question

To monitor changes in the marketing environment effectively, marketers must engage in

answer

environmental scanning and analysis.

question

Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in

answer

environmental scanning

question

Three primary methods of collecting information for environmental scanning are

answer

observation, secondary sources, and marketing research.

question

Dell Computer collects information about a wide variety of competitive, economic, political, legal and regulatory, technological, and sociocultural forces that affect its marketing activities. This process is called

answer

environmental scanning

question

If M&M Mars Candies found a magazine article that provided key information on the television viewing habits of major candy consumer groups, this would be an example of information obtained through environmental

answer

scanning

question

XM Radio is concerned about how the increasing use of MP3 players will affect the future sales of its satellite radio service. The company decides to gather information about the changing trends in music access to prepare for this trend. XM Radio's process is called

answer

environmental scanning

question

Environmental scanning means ___________ information about the marketing environment, whereas environmental analysis is concerned with ___________ this information.

answer

collecting; assessing

question

When PepsiCo takes the information collected through research and attempts to assess and interpret what it means for its soft-drink marketing efforts, PepsiCo is engaged in environmental

answer

analysis

question

Nabisco learned that health-conscious consumers preferred lower fat snack and lowercarbohydrate foods. At the same time, the firm saw sales of such products slumping and was careful not to launch any new varieties of these products for a while. Which of the following best describes Nabisco's action?

answer

environmental analysis

question

Marketers who attempt to influence and change the various environmental forces have a(n) _____ response to these forces.

answer

proactive

question

Toyota has developed aluminum car bodies that are 100 percent recyclable and light enough to help conserve fuel. What kind of response is this to environmental forces?

answer

proactive

question

Although Matt's company engages in environmental scanning and analysis, he feels more comfortable changing his policies and strategies to adapt to environmental forces rather than trying to influence these forces. Matt has a(n) _____ approach to marketing environmental forces.

answer

reactive

question

Marketers who view political forces as being beyond their control are taking a ___________ response toward these forces.

answer

reactive

question

The textbook suggests that the best approach a firm can take in responding to marketing environmental forces is

answer

variable

question

When marketers define their target market, they establish a set of

answer

competitors

question

Companies that market products with similar features, benefits, and prices to the same customer group are known as _________ competitors.

answer

brand

question

Which of the following would represent a brand competitor for Ford's Escape Hybrid sport utility vehicle?

answer

Toyota's Highlander Hybrid

question

__________ competitors provide very different products that satisfy the same basic customer need.

answer

Generic

question

___________ competitors are those that compete in the same product class, but their products have different features, benefits, and prices

answer

product

question

Which of the following is not at the generic competitor level for Ford's Expedition sport utility vehicle?

answer

Saturn SKY

question

Marketers primarily focus their environmental analysis on ____ competitors.

answer

brand

question

In today's marketing environment, competitors can take on many forms. For example, Diet Coke can be seen as a competitor to Wrigley's Double Mint chewing gum. In this circumstance, these two products are described as ___________ competitors.

answer

total budget

question

Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Year's Eve party crowd instead of Korbel champagne. As a result of this action, Korbel and Hawaiian Punch can be viewed as ___________ competitors.

answer

generic

question

Companies that compete for the same limited financial resources of the same customers are known as _________ competitors.

answer

total budget

question

___________ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other.

answer

brand

question

Mixed Concrete cannot be shipped farther than twenty-five miles because the concrete might harden in the truck. Citrus County Concrete Company is the only supplier of mixed concrete to customers within a thirty-mile radius. Citrus County Concrete is an example of which one of the following competitive structures?

answer

monopoly

question

The four major competitive structures are

answer

oligopolies, monopolies, monopolistic competition, and pure competition

question

What type of competitive structure exists when a firm produces a product that has no close substitutes?

answer

monopoly

question

The type of competitive structure that exists in the case where there are almost no substitutes for a product is a(n)

answer

monopoly

question

The American automobile industry used to be dominated by "The Big Three," including General Motors, Ford, and Chrysler. However, as many more foreign competitors began influencing this market, the American companies had to modify and differentiate their products. The automobile industry moved from a(n) ______ structure to a(n) _______ structure.

