Ch3 The Marketing Environment Exam Prep - Applied Marketing 2e | Complete Test Bank by Daniel Padgett. DOCX document preview.
Applied Marketing, 2e (Padgett)
Chapter 3 The Marketing Environment
1) The micro-environment is sometimes referred to as the internal environment.
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Communication
Standard 2: Bloom's || Knowledge
2) The micro-environment is also referred to as the external environment.
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Comprehension
3) A company has an immediate environment.
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Communication
Standard 2: Bloom's || Comprehension
4) The marketer should only be concerned about the parts of the micro- and macro-environments that are under his or her control.
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Comprehension
5) Although the components of the macro-environment seem to be removed from day-to-day decision making, major threats can emerge quickly, demanding immediate attention.
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Comprehension
6) Marketers need to pay careful attention to the market dynamics in their suppliers' marketplaces as threats to the marketer's firm can arise in those markets.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Comprehension
7) Consumer groups are not an essential part of the firm's micro-environment if they are not made up of customers.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Knowledge
8) Marketers are aware of all five SPENT areas of the macro-environment but focus only on those two or three that affect their products and services the most.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Comprehension
9) In the social/cultural area of the macro-environment, demographics can be obtained by many firms. One way this information is used is to predict consumer behavior.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Comprehension
10) When looking at the macro-environment, "income" and "wealth" are synonymous.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Knowledge
11) How many factors make up the marketing environment?
A) 1
B) 2
C) 3
D) 4
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Communication
Standard 2: Bloom's || Comprehension
12) Which term best describes anything in the environment that directly affects or is directly affected by the marketing manager's decisions?
A) Micro-environment
B) Macro-environment
C) Mature Economy
D) Market
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Knowledge
13) Which term best describes the combinations of controllable and uncontrollable forces that affect a marketing decision?
A) Marketing Environment
B) Marketing intermediaries
C) Market Share
D) Micro-Environment
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Knowledge
14) The part of the marketing environment that is closely linked to the day-to-day business decisions is known as
A) the business environment.
B) the central environment.
C) the micro-environment.
D) the macro-environment.
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Comprehension
15) Which of the following statements is true as it relates to a firm's marketing environment?
A) Both the micro- and macro-environments are important to marketing managers.
B) Managers typically have more control over their micro-environment.
C) Environmental forces may be of different levels of importance to different firms.
D) All statements are true.
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Communication
Standard 2: Bloom's || Knowledge
16) The internal-related components of a SWOT analysis relate to which micro-environmental force?
A) Company
B) Customers
C) Competitors
D) Publics
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Communication
Standard 2: Bloom's || Comprehension
17) Which part of the marketing environment focuses on day-to-day business decisions?
A) Micro-environment
B) Macro-environment
C) Mixed-environment
D) Metro-environment
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Communication
Standard 2: Bloom's || Knowledge
18) People sometimes refer to the macro-environment with which of the following terms?
A) Internal environment
B) External environment
C) Competition
D) Global forces
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Communication
Standard 2: Bloom's || Knowledge
19) What forces in the marketing environment help marketing managers in their decision making?
A) Controllable and uncontrollable forces
B) Financial and accounting forces
C) Personnel and corporate forces
D) Social and environmental forces
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Comprehension
20) Which of the following has an indirect impact on marketing decisions?
A) The micro-environment
B) The macro-environment
C) The social environment
D) The financial environment
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Comprehension
21) The most controllable influence on an exchange between consumers is
A) the suppliers.
B) the competition.
C) the company.
D) the retailers.
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Comprehension
22) What types of decisions must marketing managers make when considering the micro-environment?
A) What the companies produce and what the competition does better
B) What ideas are trending and what will the future be
C) What can be done through technology to enhance a better environment
D) What the customer wants and what the competition can offer
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
23) Which element would be categorized in the micro-environment for managers at Ben & Jerry's?
A) Ingredients
B) Population trends
C) Cultural beliefs
D) Legal regulations
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Application
24) Which element would be categorized in the macro-environment for managers at Ben & Jerry's?
A) Cultural beliefs
B) Ingredients
C) Prices
D) Flavors
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Application
25) Controllable and uncontrollable forces that affect marketing decision make up the
A) marketing environment.
B) micro-environment.
C) market.
D) macro-environment.
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Application
26) Despite the large number of elements in the marketing environment, the marketer should focus on those that affect
A) facilitating an exchange.
B) beating the competition.
C) introducing a successful product.
D) meeting laws and regulations.
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Communication
Standard 2: Bloom's || Application
27) Given the nature of technology today, technology markets are considered to be
A) disrupted markets.
B) volatile markets.
C) revolving markets.
D) evolving markets.
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Technology
Standard 2: Bloom's || Application
28) What is the key distinction between the micro marketing environment from the macro-environment?
A) The ability to affect a company's marketing decisions for a specific product
B) The level of impact on a company's profit margin
C) The amount of control a company or manager has over the environmental elements
D) The type of impact the environmental elements have on customers
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Analysis
29) What is the best similarity between the micro- and macro-environments?
A) The amount of time needed to monitor the various environmental elements
B) The type of impact the environmental elements have on company decision making
C) The level of predictability in market trends
D) The ability to influence decisions that facilitate an exchange
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Analysis
30) You are a marketing manager for a company that manufactures infant car seats. Which of the following involves the macro-environment?
