Question 1

An individual's after-tax income is called his or her discretionary income, which is used for spending and/or saving.

Accepted Answer

An individual's after-tax income is referred to as disposable income, which is the amount available for spending and saving after income taxes have been accounted for. Discretionary income is the amount of an individual's income that is left for spending, investing, or saving after taxes and personal necessities (like food and shelter) have been paid.

Question 2

A factor that affects willingness to spend is general economic conditions.

Accepted Answer

General economic conditions can influence consumer confidence, job security, and disposable income, all of which can impact a person's willingness to spend.

Question 3

Disposable income is used to pay taxes, spend, and save.

Accepted Answer

Disposable income is the amount of money that households have available for spending and saving after income taxes have been accounted for. Taxes are deducted before disposable income is calculated.

Question 4

Brand competitors market products with similar features, benefits, and prices to the same customers.

Accepted Answer

Brand competitors typically sell products that are very similar to one another, making them direct competitors for the same customer base.

Question 5

The number of firms that control the supply of a product may affect the strength of competition.

Accepted Answer

The fewer firms there are controlling the supply of a product, the less competition there is, as each firm has more market power and can set higher prices. On the other hand, the more firms there are controlling the supply, the more competition there is, as each firm has less market power and must compete with others on price and quality.

Question 6

If political officials have positive feelings toward particular firms or industries, they are less likely to create or enforce laws and regulations that are unfavorable for business organizations.

Accepted Answer

This is because political officials are influenced by their personal biases and preferences, which may impact their decision-making regarding laws and regulations that affect businesses. If they have positive feelings towards a particular firm or industry, they may be more lenient towards them and avoid creating or enforcing unfavorable laws and regulations. However, this can lead to unequal treatment of different businesses and undermine the principles of fair competition.

Question 7

Credit increases future buying power.

Accepted Answer

The answer of Credit increases future buying power....

Question 8

Political forces are beyond the control of marketers, and so they can only react to them.

Accepted Answer

The answer of Political forces are beyond the control of...

Question 9

An oligopoly exists when a firm offers a product that has no close substitutes, making the firm the sole source of supply.

Accepted Answer

An oligopoly exists when only a few firms dominate the market offering similar or differentiated products. The firms in an oligopoly have some control over pricing and the actions of one firm can have significant impact on the other firms in the industry. However, there are still substitute products available to consumers, even if they are not close substitutes.

Question 10

The strength of one's buying power depends partially on the state of the economy.

Accepted Answer

In a strong economy, consumers' buying power tends to be stronger as there are more job opportunities, higher wages, and lower inflation. In a weak economy, the opposite is true, resulting in decreased buying power.

Question 11

Decreases in taxes lead to decreases in disposable income.

Accepted Answer

Decreases in taxes lead to increases in disposable income.

Question 12

A monopoly exists when a firm with many potential competitors attempts to develop a marketing strategy to differentiate its products.

Accepted Answer

A monopoly exists when there are no other competitors in the market, so there is no need for a marketing strategy to differentiate its products.

Question 13

Environmental analysis helps managers identify potential threats and opportunities linked to environmental changes.

Accepted Answer

Environmental analysis is a process of assessing the external environment in which an organization operates. It helps managers identify potential threats and opportunities linked to changes in the environment, such as technological advancements, changes in laws and regulations, economic trends, social and cultural shifts, and ecological concerns. By identifying these factors, managers can develop strategies to adapt to changing circumstances and capitalize on emerging opportunities. Therefore, the statement is true.

Question 14

Credit increases current buying power at the expense of future buying power.

Accepted Answer

By using credit, individuals can increase their current purchasing power, but they will need to repay the borrowed amount plus interest in the future. This reduces their future buying power, as they will have to allocate a portion of their income towards debt repayment instead of spending on other items.

Question 15

The marketing environment consists of external forces that directly or indirectly influence an organization's acquisition of inputs and generation of outputs.

Accepted Answer

The statement accurately describes the definition of the marketing environment.

Question 16

The total amount of disposable income is affected by the amount of taxes consumers pay.

Accepted Answer

Taxes are subtracted from individual incomes as a mandatory government requirement, which ultimately impacts the available disposable income that consumers have.

Question 17

A recession is characterized by extremely high unemployment, very low wages, minimal total disposable income, and lack of consumer confidence in the economy.

Accepted Answer

The answer of A recession is characterized by extremely high...

Question 18

Pure competition is a common competitive environment.

Accepted Answer

Pure competition, characterized by a large number of small firms, identical products, and free entry and exit, is an idealized market structure and is rare in the real world. Most markets are characterized by some level of competition, but pure competition is more of a theoretical model than a common competitive environment.

Question 19

Wealth is an accumulation of past income, natural resources, and financial resources.

Accepted Answer

Wealth is defined as the accumulation of past income, natural resources, and financial resources. Therefore, the statement is true.

Question 20

Wealth enables consumers to gain buying power.

Accepted Answer

Wealth, in terms of income and assets, provides consumers with more financial resources to spend on goods and services, increasing their buying power.

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