answer

oligopolistic; monopolistic competition

question

The D-Lite Corporation produces a unique type of light bulb that is used in refrigerator manufacturing. D-Lite is the only maker of this light bulb, and there are no close substitutes for it. In this case, the D-Lite Corporation would be

answer

a monopoly

question

Which of the following firms would be most likely to have a monopoly for its competitive environment?

answer

TimeWarner Cable TV

question

Most marketers operate in a competitive environment of either

answer

oligopoly or monopolistic competition.

question

When a firm has many potential competitors and tries to develop a marketing strategy to differentiate its products from the competitors' products, a(n) _______ structure exists in the competitive environment.

answer

monopolistic competition

question

What type of competitive structure exists when just a few sellers control a large portion of the supply of a product?

answer

Oligopoly

question

If in an industry, none of the many sellers could influence the price of supply of its products, this industry would be characterized as

answer

pure competition

question

The tobacco industry in the United States is dominated by three large companies. When any one of these companies changes its price on tobacco products, the other two companies quickly adjust their prices to match it. From these characteristics, the tobacco industry could best be described as

answer

an oligopoly.

question

J. Pitner Clothing is a medium-size specialty men's and women's clothing store in a market with many other specialty stores, department stores, and discounters. It has established a reputation for offering high-quality, fashionable merchandise with quality service. J. Pitner's competitive environment would best be characterized as

answer

monopolistic competition.

question

In general, which of the following competitive structures is an organization least likely to operate?

answer

Pure competition

question

The two least common competitive structures at the opposite ends of the continuum are

answer

pure competition and monopolies.

question

The best approach for a company to take when monitoring its competitors is

answer

developing a system for gathering ongoing information about competitors.

question

Which of the following attributes of a Toyota Scion would be most appropriate to emphasize in television commercials during an economic recession?

answer

Durability

question

In a period of economic recovery, the best marketing strategy for FedEx would be characterized by which of the following features?

answer

Flexibility

question

Assuming that inflation is low, high buying power characterizes the _____ stage of the business cycle

answer

prosperity

question

During which stage of the business cycle is unemployment low and total income relatively high?

answer

Prosperity

question

Total buying power declines during periods of economic

answer

recession

question

Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economic

answer

recession

question

Consumers begin to become more price and value conscious during periods of

answer

recessions

question

Consumer confidence is at a low during periods of

answer

depression

question

Consumer confidence and willingness to spend begins to increase during periods of _____, and marketers must remain very flexible to make the necessary adjustments.

answer

recovery

question

The strength of a person's "buying power" depends on economic conditions and

answer

size of resources that can be traded in an exchange.

question

Why are marketers interested in consumers' levels of disposable income?

answer

It is a ready source of buying power.

question

The amount of money received through wages, rents, investments, pensions, and subsidies is called

answer

income

question

If Toby Roberts has an income of $30,000, pays $6,000 in rent, $1,200 in utilities, and $5,000 in taxes per year, his disposable income is

answer

$25,000

question

Which category of income are marketers most interested in?

answer

disposable income

question

What is the most important factor in distinguishing disposable income from income?

answer

consumer spending

question

A person's buying power is a function of

answer

income, wealth and credit

question

Discretionary income is associated with all of the following except

answer

food

question

Heidi decided to spend some of her saved money on tickets to a Cold Play concert coming to town, and now she is planning on buying a new outfit for the concert. What type of resources is Heidi making decisions about?

answer

Discretionary income

question

The accumulation of past income, natural resources, and financial resources is known as

answer

wealth

question

Which of the following companies would probably be most interested in tracking discretionary income levels?

answer

BMW automobiles

question

By offering credit and financing through its GMAC division, General Motors is trying to help consumers

answer

expand current buying power at the expense of future buying power.

question

When using credit to make purchases, consumers are

answer

increasing current buying power at the expense of future buying power.

question

Which of the following terms refers to consumers' propensity to buy?

answer

Willingness to spend

question

Although Shelby's income is comfortable, she hesitates to purchase a new car because she is concerned about how poor economic conditions may affect her company and in turn her future employment. Shelby lacks

answer

willingness to spend

question

Texas rice farmers wish to get their product into the Japanese market but are hindered by a complex maze of regulations imposed by the Japanese government. The farmers are most likely to attempt to influence which aspect of the marketing environment?

