while producing profitable, environmentally sustainable drink bottles is focused on the "triple bottom line."

Accepted Answer

The "triple bottom line" refers to a business approach that includes social, environmental, and financial performance, which aligns with the company's focus on charity, sustainability, and profitability.

Question 13

Consumers doing research online is evidence that education and technology are producing more informed consumers.

Accepted Answer

The ability to research online indicates that consumers have access to vast amounts of information, which can lead to more informed decision-making, a result of advancements in technology and education.

Question 14

More Canadians than ever before are moving to rural areas.

Accepted Answer

The answer of More Canadians than ever before are moving...

Question 15

The people born in the mini-boom that occurred in the late 1980s are now more frequently referred to as Generation Y, or millennials.

Accepted Answer

The mini-boom in the late 1980s is part of the millennial generation, which includes those born from the early 1980s to the mid-1990s to early 2000s.

Question 16

Essentially, families are getting larger and more traditional in structure.

Accepted Answer

Recent trends indicate that families are becoming smaller and more diverse in structure, with an increase in single-parent households, cohabiting couples, and other non-traditional family forms.

Question 17

An individual born in 1968 is part of the "baby bust"generation.

Accepted Answer

The "baby bust" generation refers to individuals born between 1965 and 1979, so an individual born in 1968 would be part of this generation.

Question 18

An increasing number of Canadian children are born and raised outside of marriage.

Accepted Answer

Statistics and studies have shown a trend in Canada where more children are being born to unmarried parents, reflecting changing societal norms and family structures.

Question 19

The sandwich generation is so named because their fast-paced lifestyles have them consuming greater quantities of fast-food products, such as submarine sandwiches and burgers.

Accepted Answer

The sandwich generation refers to middle-aged adults who are responsible for caring for both their aging parents and their own children, not because of their consumption of fast food.

Question 20

The economic prosperity of the early part of the millennium has increased the spending power of the average Canadian consumer.

Accepted Answer

The economic prosperity of the early 2000s does not necessarily correlate with increased spending power for Canadians today, as economic conditions have changed over time.

Quiz 2: The External Marketing Environment