Chapter 3 Scanning The Marketing Environment Full Test Bank - Answer Key + Test Bank | Marketing 13th Edition by Kerin and Hartley by Roger A. Kerin, Steven W. Hartley. DOCX document preview.

Chapter 3 Scanning The Marketing Environment Full Test Bank

Chapter 03

Scanning the Marketing Environment

 


Multiple Choice Questions
 

1.

Facebook has approximately what fraction of the world's population as customers? 
 

A. 

one-half

B. 

one-third

C. 

one-quarter

D. 

one-fifth

E. 

one-seventh

 

2.

All of the following statements about the environmental forces that have influenced Facebook are true except 
 

A. 

the Federal Trade Commission (FTC) has a laissez-faire policy of not interfering with the development and marketing of Facebook and other social media websites.

B. 

technological advances in data storage, server speed, and software integration have made Facebook increasingly fast and convenient.

C. 

its rivalry with Google, Twitter, and Snapchat; the ability of users to easily switch platforms; and the constant threat of new social networks targeted at specific interest groups encourage rapid expansion.

D. 

the cost of wireless connectivity and smartphones rapidly declined and Internet access expanded, which increasingly made social networking affordable for more people.

E. 

people increasingly look for new ways to communicate, obtain information, and offer opinions.

 

3.

Environmental scanning refers to 
 

A. 

assessing any possible negative impact a firm's activities might have on the local ecology.

B. 

continually acquiring information on events occurring outside the organization to identify and interpret potential trends.

C. 

setting up a regular schedule to assess the performance of different divisions within a firm.

D. 

initiating an internal talent search to identify employees who can think "outside the box" to generate solutions to marketing problems caused by changes in the marketing environment.

E. 

requiring all employees to spend time outside the office to avoid the "ivory tower" syndrome.

 

4.

The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is referred to as 
 

A. 

significant trend analysis.

B. 

organizational scanning.

C. 

environmental scanning.

D. 

a SWOT analysis.

E. 

marketing intelligence.

 

5.

Environmental trends arise from all of the following forces except 
 

A. 

competitive.

B. 

economic.

C. 

regulatory.

D. 

geographical.

E. 

social.

 

6.

The purpose of environmental scanning is to 
 

A. 

only identify trends in the marketplace.

B. 

only interpret trends in the marketplace.

C. 

only forecast trends in the marketplace.

D. 

identify, interpret, and forecast trends in the marketplace.

E. 

only identify and interpret trends in the marketplace.

 

7.

Which of the following statements regarding environmental scanning is the most accurate? 
 

A. 

Environmental scanning changes the marketing environment.

B. 

Environmental scanning identifies and interprets potential trends.

C. 

Environmental scanning should be done at least every five years.

D. 

Environmental scanning focuses primarily on ecological factors.

E. 

There is too much information generated from environmental scanning to make it viable for small firms.

 

8.

A firm conducting an environmental scan of the marketplace might uncover key __________ such as the growing popularity of video bloggers and the increasing mobility and connectivity of consumers. 
 

A. 

profits

B. 

responsibilities

C. 

idealisms

D. 

codes

E. 

trends

 

9.

Starbucks entered a partnership with Keurig Green Mountain to sell K-Cup single-serving coffee packs. Because Starbucks __________, it was prepared for this shift in its marketing environment. 
 

A. 

optimized its distribution by adding local outlets in grocery stores

B. 

noticed the change in the demographics of coffee and tea drinkers in general

C. 

added more in-store displays

D. 

shifted funds from product development to advertising

E. 

tracked, as part of its ongoing environmental scanning activities, the percentage of households with single cup brewers

 

10.

As the director of marketing for a local hospital that specializes in caring for limited mobility patients and related health issues, you must conduct an environmental scan to help create a five-year marketing plan for the hospital. Which of the following environmental trends should you consider to be the most important? 
 

A. 

The number of people in the geographic area who are 65 years or older will increase by 23 percent during the next five years.