answer

Political

question

Textile companies historically face issues concerning the use of child labor in foreign countries and the various regulations created concerning this labor. The type of marketing environment forces executives for these companies are most likely to try to influence are ______ forces.

answer

political

question

Which of the following is not a reason that marketers try to maintain good relations with elected political officials?

answer

Political officials can accept direct corporate campaign contributions.

question

One way for corporations to attempt to influence the political environment is through

answer

organizing political action committees.

question

Which of the following acts was enacted to prevent businesses from restraining trade and monopolizing markets?

answer

Sherman Antitrust Act

question

If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating the

answer

Sherman Antitrust Act.

question

Which of the following provides protection for and regulates brand names, brand marks, trade names, and trademarks?

answer

Lanham Act

question

Procompetitive laws are those designed to

answer

preserve competition.

question

International Office Supplies Wholesaler charges different prices to its various customers without any legal justification. This company is in violation of the

answer

Robinson-Patman Act.

question

Price discrimination is prohibited by the ___________ Act

answer

Robinson-Patman

question

The 1990 Nutritional Labeling and Education Act directly prohibits

answer

exaggerated health claims on food packages.

question

Consumer protection legislation deals with all of the following legal concerns except

answer

monopolistic practices.

question

The Children's Online Privacy Protection Act prohibits websites and Internet providers from

answer

seeking personal information from children under the age of 13

question

Which of the following are the most frequently sentenced organizational crimes?

answer

Fraud and antitrust violations

question

Of all the federal regulatory units, the ____________ most heavily influences marketing activities.

answer

Federal Trade Commission (FTC)

question

Which of the following agencies would most likely have jurisdiction over the problem with lead in the paint of children's toys?

answer

Consumer Product Safety Commission

question

The FTC can issue a cease-and-desist order, which is an injunction to

answer

stop doing whatever caused the complaint

question

Which of the following agencies regulates marketing activities the most?

answer

Federal Trade Commission

question

Which of the following industries is most commonly regulated by state regulatory agencies?

answer

Utility companies

question

In its advertisements for Bud Light beer, Anheuser-Busch has decided to include a statement saying "Know when to say when." This is an example of which one of the following types of regulatory forces affecting marketing efforts?

answer

Self-regulation

question

Which of the following regulatory groups is a system of nongovernmental, independent, local regulatory agencies supported by local businesses?

answer

The Better Business Bureau

question

The Pharmaceutical Research and Manufacturers of America sets guidelines for its member firms to follow regarding the use of unethical practices. Thus, it is engaging in

answer

self-regulation.

question

Jared Bledsoe hires a local landscape firm to plant trees and shrubs in his yard. The firm plants mostly dead plants but refuses to return Jared's money or replace the dead items. Jared's best course of action would be to contact the

answer

Better Business Bureau.

question

The Better Business Bureau is probably the best-known

answer

nongovernmental regulatory group.

question

In its advertisements, Johnson's Hair Care Products claims that its KLTR-14 gel will restore the hair of bald men. Members of the NARB believe the claim is unsupportable. What action can the NARB take?

answer

File a complaint with the Federal Trade Commission.

question

Which of the following statements about self-regulatory programs is false?

answer

Self-regulatory guidelines generally are stricter than governmental regulatory programs.

question

Which of the following is an advantage that self-regulatory agencies such as the BBB and the NARB have over governmental laws and regulatory agencies?

answer

Establishment and implementation are usually less expensive.

question

When a firm continues to violate what the Better Business Bureau believes to be good business practices, what is one of the main actions the bureau will take?

answer

Warn consumers of the unfair practices.

question

What national self-regulatory organization screens ads?

answer

National Advertising Review Board

question

Technology is

answer

the application of knowledge and tools to solve problems and perform tasks more efficiently.

question

More than half of the research of technology created is paid for by

answer

the federal government

question

Newsweek enhances its visibility to readers by making its magazine available on the Internet. Newsweek is capitalizing on which environmental force?

