Question 1

The pricing component of the marketing mix is the focus of regulation from two perspectives:

Accepted Answer

The two perspectives of regulation for the pricing component of the marketing mix are price fixing and price discounting. Price fixing involves colluding with competitors to set prices at a certain level, which is illegal. Price discounting, on the other hand, may be regulated to prevent predatory pricing or price discrimination. Therefore, choice B is the correct answer.

Question 2

An arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors is referred to as a(n)__________.

Accepted Answer

The arrangement where a manufacturer agrees with a reseller to handle only its products and not those of competitors is known as exclusive dealing. Tying arrangement refers to a practice where a company sells a product or service on the condition that the buyer also purchases a different product or service. Requirement contracting is a form of long-term purchasing agreement, territorial dealership contracting is an arrangement where a manufacturer grants an independent entrepreneur the right to sell products, often within a specific geographic area, and selective distribution is a distribution strategy where a company selects a limited number of retailers or distributors to sell its products.

Question 3

A trademark is a device that can take almost any form,as long as it is capable of identifying and distinguishing specific products or services.NutraSweet's trademark for its pastel blue artificial sweetener packages is an example of a product that is protected by

Accepted Answer

NutraSweet's trademark for its pastel blue artificial sweetener packages is an example of a product that is protected by color.

Question 4

A trademark is a device that can take almost any form,as long as it is capable of identifying and distinguishing specific products or services.Owens-Corning Fiberglas Corporation's trademark for its pink insulation is an example of a product that is protected by

Accepted Answer

Owens-Corning Fiberglas Corporation's trademark for its pink insulation is protected based on its color, which is a specific shade of pink. This is known as a color trademark.

Question 5

In 1988,the Trademark Law Revision Act resulted in a major change to the Lanham Act.The change allows

Accepted Answer

The Trademark Law Revision Act of 1988 allowed for the filing of Intent-to-Use trademark applications, which enabled a company to secure rights to a name before its actual use. This change effectively expanded the scope of trademark protection.

Question 6

A software manufacturer will only sell its popular line of Harry Potter software games to retailers who will also carry its less successful Star Wars: The Prequel software game.This is an example of a(n)__________.

Accepted Answer

This is an example of a tying arrangement, where the sale of a popular product (Harry Potter software games) is tied to the sale of a less successful product (Star Wars: The Prequel software game). The manufacturer is forcing the retailers to also carry the less successful product in order to have access to the popular Harry Potter games.

Question 7

Which of the products in the Generics photo above is LEAST LIKELY to be concerned with having its name become generic?

Accepted Answer

The answer of Which of the products in the Generics...

Question 8

The Madrid Protocol is

Accepted Answer

The Madrid Protocol is a treaty that allows for the streamlined international registration of trademarks, making it easier for businesses to protect their trademark rights in multiple countries. The treaty facilitates the protection of U.S. trademark rights throughout the world.

Question 9

The Trademark Law Revision Act (1988)

Accepted Answer

The answer of The Trademark Law Revision Act (1988)
...

Question 10

The agent for John Grisham's latest novel has sold its rights to: a British publisher for sales in the United Kingdom and Ireland;a U.S.publisher for the United States and Canada;and an Australian publisher for Australia and New Zealand.This is an example of

Accepted Answer

This is an example of an exclusive territorial distributorship, as each publisher has exclusive rights to sell the book in their designated geographic region.

Question 11

Coca-Cola hired "brand police" to make sure that the Coca-Cola brand name and logo are not used without written permission.Why is Coca-Cola so rigorous in protecting its trademark?

Accepted Answer

Coca-Cola must prevent the name from becoming generic in order to maintain the use of its widely recognizable trademark. If the name becomes too commonly used or associated with all types of soda, it could lose its distinctiveness and become ineligible for trademark protection.

Question 12

The Trademark Law Revision Act (1988)addresses the right of a company to

Accepted Answer

The Trademark Law Revision Act (1988) allows companies to secure rights to a name before the product is even in use. This means that a company can file for a trademark before they have actually started using it in commerce, as long as they have a bona fide intention to use the mark in the future.

Question 13

__________ demand buyers purchase all or part of their needs for a product from a particular seller for a period of time.

Accepted Answer

Requirement contracts demand that buyers purchase all or part of their needs for a product from a particular seller for a period of time. Exclusive deals restrict buyers to purchase only from one particular seller. Tying arrangements require buyers to purchase one product only if they purchase another product as well. Territorial dealership contracts give exclusive rights to sell a product in a certain geographic area. Selective promotion contracts restrict the number of distributors that can sell a product.

Question 14

A seller's requirement that the purchaser of one product also buy another item in the line is called __________.

Accepted Answer

A tying arrangement is when a seller requires a buyer to purchase one product with the condition that they must also purchase another product in the line. This practice can limit competition and is often seen as anti-competitive behavior.

Question 15

In the Generics photo above,the manufacturers of these products are concerned that their brand names will become generic.The legislation most likely to address this issue is the __________.

Accepted Answer

The Lanham Act, also known as the Trademark Act of 1946, is the legislation that protects trademarks and trade names from becoming generic terms. It provides for registration of trademarks and trade names and prohibits the use of false advertising or misleading descriptions of products. Therefore, it is the most appropriate legislation to address the concern of the manufacturers of these products in the Generics photo.

Question 16

A situation in which a manufacturer grants a distributor the sole rights to sell a product in a specific geographic area is called __________.

Accepted Answer

An exclusive territorial distributorship is a situation in which a manufacturer grants a distributor the sole rights to sell a product in a specific geographic area. This is a form of exclusive dealing, which is a common distribution strategy used by manufacturers to control the distribution of their products. Other options listed, such as tying arrangements and selective promotion contracts, are not the same as exclusive territorial distributorships.

Question 17

In 2008,Apple filed for and received approval from the U.S.Patent and Trademark Office to trademark the "App Store" name to describe a service that allows its iPhone and iPad customers to purchase and download applications,video games,and other software.Over the past few years,Apple has invested millions in advertising and publicity and customers have purchased millions of dollars of software from its "App Store." However,Amazon.com claims that Apple did not have exclusive rights to the name because other firms used it to describe their online storefronts where consumers can obtain software for smartphones and tablet devices.In March 2011,Apple filed a lawsuit against Amazon for violating its trademark.Why should Apple rigorously protect its "App Store" trademark?

Accepted Answer

Apple must rigorously protect its "App Store" trademark in order to prevent it from becoming a generic term that can be used by anyone, which would dilute the value of the trademark and make it difficult for Apple to enforce its exclusivity in the future. This is important for Apple's brand identity and reputation, as well as its ability to maintain its competitive advantage in the marketplace.

Question 18

The Federal Dilution Act

Accepted Answer

The Federal Dilution Act aims to prevent dilution of a famous trademark's strength and prevent others from using a trademark on a non-competing product.

Question 19

The courts see price fixing as per se illegal,which means the courts

Accepted Answer

Per se illegal means that the courts consider the act of price fixing itself to be illegal, regardless of the specific circumstances surrounding the behavior. This is in contrast to behaviors that may be judged on a case-by-case basis, based on the particular context and industry standards. Therefore, the correct answer is A.

Question 20

If a major food company offered supermarket chains special prices and incentives to carry its brand of frozen vegetables and not to carry competing brands,it could be accused of __________ and would be subject to prosecution if its actions substantially reduce competition.

Accepted Answer

The scenario describes the practice of exclusive dealing, which involves a dominant company offering incentives to retailers to carry only their products and not those of competitors. This can be considered an antitrust violation if it substantially reduces competition in the market.

Quiz 3: Scanning the Marketing Environment