B. 

By the year 2030, baby boomers will all be 65 or older.

C. 

The local community has seen a rise in dual-income households.

D. 

By the year 2025, robotics will play a major role in surgical procedures.

E. 

Twenty percent of the local population is of Hispanic origin.

 

11.

A high-fashion boutique sells top-of-the-line women's clothing and accessories. The keys to its success include knowing customers' changing tastes and providing something different than other retailers. In addition, because of the high value of the merchandise, the boutique's management is investing in the use of computerized inventory controls and sales order processing. The least important environmental force to the boutique at this time is likely to be 
 

A. 

economic.

B. 

competitive.

C. 

technological.

D. 

social.

E. 

regulatory.

 

12.

Local newspaper readership has declined significantly in recent years. Not only are traditional newspapers losing subscribers, they are also losing advertisers. To combat these trends, many newspaper publishers now offer online versions of their printed newspapers. This is most likely a response to which environmental force? 
 

A. 

economic, since few can afford a newspaper today

B. 

competitive, resulting from new, smaller local newspapers that are flourishing

C. 

technological, since high-speed printing presses have become more easy to use

D. 

social, resulting from changing consumer preferences for information delivered online

E. 

regulatory, since the government provides tax incentives for paper-based products

 

13.

A growing trend to "Buy American" may encourage U.S. automakers to increase political pressure on Washington to pass legislation for more restrictive quotas on Japanese car imports. In addition, a decline in the value of the U.S. dollar would be instrumental in Toyota's decision to build a manufacturing plant in the United States instead of continuing to export cars from Japan. If Toyota builds the plant, its decision would reflect 
 

A. 

a reactive strategy that would impact the competitive environmental force.

B. 

a proactive maneuver to manipulate and impact the social environmental force.

C. 

a positive result from regulatory and economic environmental forces.

D. 

a positive response to a technological environmental force.

E. 

a negative impact as a result of adverse competitive, regulatory, and technological environmental forces.

 

14.

Many large consulting firms are beginning to sponsor "women-only" networking events. The purpose of these events is to offer an opportunity for women in management to network with other businesswomen, either as clients, mentors, or protégés. This is an example of which environmental force? 
 

A. 

social

B. 

economic

C. 

technological

D. 

competitive

E. 

regulatory

 

15.

A proposed law in New Jersey would ban the use of tanning beds by anyone under the age of 18. This restriction would be an example of which environmental force? 
 

A. 

social

B. 

economic

C. 

technological

D. 

competitive

E. 

regulatory

 

16.

Using smartphones, one can watch the news, shoot videos, browse the Internet, take pictures, and listen to music. Improved features are added with each smartphone introduced by Apple, Samsung, LG, and others. As a result, customers often want to replace their existing smartphones with new models or brands every two years when their contracts expire. This increase in demand is due mostly to changes in __________, an environmental force. 
 

A. 

competition

B. 

social culture

C. 

technology

D. 

regulations

E. 

the economy

 

17.

Pending federal legislation will require all online retailers to collect state sales taxes from customers. This would affect online sellers such as Virtual Vineyards, which now collects state sales taxes only from customers who reside in California, its home state. This pending legislation would be an example of which environmental force? 
 

A. 

social

B. 

economic

C. 

technological

D. 

competitive

E. 

regulatory

 

18.

The set of environmental forces that consists of the demographic characteristics of the population and its culture is referred to as 
 

A. 

social forces.

B. 

economic forces.

C. 

consumer forces.

D. 

cultural forces.

E. 

market forces.

 

19.

The demographic characteristics of the population and its culture are referred to as 
 

A. 

attitudinal forces.

B. 

psychographic forces.

C. 

social forces.

D. 

cultural forces.

E. 

market forces.

 

20.

The social forces in the environment include the __________ of the population and its culture. 
 

A. 

living standards

B. 

social classes

C. 

cohorts

D. 

ethics

E. 

demographic characteristics

 

21.

