MKTG ch 3 – Flashcard
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To monitor changes in the marketing environment effectively, marketers must engage in a) environmental scanning and analysis. b) economic scanning c) self-regulatory analysis d) marketing research analysis e) information collecting
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a
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Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in a) environmental analysis. b) competitive forces. c) environmental scanning. d) procompetitive legislation. e) self-regulatory forces.
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c
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Three primary methods of collecting information for environmental scanning are a) marketing research, company records, and advance orders. b) secondary sources, company records, and observation. c) executive knowledge, media, and marketing research. d) observation, secondary sources, and marketing research. e) company database, executive knowledge, and research.
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d
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Environmental scanning means ___________ information about the marketing environment, whereas environmental analysis is concerned with ___________ this information. a) assessing; collecting b) assessing; interpreting c) collecting; assessing d) interpreting; observing e) gathering; observing
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c
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Marketers who attempt to influence and change the various environmental forces have a(n) _____ response to these forces. a) reactive b) inactive c) variable d) positive e) proactive
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e
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Marketers who view political forces as being beyond their control are taking a ___________ response toward these forces. a) reactive b) aggressive c) proactive d) competitive e) liberal
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a
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The textbook suggests that the best approach a firm can take in responding to marketing environmental forces is a) reactive. b) proactive. c) inactive. d) active. e) variable.
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e
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When marketers define their target market, they establish a set of a) technologies. b) monopolies. c) competitors. d) government regulations. e) sociocultural forces.
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c
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Companies that market products with similar features, benefits, and prices to the same customer group are known as _________ competitors. a) generic b) product c) brand d) total budget e) monopolistic
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c
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Which of the following would represent a brand competitor for Ford's Escape Hybrid sport utility vehicle? a) Honda Pilot b) Toyota's Highlander Hybrid c) Honda Civic Hybrid d) Taxi ride
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b
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__________ competitors provide very different products that satisfy the same basic customer need. a) Brand b) Generic c) Total budget d) Product e) Marketing
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b
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___________ competitors are those that compete in the same product class, but their products have different features, benefits, and prices. a) Brand b) Generic c) Total budget d) Product e) price
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d
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Marketers primarily focus their environmental analysis on ____ competitors. a) Brand b) Generic c) Total budget d) Product e) Monopolistic
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a
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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. a) Pure b) Generic c) Total budget d) Product e) Monopolistic
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c
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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. a) Pure b) Generic c) Total budget d) Product e) Oligopolistic
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b
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Companies that compete for the same limited financial resources of the same customers are known as _________ competitors. a) Brand b) Generic c) Total budget d) Product e) Oligopolistic
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c
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___________ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other. a) Brand b) Generic c) Total budget d) Product e) Oligopolistic
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a
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The four major competitive structures are a) monopolies, oligopolies, oligopolistic monopolies, and pure competition. b) pure competition, heavy competition, moderate competition, and light competition. c) brand, product, total budget, and generic. d) oligopolies, monopolies, monopolistic competition, and pure competition. e) monopolies, limited competition, oligopolistic competition, and pure competition.
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d
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What type of competitive structure exists when a firm produces a product that has no close substitutes? a) Monopoly b) Oligopoly c) Monopolistic competition d) Pure competition e) Mixed competition
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a
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The type of competitive structure that exists in the case where there are almost no substitutes for a product is a(n) a) Monopoly b) Oligopoly c) Monopolistic competition d) Pure competition e) noncompetition
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a
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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. a) monopolistic; oligopolistic b) oligopolistic; pure competition c) oligopolistic; monopolistic competition d) monopolistic competition; pure competition e) monopolistic; monopolistic competition
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c
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Which of the following firms would be most likely to have a monopoly for its competitive environment? a) TimeWarner Cable TV b) Mitchell Trucking c) Continental Airlines d) Rogers Plumbing e) Chemlawn Lawn Care
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a
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Most marketers operate in a competitive environment of either a) oligopoly or monopoly. b) oligopoly or monopolistic competition. c) oligopoly or pure competition. d) monopoly or pure competition. e) pure competition or monopolistic competition.
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b
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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. a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition
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e
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What type of competitive structure exists when just a few sellers control a large portion of the supply of a product? a) oligopoly b) monopoly c) pure competition d) mixed competition e) monopolistic competition
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a
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If in an industry, none of the many sellers could influence the price of supply of its products, this industry would be characterized as a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition
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c
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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 a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition
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e
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In general, which of the following competitive structures is an organization least likely to operate? a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition
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c
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The two least common competitive structures at the opposite ends of the continuum are a) monopolies and oligopolies. b) pure competition and monopolies. c) monopolistic competition and monopolies. d) pure competition and no competition. e) oligopolies and pure competition.