A) Advertising issues about media formats and frequency
B) Government regulations regarding installation and safety features
C) Viability of contracts with plastic and fabric suppliers
D) Shelf space issues with retail stores
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
31) Airbnb can be viewed as what type of competitor to hotels?
A) Unexpected
B) Secondary
C) Evolving
D) Primary
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
32) Burger King's decision to expand their menu to include the plant-based Impossible Burger is an example of which class of environmental force impact a different class?
A) Micro-environment force > micro-environment force
B) Micro-environment force > macro-environment force
C) Macro-environment force > macro-environment force
D) Macro-environment force > micro-environment force
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Communication
Standard 2: Bloom's || Application
33) As consumers increase online purchases with home delivery, last-mile delivery expenses have become increasingly important to marketers. Over half of the total cost of shipping a product from a warehouse (such as an Amazon distribution center) to a consumer's home occurs during the last phase (within a city to a customer's home) of the delivery cycle. Marketers are looking at the gig economy as one of a range of possible solutions. The idea is to pay individual sub-contractors (think of Uber drivers) to accomplish deliveries. This synopsis relates primarily to which environmental force?
A) Customers
B) Intermediaries
C) Social/cultural
D) Economic
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
34) One consequence of the COVID-19 pandemic is that firms have been reluctant to have employees travel to attend business meetings. Since communications among employees remain critical to success, alternative meeting formats have flourished. Many believe that, even after the pandemic ends, these formats will remain popular due to lower cost and greater flexibility. Industries such as airlines, hotels, and conference centers suddenly view a service like Zoom as what?
A) Primary competitor
B) Secondary competitor
C) Unexpected competitor
D) Direct competitor
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
35) Consumer habits relative to viewing content have changed from an established market to an evolving market. This is primarily a function of which environmental force?
A) Economic — Increased segmentation among viewing options has resulted in smaller audiences and, hence, less money available for program production.
B) Social/cultural — Younger audiences (Millennials and Generation Z) spend considerably less time watching television programs.
C) Technology — Streaming services have shifted viewing patterns, Internet availability has opened more delivery options, non-linear viewing has affected advertising participation.
D) Competition — Barriers to entry have come down and led to the entrée of a wide range of new content deliverers.
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Synthesis
36) Which term best describes a collection of buyers and sellers interested in making similar or related exchanges?
A) Market
B) Developing Economy
C) Mature Economy
D) Publics
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Knowledge
37) Which term best describes a market having relatively stable competitors and customers?
A) Established Markets
B) Evolving Markets
C) Federal Trade Commission (FTC)
D) Macro-environment
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Knowledge
38) Which term best describes a market that is changing rapidly and does not have stable competitors or customers?
A) Evolving Markets
B) Established Markets
C) Federal Trade Commission (FTC)
D) Macro-environment
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Knowledge
39) Which term best describes the most important micro-environment element, the opposite partner in an exchange?
A) Customer
B) Company
C) Competitor
D) Suppliers
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Knowledge
40) Which of the following is NOT one of the three types of competitors?
A) Primary competitors
B) Secondary competitors
C) Insignificant competitors
D) Unexpected competitors
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Comprehension
41) Which of the following terms refers to companies that perform functions that help connect the company to the customer in some way?
A) Marketing intermediaries
B) Secondary competitors
C) Publics
D) Suppliers
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Communication
Standard 2: Bloom's || Knowledge
42) Which of the following is the most directly controllable of all the potential influences on an exchange?
A) Customers
B) Markets
C) Company
D) Competitors
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Communication
Standard 2: Bloom's || Knowledge
43) Which of the following represents the various types of markets?
A) Traditional and urban
B) Niche and specialty
C) Established and evolving
D) E-commerce and digital
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Comprehension
44) The most important elements in the internal environment are the
A) end customers and resellers.
B) loyal and repeat customers.
C) e-commerce and traditional customers.
D) high-end and bargain customers.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Comprehension
45) The primary purpose of marketing intermediaries is to
A) help build relationships with the community.
B) help share the cost of doing business.
C) help connect the company to the customer.
D) help strengthen relationships along employee lines.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Comprehension
46) What term best describes the relationship of Walmart to consumer packaged goods giant Procter & Gamble?
A) Supplier
B) Intermediary
C) Reseller
D) Retailer
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Knowledge
47) A national movie theatre chain like AMC Theatres would consider which of the following organizations an indirect competitor?
A) Cinemark Theatres
B) ESPN
C) Netflix
D) Google
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Knowledge
48) The outbreak of COVID-19 in the United States caused the closure of many wholesalers serving the restaurant industry. As more consumers stayed home and stopped visiting restaurants, demand at grocery stores for certain products increased and manufacturers scrambled to maintain adequate inventory in stores. Which micro-environmental force is reflected in this instance?
A) Company
B) Customers
C) Intermediaries
D) Publics
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Knowledge
49) A Customer who purchases a product to use personally, such as grocery shoppers that buy Ben & Jerry's to take home for dessert is a(n)
A) end consumer.
B) company.
C) competitor.
D) supplier.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Application
50) If Ben & Jerry's sales for 2016 were $200,000 and the entire ice cream market had sales of $2,000,000 for 2016, what is Ben & Jerry's market share?