The social forces of the environment include the demographic characteristics of the population and its 
 

A. 

geographic locations.

B. 

social classes.

C. 

cohorts.

D. 

culture.

E. 

ethics.

 

22.

With a proper environmental scan, changes in the demographic characteristics of the population and its values can have a dramatic impact on 
 

A. 

the marketing concept era.

B. 

marketing tactics.

C. 

market share.

D. 

marketing metrics.

E. 

marketing strategy.

 

23.

Which of the following statements regarding social forces is most accurate? 
 

A. 

Social forces can have a dramatic impact on marketing strategy.

B. 

As a social force, consumer incomes have more impact on marketing strategy than demographics.

C. 

Social forces within an organization motivate employees to improve their productivity.

D. 

Social forces determine all of the other environmental forces that affect an organization.

E. 

Of all the environmental forces, social forces are the easiest for a marketer to manipulate.

 

24.

Which of the following would be identified as a social force in an environmental scan? 
 

A. 

a new consumer protection law

B. 

an increase in Asian immigration

C. 

an advanced technology is perfected

D. 

a decrease in consumer incomes

E. 

a new international firm exports to the United States

 

25.

Generation X consumers indicate they want online customer support; websites that are comprehensive, professional, and interactive; and advertising that is authentic, family-oriented, and unique. Generation X is also replacing baby boomers as the largest segment of business travelers. In response, American Airlines is offering travelers in-flight Wi-Fi, entertainment on demand, and personal power ports. This is an example of how __________ forces impact the marketing environment. 
 

A. 

economic

B. 

competitive

C. 

social

D. 

technological

E. 

regulatory

 

26.

An important social trend is the continued concern for health and well-being in the United States. This is most likely evidenced by 
 

A. 

the increased sales of Cigar Aficionado magazine.

B. 

Lay's Kettle Cooked potato chips, which have 40 percent less fat than regular potato chips.

C. 

the opening of more Starbucks coffee boutiques in supermarkets.

D. 

the upsizing of menu items at fast-food restaurants.

E. 

the introduction of tablet devices such as the iPad.

 

27.

Publishers were surprised by the dramatic success of the book Fifty Shades of Grey and believe that it will likely generate a fresh cycle of female-targeted romances packaged for the mainstream reader. This is an example of __________ force impacting the marketing environment. 
 

A. 

an economic

B. 

a competitive

C. 

a technological

D. 

a social

E. 

a regulatory

 

28.

Demographics refer to 
 

A. 

the description of a population according to its values or cultural beliefs.

B. 

an objective measurement of a person's likelihood to purchase a product or service.

C. 

the psychological profile of prospective consumers.

D. 

the density of a population in a geographic area.

E. 

the description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.

 

29.

The description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation is referred to as 
 

A. 

product group profiling.

B. 

demographics.

C. 

behavioral analysis.

D. 

psychographics.

E. 

statistical analysis.

 

30.

Demographic characteristics that describe a population include all of the following except 
 

A. 

income.

B. 

age.

C. 

occupation.

D. 

zip code.

E. 

ethnicity.

 

31.

More is a publication designed to appeal to women aged 40 and over. Demand for such magazines is an example of how changing __________ characteristics impact the marketing environment. 
 

A. 

cultural

B. 

behavioral

C. 

psychographic

D. 

occupational

E. 

demographic

 

32.

The most recent estimate indicates that the population of the world today is about 
 

A. 

5 billion.

B. 

6.3 billion.

C. 

7.3 billion.

D. 

7.9 billion.

E. 

9.5 billion.

 

33.

By 2050, the world's population is expected to be 
 

A. 

5 billion.

B. 

5.7 billion.

C. 

6.1 billion.

D. 

7.9 billion.

E. 

9.6 billion.

 

34.

The change in the growth of the world's population is called the 
 

A. 

population contraction.

B. 

population inversion.

C. 

population migration.

D. 

population explosion.

E. 

population eruption.

 

35.