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b
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The best approach for a company to take when monitoring its competitors is a) watching for increases and decreases in competitors' prices and match them. b) analyzing all information that is readily available about competitors. c) sending employees to competitors' offices and factories to observe their actions. d) developing a system for gathering ongoing information about competitors. e) reading important business publications such as The Wall Street Journal.
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d
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Which of the following attributes of a Toyota Scion would be most appropriate to emphasize in television commercials during an economic recession? a) Stereo system b) Prestige c) Durability d) Leg room
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c
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Assuming that inflation is low, high buying power characterizes the _____ stage of the business cycle. a) prosperity b) depression c) recovery d) succession e) recession
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a
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During which stage of the business cycle is unemployment low and total income relatively high? a) prosperity b) depression c) recovery d) succession e) recession
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a
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Total buying power declines during periods of economic a) prosperity b) uncertainty c) recovery d) expansion e) recession
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e
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Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economic a) prosperity b) uncertainty c) recovery d) expansion e) recession
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e
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Consumers begin to become more price and value conscious during periods of a) prosperity b) uncertainty c) recovery d) expansion e) recession
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e
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Consumer confidence is at a low during periods of a) recession. b) prosperity. c) recovery. d) slowdown. e) depression.
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e
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Consumer confidence and willingness to spend begins to increase during periods of _____, and marketers must remain very flexible to make the necessary adjustments. a) recession. b) prosperity. c) recovery. d) growth. e) depression.
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c
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Why are marketers interested in consumers' levels of disposable income? a) It accurately predicts future buying power. b) It increases current buying power. c) It is what is left after taxes and savings to buy luxuries with. d) It is a ready source of buying power. e) It is essential for forecasting future business trends.
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d
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The amount of money received through wages, rents, investments, pensions, and subsidies is called a) income. b) wealth. c) discretionary income. d) prosperity. e) credit.
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a
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Which category of income are marketers most interested in? a) Wealth b) Disposable income c) Discretionary income d) Total income e) Extra income
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b
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What is the most important factor in distinguishing disposable income from income? a) Taxes b) Housing c) Employment levels d) Consumer spending e) Saving
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d
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A person's buying power is a function of a) disposable income. b) past income, natural resources, and financial resources. c) wages, rents, and investments. d) income, wealth, and credit. e) discretionary income.
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d
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Discretionary income is associated with all of the following except a) automobiles. b) education. C) pets. d) furniture. e) food.
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e
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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? a) Disposable income b) Wealth c) Buying power d) Discretionary income e) Savings income
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d
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The accumulation of past income, natural resources, and financial resources is known as a) income b) collected income c) credit d) wealth e) savings
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d
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By offering credit and financing through its GMAC division, General Motors is trying to help consumers a) expand future buying power at the expense of current buying power. b) expand disposable income at the expense of discretionary income. c) expand current buying power at the expense of future buying power. d) expand both disposable income and wealth. e)decrease both disposable and discretionary income.
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c
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When using credit to make purchases, consumers are a) decreasing current buying power and increasing future buying power. b) increasing their present discretionary income to extend purchasing power. c) putting themselves at significant risk of financial disaster. d) forgoing the accumulation of wealth to increase current income. e) increasing current buying power at the expense of future buying power.
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e
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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? a) Sociocultural b) Technological c) Competitive d) Economic e) Political
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e
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Which of the following is not a reason that marketers try to maintain good relations with elected political officials? a) Political officials can influence how much a government agency purchases and from whom. b) Political officials can play key roles in helping organizations secure foreign markets. c) Political officials well disposed toward particular firms or industries are less likely to create or enforce laws and regulations unfavorable to these firms. d) Political officials can accept direct corporate campaign contributions. e) Political officials who believe that companies in a particular industry are making honest efforts to control pollution are unlikely to create and enforce highly restrictive pollution control laws over that industry.
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d
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One way for corporations to attempt to influence the political environment is through a) special benefits to employees. b) direct contributions to candidates. c) contributions to elected officials. d) contributions to political action committees. e) organizing political action committees.
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e
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Which of the following acts was enacted to prevent businesses from restraining trade and monopolizing markets? a) Sherman Antitrust Act b) Clayton Act c) Federal Trade Commission Act d) Robinson-Patman e) Act Wheeler-Lea Act
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a
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If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating the a) Sherman Antitrust Act b) Clayton Act c) Federal Trade Commission Act d) Robinson-Patman e) Act Wheeler-Lea Act
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a
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Which of the following provides protection for and regulates brand names, brand marks, trade names, and trademarks? a) Sherman Act b) Clayton Act c) Robinson-Patman Act d) Lanham Act e) Celler-Kefauver Act
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d
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Procompetitive laws are those designed to a) preserve competition. b) protect the consumer. c) ensure product safety. d) reduce competition. e) limit business lobbying of government officials.