A) 10%
B) 9%
C) 1%
D) 10
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
51) Which is a secondary competitor for Ben & Jerry's Ice Cream?
A) Frozen yogurt
B) Cold Stone Creamery
C) Baskin-Robbins
D) Halo Top ice cream
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Analysis
52) Who is NOT an intermediary for Ben & Jerry's ice cream?
A) A dairy supplier
B) A marketing team that designs product labels
C) A certified public accounting (CPA) firm that provides audit services
D) A trucking company that transports the product
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Analysis
53) Which is an intermediary for Ben & Jerry's Ice Cream?
A) A trucking company that transports the product
B) A dairy supplier
C) An ice cream carton supplier
D) A chocolate supplier
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Analysis
54) Who is included in the publics of the ice cream market?
A) Investors in a specific ice cream brand
B) Cashier at the local grocery store selling ice cream
C) Employee at the plant where the ice cream is made
D) Truck driver transporting the ice cream to the stores to be sold
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Analysis
55) Who is NOT included in the publics of the ice cream market?
A) Cashier at the local grocery store selling ice cream
B) Investors in a specific ice cream brand
C) Consumers of the product
D) Government employees
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Analysis
56) Which represents an intermediary relationship?
A) A private equity firm has invested in a logistics company.
B) A logistics company purchases truck tires from Goodyear.
C) A bank provides a loan to an individual purchasing a car.
D) A small bank uses an outsourced human resources company for its HR needs.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Application
57) Now that some grocery stores offer a space for dining in, such as Whole Foods, they've partially transitioned from ________ to ________ of restaurants.
A) primary competitors; secondary competitors
B) suppliers; primary competitors
C) suppliers; unexpected competitors
D) secondary competitors; primary competitors
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Analysis
58) Which is an example of an intermediary for Nike?
A) A maker of rubber that can be used in shoes
B) A producer of thread that can be used for laces
C) Facebook selling add space to Nike on their website
D) A lobbyist group that helps Nike get tax breaks for opening up a store in a specific part of town
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Analysis
59) What is the MOST important element of the micro-environment?
A) Company
B) Publics
C) Suppliers
D) Customers
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Analysis
60) Apple's relationship with Samsung in the cell phone space is an example of
A) dual suppliers.
B) joint venture.
C) primary competitors.
D) unexpected competitors.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Analysis
61) As a marketer considers the micro-environment, having strong brands that customers value fits into which component?
A) Market
B) Intermediaries
C) Company
D) Competitors
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
62) The marketer will often seek growth in the kind of market characterized by rapid change without stable customers or markets known as
A) erupting markets.
B) dynamic markets.
C) chaotic markets.
D) evolving markets.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
63) Market share is calculated by
A) dividing the sales of the firm's brand by combined sales of its brand and competitors' similar products.
B) dividing the total sales of similar products by total domestic spending.
C) dividing the sales of a firm's brand by the next highest sales of competitors' products.
D) dividing a consumer's annual purchase of a brand by his or her total spending on similar products.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
64) As a marketer, you are looking at, among other things, what the firm needs to make its products and bring it to market and those who will buy the product. Which element of the micro-environment is considered most important as the exchange partner with different wants and needs?
A) Competitors
B) Customers
C) Suppliers
D) Intermediaries
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
65) The class of customers who buy products but have no intention of using the products for themselves are known as
A) hoarders.
B) resellers.
C) opportunists.
D) arbitrageurs.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
66) You are responsible for marketing movies for a cinema chain. In addition to monitoring what other cinema chains are doing, you need to look at other forms of entertainment that are considered to be
A) primary competitors.
B) competitive threats.
C) unexpected competitors.
D) secondary competitors.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
67) The Chief Marketing Officer (CMO) has looked at a draft of your plan for the launch of a new product. While generally satisfied, she says, "You've shown good strong reasons for new customers to buy our new product, but we can't consider this plan in a vacuum." You need more detailed analysis and planning on which element of the micro-environment to address her specific concerns?
A) Competitors
B) Customers
C) Company
D) Intermediaries
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Communication
Standard 2: Bloom's || Application
68) Beth owns and operates a garden store focusing on plants native to her region. Though she knows she needs to monitor all kinds of brick-and-mortar and online companies selling plants, she feels most concerned about other garden stores within driving distance. These stores would be considered her
A) retail competitors.
B) primary competitors.
C) secondary competitors.
D) unexpected competitors.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
69) Companies can enhance their marketing goals for strategic advantage and exercise significant control through careful selection of its
A) suppliers.
B) salesforce.
C) competitors.
D) publics.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
70) Which of the following is NOT one of the criteria a firm would use in evaluating suppliers?
A) Supplier firm ownership
B) Additional benefits
C) Sharing goals
D) Shared values
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
71) When firms use other firms to perform tasks that could otherwise be done by the company itself, such as providing logistics or marketing research, they are demonstrating the importance of what part of the micro-environment?
A) The company
B) Intermediaries
C) Suppliers
D) Competitors
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
72) Josh is a newly hired marketing assistant, and his boss is discussing the micro-environment of his new firm. She notes that the advertising agency is an intermediary. Why would she classify the agency as an intermediary?
A) "Intermediary" is the same as "supplier," and she could have used either term.
