Question 1

Pill Makers Pharmaceuticals extensively tests all of its drugs to assure that it follows the ____.
A) Sherman Act
B) Pure Food and Drug Act
C) Federal Trade Commission Act
D) Magnuson-Moss Act
E) Clayton Act

Accepted Answer

The Pure Food and Drug Act requires extensive testing of drugs.

Question 2

If Climbing High Ladder Company produced ladders that were unstable and caused many injuries,the ________ has the power to force the company to recall its product.
A) Consumer Product Safety Commission
B) Food and Drug Administration
C) Federal Trade Commission
D) Environmental Protection Agency
E) Consumer Protection Agency

Accepted Answer

The Consumer Product Safety Commission has the power to force a product off the market, or require expensive recalls to correct problems.

Question 3

Product warranties are the focus of the ________ Act.
A) Lemon
B) Magnuson-Moss
C) Sherman
D) Federal Trade Commission
E) Robinson-Patman

Accepted Answer

As shown in Exhibit 3-4, the Magnuson-Moss Act focuses on product warranties.

Question 4

The attitudes and behavior patterns of people are part of the
A) political environment.
B) social and cultural environment.
C) competitive environment.
D) firm's resources and objectives.
E) economic and technological environment.

Accepted Answer

The cultural and social environment affects how and why people live and behave as they do.

Question 5

Which of the following newspaper headlines is MOST LIKELY to be a result of changes in the cultural and social environment?
A) "McDonald's Changes Its Menu to Cater to Low-Carb Dieters."
B) "General Motors Offers Original Equipment Car Stereos with Satellite Radio Service."
C) "Treasury Department Introduces New Currency to Combat Counterfeiters."
D) "New Projection TVs Are Thinner, Lighter than Traditional TVs."
E) "Gasoline Prices Increase Sharply."

Accepted Answer

Many variables make up the cultural and social environment. Some examples are the languages people speak; the type of education they have; their religious beliefs; what type of food they eat; the style of clothing and housing they have; and how they view work, marriage, and family.

Question 6

The Magnuson-Moss Act of 1975 focuses on which of the four Ps?
A) Price
B) Place
C) Promotion
D) People
E) Product

Accepted Answer

As shown in Exhibit 3-4, the Magnuson-Moss Act focuses on product which is one of the four Ps.

Question 7

The languages people speak,the type of education they have,and their religious beliefs are examples of the ________ environment.
A) political
B) economic
C) cultural and social
D) legal
E) technological

Accepted Answer

The cultural and social environment affects how and why people live and behave as they do. Some examples are the languages people speak; the type of education they have and their religious beliefs.

Question 8

Regarding the current legal environment facing U.S.marketing managers:
A) state and local laws vary but contain important regulations.
B) food and drugs are now controlled.
C) product safety is now controlled.
D) businesses and individual managers are subject to both criminal and civil laws.
E) all of these statements about the legal environment are correct.

Accepted Answer

Besides federal legislation marketers must be aware of state and local laws which vary but contain important regulations; food and drugs, and product safety are now controlled and businesses and individual managers are subject to both criminal and civil laws.

Question 9

The recent interest in physical fitness has forced producers of food,clothing,and other products to reconsider their marketing strategies.Which of the following does this trend illustrate?
A) Economic and technological environments.
B) Cultural and social environment.
C) Existing business situation.
D) Political and legal environment.
E) Resources and objectives of the firm.

Accepted Answer

Many variables make up the cultural and social environment. Some examples are the languages people speak; the type of education they have; their religious beliefs; what type of food they eat; the style of clothing and housing they have; and how they view work, marriage, and family. Physical fitness is a variable in this environment also.

Question 10

A marketing analyst for a chicken processor reports that a rising percentage of people are eating chicken because it has less fat than beef.Clearly,this firm's opportunities may improve with this change in the
A) technological environment.
B) cultural and social environment.
C) economic environment.
D) political and legal environment.
E) competitive environment.

Accepted Answer

Many variables make up the cultural and social environment. Some examples are the languages people speak; the type of education they have; their religious beliefs; what type of food they eat; the style of clothing and housing they have; and how they view work, marriage, and family.

Question 11

Consumer emphasis on fitness has created opportunities for firms like Nike,Nautilus and Schwinn,and illustrates the impact of the changing:
A) technological environment.
B) economic environment.
C) competitive environment.
D) cultural and social environment.
E) political and legal environment.

Accepted Answer

Many variables make up the cultural and social environment. Some examples are the languages people speak; the type of education they have; their religious beliefs; what type of food they eat; the style of clothing and housing they have; and how they view work, marriage, and family. Fitness is a variable in this environment also.

Question 12

Seniors and baby boomers are among the fastest-growing demographic groups on Facebook.Marketers need to study such trends because:
A) people in this demographic are known for being techno-savvy.
B) baby boomers typically have little money to spend.
C) very large numbers of people make up this demographic.
D) online ads are most effective when seen by people of all ages.
E) seniors have played a major role in the social media revolution.

Accepted Answer

Baby boomers born between 1946 and 1964 are a powerful demographic force as there are large numbers of people in this group.