The population explosion has occurred 
 

A. 

primarily in the developing countries of Latin America, Asia, and Africa.

B. 

evenly throughout the world.

C. 

primarily in the United States due to high birthrates and immigration.

D. 

primarily in the countries of the European Union due to high birthrates and immigration.

E. 

primarily in developed countries due to better economic, infrastructure, and health care conditions.

 

36.

Projections show that the population is 
 

A. 

growing in most developed countries.

B. 

declining in most developing countries.

C. 

decreasing in Africa.

D. 

increasing in Asia.

E. 

decreasing in Latin America.

 

37.

The country expected to have the largest population in 2050 is 
 

A. 

the United States.

B. 

India.

C. 

China.

D. 

Russia.

E. 

Brazil.

 

38.

Which of the following demographic trends has significant implications to global marketers? 
 

A. 

the declining populations in Latin American countries

B. 

the size of the markets in India and China

C. 

the tripling of the population of consumers under 40 years old

D. 

the decreasing interest in entrepreneurship in developing countries

E. 

the lack of savings of elderly populations in developed countries

 

39.

Studies of the __________ characteristics of the U.S. population suggest that it is becoming larger, older, and more diverse. 
 

A. 

cultural

B. 

psychographic

C. 

geographic

D. 

demographic

E. 

economic

 

40.

Generally, the U.S. population is becoming 
 

A. 

smaller, younger, and more diverse.

B. 

smaller, older, and more diverse.

C. 

larger, younger, and less diverse.

D. 

larger, younger, and more diverse.

E. 

larger, older, and more diverse.

 

41.

By 2030, the U.S. population is expected to exceed 
 

A. 

273 million.

B. 

314 million.

C. 

323 million.

D. 

359 million.

E. 

414 million.

 

42.

All of the following factors contribute significantly to the rate of change of a country's population except 
 

A. 

life expectancy (the average number of years a population lives from birth).

B. 

immigration (the number of people who enter a country for the purpose of permanent residence).

C. 

population density (defined as the total number of people per square mile/kilometer).

D. 

birthrate (the number of births during a specified time period).

E. 

death rate (the number of deaths during a specified time period).

 

43.

The generation of children born between 1946 and 1964 is referred to as 
 

A. 

baby busters.

B. 

millennials.

C. 

Generation Y.

D. 

baby boomers.

E. 

Generation X.

 

44.

Baby boomers can be defined as the generation born 
 

A. 

between 1918 and 1945.

B. 

between 1946 and 1964.

C. 

between 1965 and 1976.

D. 

between 1977 and 1994.

E. 

since 1995.

 

45.

Which of the following currently affects baby boomers, and thus those that market to them, in a significant way? 
 

A. 

They are beginning to have children.

B. 

They are getting their high school and college educations.

C. 

They are currently retiring or nearing retirement age.

D. 

They are just being born.

E. 

They are beginning their primary school educations.

 

46.

Prudential, a financial planning firm, offers retirement plans and wealth management advice. These products are most likely targeted toward which generational cohort? 
 

A. 

Generation X

B. 

baby busters

C. 

Generation Y

D. 

the greatest generation

E. 

baby boomers

 

47.

Olay, a cosmetics firm, offers anti-aging and restoration products targeted toward 
 

A. 

echo-boomers.

B. 

Generation Z.

C. 

Generation Y.

D. 

baby boomers.

E. 

baby busters.

 

48.

Ads appealing to interests such as retirement housing and financial planning are targeted at which generational cohort? 
 

A. 

echo-boomers

B. 

Generation Xers

C. 

Generation Yers

D. 

baby boomers

E. 

baby busters

 

49.

Generation X is defined as the generation of children born 
 

A. 

between 1946 and 1964.

B. 

between WWI and WWII.

C. 

between 1965 and 1976.

D. 

between 1977 and 1994.

E. 

since the millennium.

 

50.

Generation X is the label often given to 
 

A. 

persons born between 1965 and 1976.