B) Intermediaries help connect the company to the customer.
C) The agency provides a service not a product used in the firm.
D) The firm has more control over an intermediary than a supplier.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Analysis
73) As technology has given consumers and potential consumers access to information about firms, many firms have felt increasingly vulnerable to misinformation as well as information to facilitate purchases. The micro-environment element that includes groups that have an interest in the firm but who are not directly related are known as
A) third parties.
B) indirect suppliers.
C) publics.
D) intermediaries.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
74) Which of the micro-environment components is least under the marketer's control or direct influence?
A) Intermediaries
B) Suppliers
C) Company
D) Publics
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
75) What is the best similarity between established and emerging markets?
A) The rate of change and the predictability of the market are similar.
B) The amount of risk inherent in market competition is similar.
C) Opportunity levels are extreme.
D) Customers demand the product or service.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Analysis
76) Niha goes to her local Kroger supermarket to purchase Frosted Flakes, her favorite cereal. Niha purchases Raisin Bran instead. Which of the following statements most accurately describes the micro-environment in this scenario?
A) Niha is the end customer. Kroger is the established market. Raisin Bran is a secondary competitor.
B) Niha is the end customer. Kroger is the reseller. Raisin Bran is a primary competitor.
C) Niha is a supplier. Kroger is an intermediary. Frosted Flakes is an established market. Raisin Bran is an emerging market.
D) Niha is a public. Kroger is a reseller. Frosted Flakes and Raisin Bran are unexpected competitors.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
77) The Truth in Advertising organization has issued several complaints about specific companies erroneously using "Made in the USA" marketing claims. In this regard, the Truth in Advertising organization is considered a(n)
A) public.
B) intermediary.
C) market.
D) unexpected competitor.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
78) You live in New England and are considering a trip to California. You monitor prices on your favorite airline, Delta, and on Southwest. In the end you decide to rent a car from Hertz and drive to your California destination. Which of the following statements most accurately describes the micro-environment in this scenario?
A) Delta and Southwest are primary competitors. Hertz is a secondary competitor.
B) Delta and Southwest are primary competitors. Hertz is an unexpected competitor.
C) Delta is a primary competitor. Southwest and Hertz are secondary competitors.
D) Delta is a primary competitor. Southwest is a secondary competitor. Hertz is an unexpected competitor.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
79) Which of the following statements accurately describes the micro-environment?
A) Market share is the total sales in a market divided by the sales of one brand.
B) Customers significantly impact an exchange because different customers want different things from the exchange.
C) Companies are increasingly choosing suppliers with different marketing goals, which creates strategic advantages versus the competition.
D) Investors are the most important element because they have an immediate role in the business.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Analysis
80) Ben's Burritos advertises the benefits of clean eating. The company purchases its pork from farmers who follow strict guidelines regarding the feeding and raising of livestock. It even ceased selling pork products when one of the farms was found to be in violation of these guidelines. Which micro-environment element does the farm represent in this scenario?
A) Intermediary
B) Public
C) Supplier
D) Established market
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Analysis
81) Educational institutions, as well as companies, face stiff competition. The University of Florida and Florida State University, who target the same students, would be considered
A) educational competition.
B) primary competition.
C) intense competition.
D) secondary competition.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
82) Which of the following is NOT a type of competition a company needs to be aware of?
A) Unexpected competition
B) Primary competition
C) Secondary competition
D) Dominant competition
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Comprehension
83) TOMS Shoes' decision regarding who they will use as a supplier can have an impact on which of the following?
A) Enhancing the company's marketing goal
B) Reduction in the cost of operating
C) Discounts received because of relationships built
D) Special benefits employees receive
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Analysis
84) Which of the following would serve as an intermediary who provides marketing support for the company?
A) Advertising agencies
B) Media agencies
C) Production managers
D) Marketing managers
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
85) Which of the following best describes the concept of a market?
A) Companies persuading consumers to make certain purchases
B) A population of consumers with a desire to buy a particular product
C) Consumers willing to engage in commerce with various companies
D) Buyers and sellers interested in making similar exchanges
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
86) Jeff Bezos is the largest individual stockholder of Amazon.com. He is also the owner of The Washington Post newspaper. The Washington Post has often been critical of the Trump administration. As a result, many groups that support the Trump administration transfer negative feelings about The Washington Post toward Amazon and share these feelings online and in print. Which micro-environmental force is coming into play here?
A) Company
B) Customers
C) Intermediaries
D) Publics
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
87) You're the chief marketing officer of Bombardier. One of your primary product lines is light rail systems for municipalities. In assessing the environment, you're keenly aware of the development and diffusion of autonomous (self-driving) vehicles. You would view them as which class of competitor?
A) Unexpected competitor
B) Secondary competitor
C) Primary competitor
D) Non-competitor
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
88) Nike ran a series of commercials featuring Colin Kaepernick, whom many consider a divisive figure as a result of his kneeling in protest during the playing of the national anthem. Many outraged customers posted videos of them burning Nike gear and swearing they'd never buy from the company again. The price of Nike's stock dropped; however, soon recovered to previous levels. What was the primary environmental force that came into play relative to their stock price?
A) Customers
B) Social/cultural
C) Publics
D) Economic
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Analysis
89) Which micro-environmental force would have the greatest likelihood of being leveraged by a marketer to yield a competitive advantage?