answer

technological

question

The rapid adoption of the use of the Internet has resulted in rapid changes such as the increase of distance learning, changing social networks, and concerns such as copyright and privacy issues that the government is focusing on. These effects of technology are collectively known as

answer

dynamics

question

Which of the following is the best example of utilizing technology to improve consumer relationships?

answer

Waiters recording orders on handheld computers

question

Technology assessment is

answer

trying to foresee the effects of new products and processes on the firm's operation and on society in general.

question

When Cisco Systems attempts to anticipate the effect of new products and processes on its own innovations, other business organizations, and society in general, the firm is engaging in

answer

technology assessment.

question

Many health care companies are making adaptations to meet the needs of an aging population as the demand for medical services and products such as diabetes supplies increases. This change in marketing strategy is best explained by a change in

answer

demographics

question

People for the Ethical Treatment of Animals (PETA) have demonstrated against the sale of coats made of animal furs. PETA's efforts to change shoppers' attitudes represent a __________ force for fur retailers.

answer

sociocultural

question

By the turn of the twentieth century, the population of the United States had shifted to three large racial and ethnic groups. These groups are

answer

blacks, Hispanics, and whites.

question

In the near future, what subculture will become the second largest group in the United States?

answer

Hispanics

question

The Coca-Cola Company has recognized the significant increase in population diversity within the U.S. soft-drink market. Which one of the following best illustrates the company's integration of this knowledge into its marketing strategy?

answer

Ads featuring Hispanic actors and Tejano music

question

Organizations that provide smoke-free environments or low-fat products are responding to changes in

answer

cultural values.

question

Many well-known restaurants and corporations are changing to a completely smoke-free environment, and fewer restaurants offer smoking and nonsmoking sections. These firms are responding to changes in

answer

cultural values.

question

Consumerism is a

answer

diverse group of individuals and organizations attempting to protect the rights of consumers.

question

A group of protesters carries signs encouraging people to boycott Joe's Market, a small grocery store in an urban area. The protesters claim that Joe's takes unfair advantage of elderly and minority consumers. This protest is part of what we see today as the

answer

consumerism movement.

question

Meyers' Sporting Goods, a national chain, has been doing business with Soljur Sports, a manufacturer of skateboards, for several years. Recently, it came to the attention of Meyers' financial director that the average cost per Soljur Sports skateboard had substantially increased over that of the previous year. A corporate attorney was notified and began to look into the situation. The attorney found that Soljur Sports was selling a similar number of skateboards to a competitive chain for $10 less per skateboard. The attorney for Meyers' Sporting Goods immediately filed a complaint with the Federal Trade Commission. Suppose that the Soljur Sports company was actually discriminating against Meyer Sporting Goods with its price increase. Which of the following acts prohibits this type of business behavior?

answer

Robinson-Patman

question

Meyers' Sporting Goods, a national chain, has been doing business with Soljur Sports, a manufacturer of skateboards, for several years. Recently, it came to the attention of Meyers' financial director that the average cost per Soljur Sports skateboard had substantially increased over that of the previous year. A corporate attorney was notified and began to look into the situation. The attorney found that Soljur Sports was selling a similar number of skateboards to a competitive chain for $10 less per skateboard. The attorney for Meyers' Sporting Goods immediately filed a complaint with the Federal Trade Commission. If the Federal Trade Commission believes that Soljur Sporting Goods is acting in violation of the law, the first move for the FTC is to

answer

issue a complaint stating that the business is in violation of the law.

question

Meyers' Sporting Goods, a national chain, has been doing business with Soljur Sports, a manufacturer of skateboards, for several years. Recently, it came to the attention of Meyers' financial director that the average cost per Soljur Sports skateboard had substantially increased over that of the previous year. A corporate attorney was notified and began to look into the situation. The attorney found that Soljur Sports was selling a similar number of skateboards to a competitive chain for $10 less per skateboard. The attorney for Meyers' Sporting Goods immediately filed a complaint with the Federal Trade Commission. A regular customer of Meyers Sporting Goods feels that some of its advertisements are deceptive. He responded to an ad for sale skateboards one hour after the store opened and found that none were left. Where should he file a complaint?

