Question 1

Which of the following represents a monopolistic competition?
A) One firm completely controls a broad product-market.
B) Each competitor tries to get control in its "own" target market.
C) Competitors offer the same marketing mix.
D) Different marketing mixes are nevertheless seen as the same by all customers.
E) All customers view various alternatives as substitutes.

Accepted Answer

In monopolistic competition, different firms offer marketing mixes that at least some customers see as different. Each competitor tries to get control (a monopoly) in its "own" target market.

Question 2

A useful tool for organizing the competitor analysis is ________.
A) the table of competitive rivals
B) rivals chart
C) the oligopoly chart
D) a competitor grid
E) a competitor matrix

Accepted Answer

a competitor matrix

Question 3

X-Brand Bikes,a manufacturer of off-road bicycles,carefully developed a strategy for moving into South America.The strategy had poor results after interest rates and inflation rose rapidly in most of its South American markets,demonstrating the influence of the ________ environment on marketing strategy.
A) political
B) technological
C) social
D) legal
E) economic

Accepted Answer

economic

Question 4

When conducting a competitor analysis,it is important for managers to take the viewpoint of ________.
A) competitors
B) the CEO
C) target customers
D) supply chain partners
E) producers

Accepted Answer

A competitor analysis is an organized approach for evaluating the strengths and weaknesses of current or potential competitors' marketing strategies. To identify potential competitors, it is useful to take the viewpoint of target customers. Companies may offer quite different products, but they are competitors if customers see them as offering close substitutes.

Question 5

A ________ is an organized table that compares the strengths and weaknesses of a company with those of its competitive rivals.
A) competitive advantage
B) competitor matrix
C) insight table
D) positioning graph
E) competitor analysis

Accepted Answer

A useful tool for organizing the competitor analysis is a competitor matrix, an organized table that compares the strengths and weaknesses of a company with those of its competitive rivals.

Question 6

Which of the following observations is NOT TRUE of monopolistic competition?
A) A number of different firms offer marketing mixes that at least some customers see as different.
B) Marketing managers try to differentiate very similar products by relying on other elements of the marketing mix.
C) Each competitor tries to get a monopoly in its own target market.
D) Most marketing managers in developed economies do not face monopolistic competition.
E) Competition exists because some customers see various alternatives as substitutes.

Accepted Answer

Most marketing managers in developed economies face monopolistic competition.

Question 7

Swanson Beverages,Inc.,asks its marketing managers to compare the strengths and weaknesses of its current target market and marketing mix with what its competitors are doing (or are likely to do).In this context,what is the approach of Swanson Beverages?
A) Competitor clustering
B) Scenario analysis
C) Brand positioning
D) Marketing mix review
E) Competitor analysis

Accepted Answer

Competitor analysis is an organized approach for evaluating the strengths and weaknesses of current or potential competitors' marketing strategies.

Question 8

When a local bank in Kansas City makes loans to its small business customers,it charges them an interest rate for borrowing money.Interest rates are part of the ____________ environment.
A) cultural and social
B) economic
C) legal
D) political
E) competitive

Accepted Answer

Changes in the economy are often accompanied by changes in the interest rate. This is part of the economic environment.

Question 9

Rising costs and inflation are part of the uncontrollable ________ environment.
A) technological
B) economic
C) competitive
D) legal
E) social

Accepted Answer

Rising costs and inflation are part of the economic environment.

Question 10

Low consumer spending and a lack of adequate financing are conditions that arise mostly due to factors in:
A) the competitive environment.
B) the cultural and social environment.
C) the technological environment.
D) the political environment.
E) the economic environment.

Accepted Answer

Marketers that evaluate opportunities during an economic downturn can expect depressed consumer spending and a potential lack of financing from lending institutions. These considerations arise from within the economic environment.

Question 11

Which of the following is true of interest rates?
A) They often change with changes in the economy.
B) They affect consumer markets, but not business customers.
C) They usually decrease during periods of inflation.
D) They do not directly affect the total price borrowers must pay for loans.
E) They do not affect the prices buyers pay.

Accepted Answer

Changes in the economy are often accompanied by changes in the interest rate.

Question 12

What does the term economic environment refer to?
A) It refers to the unique micro-economic factors of local markets.
B) It refers to the application of science to convert resources to output.
C) It refers to the evaluation of the strengths and weaknesses of current competitors' marketing strategies.
D) It refers to a marketing mix that customers see as better than a competitor's mix.
E) It refers to the macro-economic factors that affect patterns of consumer and business spending.

Accepted Answer

It refers to the macro-economic factors that affect patterns of consumer and business spending.