A) Company
B) Customers
C) Suppliers
D) Intermediaries
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
90) During a pandemic like COVID-19 when certain categories of products such as tissues, disinfectants, cleaning supplies, and so on are in short supply, what is the most likely impact on long-term brand loyalty?
A) Positive — Consumers will be worried about the quality of unknown substitutes and question their efficacy.
B) Negative — Consumers will be forced to use alternative brands and recognize that they perform equally well.
C) Neutral — When supply chains are no longer disrupted, consumers will return to their preferred brand.
D) It's impossible to predict and none of the options above is more likely than another to occur.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
91) Which of the following is MOST correct?
A) The automobile industry is an established market in the United States and an evolving market in Japan.
B) The automobile industry is an established market in Germany and an evolving market in Cuba.
C) The automobile industry is an established market in the United States and an evolving market in Germany.
D) The automobile industry is an established market in Germany and an evolving market in the United States.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Evaluation
92) Cell phones have evolved from a ________ to a ________ for computers.
A) supplier; market
B) competitor; supplier
C) competitor; market
D) None of the above
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Evaluation
93) Acting as a(n) ________ is a major way Facebook makes money.
A) supplier
B) intermediary
C) reseller
D) None of the above
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Evaluation
94) Market share may be difficult to determine and may not be useful at all if what kind of competitors begin attracting customers?
A) Alpha competitors
B) Primary competitors
C) Secondary competitors
D) Unexpected competitors
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Analysis
95) You are the marketing manager for an upscale banquet and reception hall so popular that events were booked years in advance. A new reception hall has negatively affected your sales. Just as you begin to formulate a strategy to better compete, a nationwide pandemic begins. The governor mandates mask wearing and social distancing. One of your most frequent customers requests that her daughter's wedding reception continue as planned–without regard to government regulations. She threatens to move her reception to your competitor's venue if you do not comply. Which of the following represents the best course of action?
A) You know that customers are the most important element of the marketing environment and you want to keep this customer's business going forward. Since you can control your company, but not government regulations, you grant the customer's request.
B) You understand that the pandemic has turned the reception business into an evolving market–one with opportunities, but a great amount of risk. You hold firm in the need to follow government regulations. If the customer moves her business to another venue, you view it as an opportunity to create new uses for your venue.
C) You know that you cannot control government regulations, so masks and social distancing are non-negotiable. But you can control your company, so you attempt to work out an agreeable situation with this highly valued customer. You want her to view your venue as superior to that of your competition.
D) You deny your customer's request because government regulations are out of your control. You focus on what you can control–marketing your venue versus those of your competitors. You even consider potential unexpected competitors like virtual receptions.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Evaluation
96) You work for a global consumer products firm and oversee a line of laundry detergents. Your best-selling product has come under scrutiny for its new pod design–colorful detergent wrapped in a disposable film–that can look like candy to small children. Ingestion could result in death. Recently, a national television program devoted a 20-minute segment to interviews with concerned parents. You know that your current product packaging is childproof and contains warnings about keeping it out of reach of children. What is the best way to respond to this situation?
A) Since your product packaging meets federal safety guidelines and since product sales are high, you ignore the recent outcry. You can only control your product and your company, not how people use it.
B) Since you value your customers, you create a series of advertisements extolling the safety features of your current product packaging and reminding customers to keep chemicals stored safely. You can only control your product and your company and influence how people use it.
C) Since you value your customers and understand that consumer groups have influence, you instigate corporate discussions about discontinuing detergent pods. You can only control your product and company.
D) Since you value your customers, understand that consumer groups have influence, and manage the best-selling detergent, you create new, safer product packaging. You also create a series of advertisements extolling these features and reminding customers to store all chemicals safely. You can only control your product and your company and influence how people use it.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Evaluation
97) Under which condition is an unexpected competitor most likely to introduce a new business model that disrupts the market of a strong and established firm?
A) When the established firm loses focus and no longer delivers a discernable value to its existing customers
B) When environmental forces affecting the firm's customers change the primary benefits that are important to them
C) When a large segment of the firm's current customers would prefer a different set of benefits but they're not available elsewhere
D) When economic factors raise costs to the point where the value equation is no longer positive
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Synthesis
98) Which term is most applicable to couples living in households as unmarried partners?
A) Cohabitation
B) End consumers
C) Publics
D) Resellers
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Knowledge
99) Which of the following is NOT one of the four basic rights articulated in the Consumer Bill of Rights?
A) The right to be informed
B) The right to safety
C) The right to be heard
D) The right to privacy
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Knowledge
100) Which of the following is NOT one of the areas on which the Federal Trade Commission focuses?
A) Misleading advertising
B) Privacy issues
C) Keeping competition fair
D) Internet usage by companies
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Knowledge
101) Unless you are marketing necessities like rent, utilities and transportation, which is your major concern as a marketer?
A) Gross income
B) Net income
C) Disposable income
D) Discretionary income
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Knowledge
102) If you borrow money, you will have to repay more than the amount you initially borrowed due to
A) inflation.
B) interest.
C) time-value of money.
D) federal regulations.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Knowledge
103) Potential customers can be overwhelmed at the amount of information they can get on a product even though it is easier to find the product and buy it if they choose. This is an example of what part of the macro-environment?