Question 13

Despite the Antimerger Act,there has been some leniency in allowing mergers between firms that have been competitors.When considering a merger,companies should take this aspect of the _____________ environments into consideration.
A) legal and political
B) cultural and economic
C) technological and legal
D) social and cultural
E) political and economic

Accepted Answer

Changes in the political environment often lead to changes in the legal environment and in the ways existing laws are enforced.

Question 14

The Wheeler-Lea Amendment specifically aims at ________.
A) product warranties
B) product safety
C) unfair or deceptive practices
D) tying and exclusive dealing contracts
E) mergers and acquisitions

Accepted Answer

As shown in Exhibit 3-4, the Wheeler-Lea Amendment aims at unfair or deceptive practices.

Question 15

Safety standards for products such as bicycles are set by the ________.
A) Consumer Product Safety Commission
B) U.S. Department of Transportation
C) Federal Trade Commission
D) Environmental Protection Agency
E) Food and Drug Administration

Accepted Answer

The Consumer Product Safety Act (of 1972) set up the Consumer Product Safety Commission. The commission found the bicycle the most hazardous product under its control.

Question 16

The Pure Food and Drug Act:
A) was the first consumer protection law.
B) was passed by Congress in 1906.
C) shifted the focus from "let the buyer beware."
D) bans the shipment of unsanitary products.
E) All of these are correct.

Accepted Answer

Consumer protection laws in the United States go back to 1906 when Congress passed the Pure Food and Drug Act. The law now bans the shipment of unsanitary products. Before the law, it was assumed that the old warning "let the buyer beware" would take care of consumers.

Question 17

A carpet cleaning firm runs a newspaper ad stating: "Special this month only! Three rooms of carpet cleaned for $39.95!" In each of the next ten months,the firm runs the same ad.A consumer advocacy group files suit against the carpet cleaning firm,contending that the ad is deceptive.The suit charges that the ad makes it seem as though the $39.95 price is a special price that will increase at the end of the month,when in reality,the price never changes.The U.S.federal law governing this type of situation is the ________.
A) Robinson-Patman Act
B) Clayton Act.
C) Sherman Act
D) Magnuson-Moss Act
E) Wheeler-Lea Amendment

Accepted Answer

As shown in Exhibit 3-4, the Wheeler-Lea Amendment aims at unfair or deceptive practices.

Question 18

The Consumer Product Safety Commission is responsible for:
A) developing and enforcing safety standards for bicycles.
B) developing and enforcing environmental protection standards.
C) preventing the distribution and sale of adulterated or misbranded foods, drugs, and cosmetics.
D) None of these is correct.

Accepted Answer

The Consumer Product Safety Act (of 1972) set up the Consumer Product Safety Commission. The commission found the bicycle the most hazardous product under its control.

Question 19

Which of the following laws is primarily concerned with product warranties?
A) The Sherman Act
B) The Robinson-Patman Act
C) The Federal Trade Commission Act
D) The Magnuson-Moss Act
E) There are no laws regulating product warranties.

Accepted Answer

As shown in Exhibit 3-4, the Magnuson-Moss Act focuses on product warranties.

Question 20

A company would be charged with product warranty violations under the ________ Act.
A) Total Quality Management
B) Robinson-Patman
C) Federal Trade Commission
D) Magnuson-Moss
E) Antimerger

Accepted Answer

As stated in Exhibit 3-4, the Magnuson-Moss Act focuses on product warranties.

Quiz 5: Evaluating Opportunities in the Changing Market Environment

Pill Makers Pharmaceuticals extensively tests all of its drugs to assure that it follows the ____.

If Climbing High Ladder Company produced ladders that were unstable and caused many injuries,the ________ has the power to force the company to recall its product.

Product warranties are the focus of the ________ Act.

The attitudes and behavior patterns of people are part of the

Which of the following newspaper headlines is MOST LIKELY to be a result of changes in the cultural and social environment?

The Magnuson-Moss Act of 1975 focuses on which of the four Ps?

The languages people speak,the type of education they have,and their religious beliefs are examples of the ________ environment.

Regarding the current legal environment facing U.S.marketing managers:

The recent interest in physical fitness has forced producers of food,clothing,and other products to reconsider their marketing strategies.Which of the following does this trend illustrate?

A marketing analyst for a chicken processor reports that a rising percentage of people are eating chicken because it has less fat than beef.Clearly,this firm's opportunities may improve with this change in the

Consumer emphasis on fitness has created opportunities for firms like Nike,Nautilus and Schwinn,and illustrates the impact of the changing:

Seniors and baby boomers are among the fastest-growing demographic groups on Facebook.Marketers need to study such trends because:

Despite the Antimerger Act,there has been some leniency in allowing mergers between firms that have been competitors.When considering a merger,companies should take this aspect of the _____________ environments into consideration.

The Wheeler-Lea Amendment specifically aims at ________.

Safety standards for products such as bicycles are set by the ________.

The Pure Food and Drug Act:

The Consumer Product Safety Commission is responsible for:

Which of the following laws is primarily concerned with product warranties?

A company would be charged with product warranty violations under the ________ Act.