Question 13

Increased demand for new homes due to low interest rates is an example of the impact of the ________ environment.
A) technological
B) cultural
C) competitive
D) economic
E) social

Accepted Answer

In the economic environment, interest rates directly affect the total price borrowers must pay for products. So the interest rate affects when, and if, they will buy.

Question 14

A change in the ________ environment can affect consumer purchases of homes,cars,and other items usually bought on credit.
A) legal
B) political
C) social or cultural
D) technological
E) economic

Accepted Answer

Changes in the economy are often accompanied by changes in the interest rate. It also affects consumer purchases of homes, cars, and other items usually bought on credit.

Question 15

A marketing manager may ethically and actively seek information about current or potential competitors by
A) searching a firm's public website.
B) waiting at a landfill for competitors' trash to find copies of confidential company reports.
C) using computer "hackers" to break into a competitor's computer network.
D) hiring people from competing firms and then asking them confidential information about the competitor.
E) spying on competitors to obtain trade secrets.

Accepted Answer

A firm that puts all of its marketing information on a public website for customers also makes it readily available to competitors.

Question 16

Which of the following is true of the economic environment?
A) It has no relationship to the technological environment.
B) It is not affected by the way all of the parts of the macro-marketing system interact.
C) It refers to micro-economic factors that do not affect business spending.
D) It can change very rapidly.
E) It never requires marketing managers to make immediate changes in strategy.

Accepted Answer

The economic environment can, and does, change quite rapidly. It refers to macro-economic factors that affect patterns of consumer and business spending.

Question 17

Regarding the competitive environment:
A) It is easy to find environments that are "competitor-free."
B) Monopoly situations are more common than are situations characterized by monopolistic competition.
C) "Competitive rivals" are a firm's closest competitors.
D) Competitor analysis should begin with an identification of competitors from the viewpoint of the manager, not the consumer.

Accepted Answer

Competitive rivals are firms that will be the closest competitors.

Question 18

The firms that are considered to be the organization's closest challengers are called ________ rivals.
A) aggressive
B) competitive
C) formal
D)
Passive
E) indirect

Accepted Answer

Competitive rivals are firms that will be the closest competitors.

Question 19

A firm that is unable to obtain financing to manufacture new products is likely encountering negative pressures from:
A) the competitive environment.
B) the technological environment.
C) the economic environment.
D) the political/legal environment.
E) the cultural/social environment.

Accepted Answer

The economic environment refers to macro-economic factors, including national income, economic growth, and inflation, that affect patterns of consumer and business spending. While marketers encounter many challenges from the external market environment, the inability of firms to acquire financing is usually due to forces in the economic environment.

Question 20

The marketing manager for a financial services firm knows that customer preferences for mutual funds and bond accounts will differ depending on the current interest rate.She must plan her offerings with the ________ environment in mind.
A) economic
B) social
C) technological
D) cultural
E) legal

Accepted Answer

In the economic environment, interest rates directly affect the total price borrowers must pay for products. So the interest rate affects when, and if, they will buy.

Quiz 5: Evaluating Opportunities in the Changing Market Environment

Which of the following represents a monopolistic competition?

A useful tool for organizing the competitor analysis is ________.

When conducting a competitor analysis,it is important for managers to take the viewpoint of ________.

A ________ is an organized table that compares the strengths and weaknesses of a company with those of its competitive rivals.

Which of the following observations is NOT TRUE of monopolistic competition?

Swanson Beverages,Inc.,asks its marketing managers to compare the strengths and weaknesses of its current target market and marketing mix with what its competitors are doing (or are likely to do) .In this context,what is the approach of Swanson Beverages?

When a local bank in Kansas City makes loans to its small business customers,it charges them an interest rate for borrowing money.Interest rates are part of the ____________ environment.

Rising costs and inflation are part of the uncontrollable ________ environment.

Low consumer spending and a lack of adequate financing are conditions that arise mostly due to factors in:

Which of the following is true of interest rates?

What does the term economic environment refer to?

Increased demand for new homes due to low interest rates is an example of the impact of the ________ environment.

A change in the ________ environment can affect consumer purchases of homes,cars,and other items usually bought on credit.

A marketing manager may ethically and actively seek information about current or potential competitors by

Which of the following is true of the economic environment?

Regarding the competitive environment:

The firms that are considered to be the organization's closest challengers are called ________ rivals.

A firm that is unable to obtain financing to manufacture new products is likely encountering negative pressures from:

The marketing manager for a financial services firm knows that customer preferences for mutual funds and bond accounts will differ depending on the current interest rate.She must plan her offerings with the ________ environment in mind.