A) Government concerns about privacy
B) Changing household patterns
C) The paradox of technology
D) The shift in values
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Communication
Standard 2: Bloom's || Knowledge
104) Which of the following terms refers to the measurement of the sustained increase in prices for the same item over time?
A) Sustainability
B) Inflation
C) Interest rate
D) Wealth
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Communication
Standard 2: Bloom's || Knowledge
105) Which of the following is a law that protects customers from companies, giving them the rights to information, safety, choice, and voice?
A) Consumer Product Safety Commission
B) Federal Trade Commission
C) Consumer Bill of Rights
D) Food and Drug Administration
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Communication
Standard 2: Bloom's || Knowledge
106) What is the primary difference in the micro-environment versus the macro-environment?
A) Micro-environment is impacted by shareholders.
B) Macro-environment is influenced by public opinion.
C) Micro-environment is not impacted by public opinion.
D) Macro-environment is not controlled by the company.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Comprehension
107) The federal law requiring government buildings to use door levers rather than circular doorknobs was driven by what part of the macro-environment?
A) Regulatory and legal
B) Social and cultural
C) Technological
D) The Americans with Disabilities Act
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Comprehension
108) One of the most prominent issues associated with the technological environment is
A) the capability to integrate and leverage technology.
B) the ability to interact with customers more quickly.
C) the capacity to manage data and generate critical information.
D) the ability to keep a competitive distance from the competition.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Comprehension
109) The paradox of technology offers both negative and positive benefits to whom?
A) Customers and sellers
B) End customers and resellers
C) Primary and secondary customers
D) Loyal and luxury customers
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Comprehension
110) Patek Philippe is a luxury watchmaker who offers some watches that sell for a price of over $100,000. What category of income would be most relevant to them?
A) Gross income
B) Net income
C) Disposable income
D) Discretionary income
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Communication
Standard 2: Bloom's || Knowledge
111) Which of the following will increase sustainability?
A) Using solar power
B) Burning coal for power
C) NOT having recycling bins
D) Using all plastic products
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Diversity
Standard 2: Bloom's || Application
112) Many employers are trying to market the work/life balance of their work environment to potential employees; what component of the macro-environment are these employers focusing on?
A) Political/regulatory/legal
B) Technological
C) Economic/Financial
D) Social/Cultural
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Analysis
113) Which of the following will decrease sustainability?
A) Using solar power
B) Burning coal for power
C) Using recycling bins
D) Using biodegradable products
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Diversity
Standard 2: Bloom's || Application
114) Within the U.S. culture, the changing nature of the family means marketers must
A) adapt the marketing mix to focus on which changing consumer decision making area.
B) reinforce their attention on the population that is aging.
C) pay less attention to the growth in Hispanic and other cultural groups.
D) discount the importance of demographics in their analyses.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
115) Marketers have new challenges and opportunities with new and different holidays, different promotions, and new kinds of buying behaviors as part of what component of the social/culture element in the macro-environment?
A) Diversity
B) The changing nature of the family unit
C) Changing ethical and moral values
D) The aging of the generational cohorts
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
116) In recent years, the political, regulatory and legal environment has affected every element of the marketing mix. Which of the following is NOT a consequence of this changing environment?
A) Consumers' rights have expanded affecting virtually every area of marketing.
B) Compliance has become more expensive.
C) The market is more orderly and efficient.
D) The marketer must be more attuned to conflicting regulations.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
117) David was given the responsibility of tracking changes in federal regulations that would affect the marketing efforts in his firm. Which of these agencies should be one he'd need to track for marketing implications?
A) The Alcohol, Tobacco and Firearms Bureau
B) The Food and Drug Administration
C) The Centers for Disease Control
D) The National Health Institute
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
118) If you are frustrated at making only enough money to pay your basic living expenses with little or no money left over to pay for fun, you are frustrated at your lack of
A) fixed income.
B) net income.
C) disposable income.
D) discretionary income
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
119) A firm is considering locations for a new manufacturing facility to meet market demands and has been reviewing the macro-environment as it considers how to market the newly manufactured products. The firm has found a location with a good potential workforce and good transportation access. The concern is that the new facility would require a great deal of water, which might affect farmers and others depending on a good supply of water. What element of the macro-environment do they need to address?
A) Political and regulatory
B) Sustainability
C) Demographics
D) Technology
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
120) Why would marketers advocate for sustainability as a company approach?
A) It's a good way to avoid government scrutiny and monitoring.
B) It's a good tool to help in recruiting Baby Boomer talent.
C) It's a good way to connect with customers.
D) It's a good way to stay ahead of competitors.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
121) Marketers include technology in their assessment of the macro-environment because
A) they depend on their smart phones for research and communications.
B) they are looking for expanded opportunities for marketing.
C) they see social media as replacing all other marketing efforts in the near future.
D) they see their competitors using newer technologies.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Technology
Standard 2: Bloom's || Application
122) Technology has enabled companies to collect vast amounts of data about customers and transactions. If you were a marketer, which of the following is NOT one of the reasons why you'd want that data, even purchasing the data?
A) They can become data resellers.
B) They can learn about consumer preferences.
C) They can develop insights on how goods are purchased.