answer

Better Business Bureau

question

Meyers' Sporting Goods, a national chain, has been doing business with Soljur Sports, a manufacturer of skateboards, for several years. Recently, it came to the attention of Meyers' financial director that the average cost per Soljur Sports skateboard had substantially increased over that of the previous year. A corporate attorney was notified and began to look into the situation. The attorney found that Soljur Sports was selling a similar number of skateboards to a competitive chain for $10 less per skateboard. The attorney for Meyers' Sporting Goods immediately filed a complaint with the Federal Trade Commission. Suppose that a customer has a complaint against Meyers Sporting Goods Stores. He files a complaint with the Better Business Bureau. What action could the BBB take against Meyers if the complaint was substantiated and Meyers did not change the offending practice?

answer

Issue a warning to consumers through the local newspaper.

question

A new U.S. automobile company, Specialty Motors, was established in 2004. In 2008, a recession caused disposable income to decline, and the annual amount of dollars spent by consumers for automobiles dropped drastically. Specialty Motors faced the problem of trying to determine whether the economy would turn toward prosperity or toward depression. No matter what happened, Specialty Motors was also worried about an impending global steel shortage, which would make a big difference in its future marketing plans. The economy might recover from the recession, but the automobile makers might be forced to ask consumers to curtail consumption just when the hope of a better year was finally in sight. All in all, the future looked dismal for Specialty Motors. Although all types of competition will affect Specialty Motors' marketing performance, it will be most concerned about _________ competitors.

answer

brand

question

A new U.S. automobile company, Specialty Motors, was established in 2004. In 2008, a recession caused disposable income to decline, and the annual amount of dollars spent by consumers for automobiles dropped drastically. Specialty Motors faced the problem of trying to determine whether the economy would turn toward prosperity or toward depression. No matter what happened, Specialty Motors was also worried about an impending global steel shortage, which would make a big difference in its future marketing plans. The economy might recover from the recession, but the automobile makers might be forced to ask consumers to curtail consumption just when the hope of a better year was finally in sight. All in all, the future looked dismal for Specialty Motors. In what type of competitive structure is Specialty Motors operating?

answer

Monopolistic competition

question

A new U.S. automobile company, Specialty Motors, was established in 2004. In 2008, a recession caused disposable income to decline, and the annual amount of dollars spent by consumers for automobiles dropped drastically. Specialty Motors faced the problem of trying to determine whether the economy would turn toward prosperity or toward depression. No matter what happened, Specialty Motors was also worried about an impending global steel shortage, which would make a big difference in its future marketing plans. The economy might recover from the recession, but the automobile makers might be forced to ask consumers to curtail consumption just when the hope of a better year was finally in sight. All in all, the future looked dismal for Specialty Motors. When Specialty Motors is operating during a recessionary period, its promotion efforts should stress

answer

value and utility.

question

A new U.S. automobile company, Specialty Motors, was established in 2004. In 2008, a recession caused disposable income to decline, and the annual amount of dollars spent by consumers for automobiles dropped drastically. Specialty Motors faced the problem of trying to determine whether the economy would turn toward prosperity or toward depression. No matter what happened, Specialty Motors was also worried about an impending global steel shortage, which would make a big difference in its future marketing plans. The economy might recover from the recession, but the automobile makers might be forced to ask consumers to curtail consumption just when the hope of a better year was finally in sight. All in all, the future looked dismal for Specialty Motors. Total disposable income is at its lowest during which of the following?

answer

Depression

question

A new U.S. automobile company, Specialty Motors, was established in 2004. In 2008, a recession caused disposable income to decline, and the annual amount of dollars spent by consumers for automobiles dropped drastically. Specialty Motors faced the problem of trying to determine whether the economy would turn toward prosperity or toward depression. No matter what happened, Specialty Motors was also worried about an impending global steel shortage, which would make a big difference in its future marketing plans. The economy might recover from the recession, but the automobile makers might be forced to ask consumers to curtail consumption just when the hope of a better year was finally in sight. All in all, the future looked dismal for Specialty Motors. The income a consumer would use to purchase a Specialty Motors automobile is considered ___________ income.

answer

discretionary

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