Question 1

Fresh Meadows,an organic yogurt manufacturer,organizes camps to assist and encourage farmers in adopting organic farming practices.Fresh Meadows is engaging in socially responsible marketing.

Accepted Answer

Fresh Meadows is not only selling an organic product, but they are also taking the initiative to help farmers adopt sustainable and environmentally friendly practices. This shows that they are practicing socially responsible marketing.

Question 2

Demarketing is a reaction to a surplus of production materials that results in product supply exceeding demand.

Accepted Answer

Demarketing is a strategy used to reduce demand for a product, often due to limited supply or to manage consumption, not because of surplus production materials.

Question 3

The firm that provides regional expertise in a strategic alliance does not share the risks associated with the business.

Accepted Answer

In a strategic alliance, both firms share the risks associated with the business, including financial, operational, and reputational risks. This mutually beneficial agreement requires a shared commitment to success and a willingness to collaborate and compromise.

Question 4

In addition to planning for change,marketers must set goals to meet the concerns of customers,employees,shareholders,and members of the general public.

Accepted Answer

Marketers must take into account the concerns of various stakeholders and set goals to meet their expectations while implementing changes in the organization.

Question 5

A large pharmaceutical company invents a very small device that can be implanted in people with diabetes to provide time-released amounts of insulin.A patent for this invention will set up a temporary oligopoly for the company.

Accepted Answer

The answer of A large pharmaceutical company invents a very...

Question 6

A major constraint on consumer spending is deflation,which devalues money by reducing the products it can buy through persistent price increases.

Accepted Answer

Deflation actually increases the value of money by reducing prices, which can encourage consumer spending as they can buy more with their money. Inflation, on the other hand, can limit consumer spending as their money is devalued by persistent price increases.

Question 7

The governmental regulations that affect marketing practices are mainly for advertising and distribution,and do not place any restrictions and prohibitions on the design and packaging of products.

Accepted Answer

Governmental regulations also place restrictions and prohibitions on the design and packaging of products, such as warning labels and safety standards.

Question 8

The first phase of federal regulation of business was aimed at protecting competitors and included the Robinson-Patman Act,passed in the 1930s.

Accepted Answer

The answer of The first phase of federal regulation of...

Question 9

The federal government has imposed strict regulations on food advertising for children based on their nutritional standards.

Accepted Answer

As of October 2023, there is no federal mandate imposing strict regulations on food advertising for children based on nutritional standards in the United States.

Question 10

The most direct form of competition occurs among marketers of dissimilar products.

Accepted Answer

The most direct form of competition occurs among marketers of similar products.

Question 11

Technological innovations create not just new goods and services but also entirely new industries.

Accepted Answer

Technological innovations often create new goods and services, which in turn can create new industries. For example, the rise of smartphones as a new technology led to the creation of new industries such as mobile app development and mobile advertising.

Question 12

Ensuring ethical practices means promising customers and business partners to sacrifice quality and fairness for profit.

Accepted Answer

Ensuring ethical practices means prioritizing quality and fairness over profit, even if it means sacrificing short-term gains. Ethical companies believe that this approach leads to long-term success and a positive reputation.

Question 13

Acquisitions and mergers help firms with limited resources to gain access to new markets or new expertise.

Accepted Answer

Acquisitions and mergers can provide a way for companies to expand their reach by gaining access to new markets, customers, or expertise that may have been difficult or costly to develop on their own. This can help them to grow more quickly and efficiently, and to compete more effectively with other firms in their industry. However, there are also risks associated with mergers and acquisitions, such as integration challenges and cultural differences between the two companies, which must be carefully managed to ensure success.

Question 14

Electric power companies often give advice on how consumers can use less electricity during the summer and save money on their electric bills.This is an example of demarketing.

Accepted Answer

Demarketing refers to strategies used to decrease demand for a particular product or service. In this case, the electric power company is providing advice to consumers on how to use less electricity, which would result in decreased demand for electricity during the summer. The goal is to reduce the strain on the electric grid and potentially avoid blackouts, rather than trying to increase sales or consumption of electricity.

Question 15

People develop standards of ethical behavior based on their own systems of values.

Accepted Answer

Standards of ethical behavior are subjective and vary from person to person based on their individual values and beliefs.

Question 16

Sentencing guidelines act as an incentive for corporations to implement effective ethics compliance programs-if they are hauled into court,the existence of such a program can help reduce penalties.

Accepted Answer

The existence of effective ethics compliance programs can help corporations reduce penalties by showing their commitment towards ensuring ethical behavior and avoiding legal violations. Thus, sentencing guidelines act as an incentive for corporations to implement such programs.

Question 17

Public and private consumer interest groups and self-regulatory organizations are part of the legal environment.

Accepted Answer

Public and private consumer interest groups and self-regulatory organizations are entities that play a role in shaping the legal environment by advocating for consumer protection and promoting ethical business practices.

Question 18

The government's Do Not Call Registry exempts callers representing not-for-profit organizations and political candidates.

Accepted Answer

The government's Do Not Call Registry does exempt callers representing not-for-profit organizations and political candidates. These types of calls are still allowed even if individuals have registered their phone numbers on the Do Not Call list.

Question 19

The gross domestic product (GDP)of a nation does not take into consideration the goods and services that are exported to foreign markets.

Accepted Answer

The GDP of a nation includes the value of all goods and services produced within its borders, including those that are exported to foreign markets. However, the net exports (exports minus imports) are considered separately in the calculation of a nation's GDP.

Question 20

Six firms - GM,Ford,Chrysler,Toyota,Honda,and Nissan - share 90 percent of all U.S.auto sales.Hence the U.S.auto market can be regarded as a monopoly.

Accepted Answer

The U.S. auto market cannot be regarded as a monopoly because there are six firms competing with each other for market share. A monopoly would consist of a single firm with complete control over the market.

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