D) They can use the data to design new products and services.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
123) Marketers cannot control, and often cannot even influence, elements in the macro-environment, so why bother collecting data and analyzing the data for insights?
A) Federal and state laws require extensive record-keeping.
B) The American Marketing Association mandates collection of data for professionalism in marketing.
C) Marketers are looking for ways to create competitive advantages.
D) Consumers expect firms to understand their problems and individual needs.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Communication
Standard 2: Bloom's || Application
124) Which of the following statements accurately describes the macro-environment?
A) Laws and restrictions on elements of the marketing mix have been decreasing slowly in recent years.
B) Despite public alarm, the disparity in wealth has had little impact on basic marketing.
C) The paradox of technology means that specific technologies become less valuable the more people use it.
D) Trends related to customers are the most important element.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Analysis
125) Sarita was born in 1991. Which of the following statements most likely describes her?
A) She is tech savvy and not brand loyal.
B) She seeks to work long hours at her corporate job and expects little time off.
C) She is frugal and only purchases things with perceived value.
D) She purchases goods and services almost to excess.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Analysis
126) Which of the following statements accurately describes the social/cultural element of the macro-environment?
A) Two important trends are the aging of the population and the migration of people from urban centers to rural areas.
B) The Silent Generation grew up wealthier than previous generations.
C) There is increasing diversity in ethnic backgrounds in the United States.
D) Couples are cohabitating longer and having children earlier than in the last decade.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Analysis
127) A popular video conferencing site was caught providing customers' personal and professional information to other users and to outside companies, all without the customers' consent. Which regulatory agency is tasked with monitoring issues like the one in this scenario?
A) Consumer Product Safety Commission
B) Federal Trade Commission
C) Food and Drug Administration
D) Department of Commerce
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
128) What is the best similarity between a developing economy and a mature economy?
A) The availability of both products and services
B) The establishment of financial institutions
C) The agricultural focus
D) The amount of stability and inherent risk for marketers
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Analysis
129) Nike increasingly is focused on using renewable energy to power its facilities, using recycled polyester, reducing its water and chemical usage, and prohibiting its ships from entering the Arctic Ocean. On which of the following macro-environment elements is Nike focused?
A) Technological
B) Natural/environmental
C) Political/regulatory/legal
D) Social/cultural
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
130) Companies gather data regarding customers' age, gender, and income. Understanding these demographic trends falls under which part of the external environment?
A) Social and cultural
B) Economic
C) Legal and political
D) Technological
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
131) Understanding different cultural backgrounds can help companies determine
A) customers' preferences to advertising tactics.
B) customers' responses to marketing efforts.
C) customers' desires to make certain purchase decisions.
D) customers' appreciation of a company's societal orientation.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Analysis
132) Which part of the external environment do marketing decisions constantly need to be re-evaluated and adjusted to during a pandemic?
A) Natural
B) Technological
C) Demographic
D) Economic
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
133) Consumer goods companies are working to reduce their dependency on the use of plastic in the packaging of their products. This is an example of their attempt to embrace the environmental concept of
A) sustainability.
B) economic responsibility.
C) consumer sensitivity.
D) social awareness.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
134) UPS's and FedEx's continuous upgrades of their package tracking systems are an example of what part of the external environment?
A) Economic
B) Financial
C) Technological
D) Distribution
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
135) Why is it important for marketers to understand the difference between income and wealth?
A) It makes a difference in marketing opportunities.
B) It helps determine the type of products to be sold.
C) It assists in analyzing the purchase behavior of customers.
D) It enables companies to better target certain individuals.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Analysis
136) Airbnb can be viewed as what type of competitor to hotels?
A) Unexpected
B) Secondary
C) Evolving
D) Primary
Learning Objective: 3.1 Discuss the two major components of the marketing environment–the micro and the macro environments and the key distinction between the two for marketers.
Section Reference: The Marketing Environment
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
137) In some cases, one environmental force directly impacts another. An example is the effect that COVID-19 had on the world economy. This is an example of what?
A) Micro-environment force > micro-environment force
B) Micro-environment force > macro-environment force
C) Macro-environment force > macro-environment force
D) Macro-environment force > micro-environment force
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
138) The percentage of married households in the United States has declined to less than 50% from a high of 72% in 1960. As a result, average household income continues to decline. This is primarily a reflection of which environmental force?
A) Social/cultural
B) Economic
C) Natural/environmental
D) Political/regulatory/legal
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
139) Advances in technology have led to the creation of extensive databases containing large amounts of information on individual consumers. Consumers are becoming increasingly sensitive to this fact and concerned about privacy. Which environmental force is most likely to have an impact in this arena?
A) Technology
B) Social/cultural
C) Company
D) Political/regulatory/legal
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
140) A recent study by McKinsey and Company estimates that up to 800 million jobs worldwide may disappear due to the continued development and adoption of artificial intelligence (AI), robotics, additive manufacturing (AM — 3D printing) and other innovations. This exemplifies what?
A) An economic force
B) A company-related force
C) The paradox of technology
D) A natural force
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
141) Which macro-environmental force was shown, globally, to have the greatest impact on slowing the spread of the COVID-19 virus?
A) Social/cultural
B) Political/regulatory/legal
C) Economic
D) Natural/environmental
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
142) Which of the following examples of corporate policy best reflects the natural/environmental concept of sustainability?