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a
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International Office Supplies Wholesaler charges different prices to its various customers without any legal justification. This company is in violation of the a) Sherman Act b) Clayton Act c) Robinson-Patman Act d) Lanham Act e) Celler-Kefauver Act
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c
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Price discrimination is prohibited by the ___________ Act. a) Sherman Act b) Clayton Act c) Robinson-Patman Act d) Lanham Act e) Celler-Kefauver Act
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c
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The 1990 Nutritional Labeling and Education Act directly prohibits a) exaggerated claims made by health and fitness products. b) putting the words "cholesterol-free" on any food package. c) putting nutritional information on most food products. d) exaggerated health claims on food packages. e) the use of any health claim on food packaging.
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d
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Consumer protection legislation deals with all of the following legal concerns except a) consumer safety. b) sale of hazardous products. c) monopolistic practices. d) information disclosure. e) health claims on food packages.
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c
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Which of the following are the most frequently sentenced organizational crimes? a) False advertising and price discrimination b) Price discrimination and fraud c) Fraud and antitrust violations d) Price fixing and antitrust violations e) Fraud and price fixing
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c
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Of all the federal regulatory units, the ____________ most heavily influences marketing activities. a) Food and Drug Administration (FDA) b) Federal Communications Commission (FCC) c) Environmental Protection Agency (EPA) d) Federal Trade Commission (FTC) e) Federal Power Commission (FPC)
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d
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Which of the following agencies would most likely have jurisdiction over the problem with lead in the paint of children's toys? a) Consumer Product Safety Commission b) Children's Online Protection Act c) Food and Drug Administration d) Environmental Protection Agency e) National Advertising Review Board
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a
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The FTC can issue a cease-and-desist order, which is an injunction to a) report to the FTC immediately. b) stop doing whatever caused the complaint. c) appear before the courts. d) pay for damages caused by negligence of the firm. e) close down the firm until further notice.
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b
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Which of the following agencies regulates marketing activities the most? a) Food and Drug Administration b) Federal Communications Commission c) Environmental Protection Agency d) Federal Trade Commission e) Federal Power Commission
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d
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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? a) Federal regulation b) State regulation c) City regulation d) Self-regulation e) Social regulation
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d
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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 a) legislation. b) lobbying. c) self-regulation. d) environmental scanning. e) trade restraint.
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c
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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 a) police. b) Federal Trade Commission. c) Sherman Commission. d) Better Business Bureau. e) federal district court.
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d
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The Better Business Bureau is probably the best-known a) nongovernmental regulatory group. b) state-operated enforcement agency. c) national evaluator of advertisements. d) federal regulatory group. e) self-regulatory unit operating at the national level.
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a
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Which of the following statements about self-regulatory programs is false? a) Self-regulatory programs are usually less expensive than governmental regulatory programs. b) Self-regulatory programs' guidelines generally are more realistic and operational. c) Nongovernmental self-regulatory programs have neither the tools nor the authority to enforce guidelines. d) Self-regulatory guidelines generally are stricter than governmental regulatory programs. e) When a trade association sets up industry guidelines, some firms that are in the industry but not in the trade association do not follow the guidelines.
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d
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What national self-regulatory organization screens ads? a) Federal Advertising Review Division b) National Advertising Review Board c) Federal Communications Commission d) Consumer Federation of America
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b
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Technology is a) the application of scientific knowledge to build products that customers desire. b) the application of knowledge and tools to solve problems and perform tasks more efficiently. c) applied sciences. d) one of the weakest marketing environment forces. e) the result of research performed primarily by universities.
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b
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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 a) reach. b) the self-sustaining nature. c) growth. d) technological advancement. e) dynamics.
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e
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Technology assessment is a) measuring how much technology has been incorporated into an organization. b) trying to foresee the effects of new products and processes on the firm's operation and on society in general. c) assessing how much technology one wants to incorporate into a company in the future. d) judging how a firm's products affect society. e) weighing the cost of new technology to determine whether a firm can afford to use it.
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b
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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 a) product differentiation. b) monopolistic competition. c) technology assessment. d) distinctive promotional methods. e) innovative marketing.
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c
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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 a) demographics. b) cultural values. c) income levels. d) consumerism. e) subcultures.
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a
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Organizations that provide smoke-free environments or low-fat products are responding to changes in a) technology. b) the legal environment. c) demographics. d) cultural values. e) political forces.
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d
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Consumerism is a a) diverse group of individuals and organizations opposed to foreign producers that sell products in the United States that are much cheaper than those produced by U.S. manufacturers. b) social movement that is trying to encourage consumer satisfaction. c) social movement that is reorganizing the Council of Better Business Bureaus. d) diverse group of individuals and organizations attempting to protect the rights of consumers. e) social movement that provides consumers with means for expressing satisfaction and expressing their gratitude to producers.
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d