A) Amazon.com announcing plans to neutralize their carbon footprint by 2040
B) Apple providing free recycling for its products
C) Starbucks eliminating plastic straws in all their outlets
D) McDonald's decision to use wild-caught sustainable fish species for their Filet-O-Fish sandwiches
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Application
143) Which of the following is NOT an example of a company reacting to changes in the micro-environment?
A) Ben & Jerry's recently undertook certain cost-cutting measures due to budget constraints and have begun using lower quality ingredients.
B) After completing a survey of consumer tastes, Burger King began to offer an alternative to McDonald's Big Mac.
C) Relative to 30 years ago, Tide began featuring more commercials with interracial couples.
D) Nike signed a contract with a new rubber supplier and was able to produce more durable shoes for the same price.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Diversity
Standard 2: Bloom's || Evaluation
144) Which of the following would a company probably have the least amount of influence over?
A) A supplier raising prices
B) The local government introducing new taxes
C) A competitor lowering prices
D) A company would likely have equal influence over all of the above.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Evaluation
145) Your firm manufacturers small household appliances, and you see that with growing sophistication in the U.S. domestic market, you should turn to other countries to extend the life of these products with limited appeal domestically. There are large populations in subsistence economies who don't have anything like your appliances, and your senior management has asked you to explore going into these markets. You are very uncomfortable with this approach. Why?
A) There are too many legal issues in international commerce.
B) You don't speak the languages of any of these countries.
C) There are limited opportunities beyond the agricultural and basic manufacturing in these countries.
D) You know these countries have different electrical currents, and you would have to adapt your products.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Evaluation
146) Your roommate is studying IT, and she sees you are looking at Technology in the macro-environmental analysis. She asks, "Why would marketers need to worry about technology? That's what IT is for." How can you succinctly respond in the context of the macro-environment?
A) Marketers can't leave technology to IT.
B) Marketing requires a comprehensive view of everything that goes on in a market, and technology is one part of that.
C) Marketers need to market technology in many companies.
D) Marketers must become experts in technology as it is the most important part of the marketing environment.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Technology
Standard 2: Bloom's || Synthesis
147) What is the best synthesis of culture and marketing environments?
A) They can be controlled by individuals or like-minded groups.
B) They are quick to form and are malleable.
C) They are influenced by both internal and external elements.
D) They must be evaluated on a regular basis.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Synthesis
148) Your friend Dobin has been hired as a donor engagement officer for his college alma mater. He tells you that he is planning to focus most of his energy on a group of alumni who work for a very prestigious law firm, are well paid, and live extravagant lifestyles–exotic vacations, expensive cars, boat purchases, and so on. What is the best advice to give him?
A) Tell Dobin to move ahead with his plan soon, before his target group spends any more of their net income on luxury items that they might not be able to afford.
B) Remind Dobin that his target group seems to be spending much of their discretionary income and that other, less flashy, alumni actually may be wealthier and in better positions to donate significant funds.
C) Suggest that Dobin consider other alumni that have similar gross income potential, since they would fall into the same wealth category as his target group.
D) Remind Dobin that interest rates and inflation play a part in one's ability to donate part of one's disposable income. He needs to time his requests when the market is most agreeable.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Evaluation
149) Why is it important for marketers to study the age of consumers?
A) There is more value found in younger generations.
B) The older populations have more spending power.
C) Different generations have different views based on their experiences.
D) Diversity in populations offer unique marketing opportunities.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Evaluation
150) From a marketing perspective, the concept of income helps marketing managers
A) distinguish the distribution of wealth that a customer can use when making purchases.
B) differentiate between money a person receives and money a person has available to spend.
C) dictate the frequency of purchases that customers can make.
D) designate the quality of service companies are willing to give to certain customers.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Analytic
Standard 2: Bloom's || Evaluation
151) Your textbook points out that an important cultural trend affecting marketing is the shift in diversity. The three major components are: increased diversity in ethnic backgrounds, the nature of the family unit, a shift in values to consider ethical and moral issues more important. Which of the following is most likely to be a result of this trend?
A) We'll experience ever-increasing market segmentation.
B) We'll experience increasing consolidation among large firms as those successful in adapting to these trends flourish.
C) We'll experience cultural assimilation as consumers adapt by becoming more homogenous.
D) Whites, as a group, will become increasingly less important to marketers.
Learning Objective: 3.3 Identify the five main components of the macro-environment.
Section Reference: The Macro-Environment (SPENT)
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Synthesis
152) RadBoards is a longboard manufacturer that currently has $2 billion of revenue in a $4 billion market with dozens of competitors. However, RadBoards is losing money each year. Which piece of the marketing environment (micro or macro) should RadBoards focus on to become profitable and why?
Learning Objective: 3.2 Identify the seven main components of the micro-environment.; 3.3 Identify the five main components of the macro-environment.
Section Reference: The Micro-Environment; The Macro-Environment (SPENT)
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Analysis
153) The utility of the cellphone has drastically increased in the last 20 years. Discuss three markets in which cellphones have went from being a non-participant to being one of the three types of competitors.
Learning Objective: 3.2 Identify the seven main components of the micro-environment.
Section Reference: The Micro-Environment
Standard 1: AACSB || Reflective Thinking
Standard 2: Bloom's || Evaluation
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