B. 

persons 65 years old and older.

C. 

those who survived the Great Depression.

D. 

the "greatest generation" born between the baby boomer generation and their parents that were called Generation W, the World War II generation.

E. 

those people who were born since the millennium.

 

51.

The 50 million people of the population born between 1965 and 1976, also called the baby bust, refers to 
 

A. 

Generation X.

B. 

millennials.

C. 

Generation Y.

D. 

Generation Z.

E. 

baby boomers.

 

52.

The 50 million people born between 1965 and 1976, also called the __________, refers to Generation X. 
 

A. 

Generation Y

B. 

baby bust

C. 

millennials

D. 

baby boomers

E. 

Generation Z

 

53.

The generational cohort known as __________ was born during the baby bust era when the number of children born each year was declining. 
 

A. 

Generation Z

B. 

Generation Y

C. 

millennials

D. 

Generation X

E. 

baby boomers

 

54.

The name given to the generational cohort who are described as self-reliant, supportive of racial and ethnic diversity, and better educated than previous generations is 
 

A. 

Generation Z.

B. 

Generation Y.

C. 

millennials.

D. 

Generation X.

E. 

baby boomers.

 

55.

Generation X consumers are 
 

A. 

likely to rely on others.

B. 

authoritative decision makers.

C. 

very prone to extravagance.

D. 

generally supportive of racial and ethnic diversity.

E. 

poorly educated.

 

56.

Generation X 
 

A. 

is the least healthy generation since the 1940s.

B. 

accounts for the largest amount of consumer spending.

C. 

is the largest segment of business travelers.

D. 

is interested in distinctive, memorable, and personal experiences.

E. 

includes younger members known as millennials.

 

57.

In terms of business travel, for which generational cohort are ads regarding in-flight Wi-Fi and on-demand entertainment most likely trying to reach? 
 

A. 

Generation X

B. 

baby boomers

C. 

Generation Z

D. 

baby busters

E. 

Generation Y

 

58.

Americans born between 1977 and 1994 are referred to as 
 

A. 

Generation X.

B. 

baby boomers.

C. 

Generation Y.

D. 

baby busters.

E. 

Generation Z.

 

59.

Generation Y is defined as the generation of children born 
 

A. 

between WWI and WWII.

B. 

between 1946 and 1964.

C. 

between 1965 and 1976.

D. 

between 1977 and 1994.

E. 

since the millennium.

 

60.

Generation Y is sometimes referred to as 
 

A. 

echo-boomers.

B. 

baby boomers.

C. 

baby busters.

D. 

the downtrodden generation.

E. 

Generation 25.

 

61.

The generation of children born between 1977 and 1994 is sometimes referred to as 
 

A. 

echo busters.

B. 

baby busters.

C. 

the lost generation.

D. 

the baby boomerang.

E. 

the millennials.

 

62.

Members of Generation Y are most likely to influence 
 

A. 

children's designer clothing lines.

B. 

health care and insurance.

C. 

retirement plans.

D. 

video games.

E. 

automobile design.

 

63.

When compared to Generation X, members of Generation Y are most likely to influence 
 

A. 

children's designer clothing lines.

B. 

health care and insurance.

C. 

all forms of communication and networking.

D. 

retirement plans.

E. 

automobile design.

 

64.

Which generational cohort is an ad for a distinctive, memorable, and personal experience such as shark diving in Cape Town most likely trying to reach? 
 

A. 

Generation X

B. 

baby boomers

C. 

Generation Z

D. 

baby busters

E. 

Generation Y

 

65.

The Sierra Club is the oldest continuously operating environmental organization. By 2001, its growth had plateaued. To rekindle interest in the organization, its members elected a new 23-year-old president who promised to use MTV artists to create public service announcements about the organization targeting his generational cohort, who are members of 
 

A. 

Generation X.

B. 

Generation Y.

C. 

Generation Z.

D. 

baby busters.

E. 

baby boomers.

 

66.

Members of Generation Y, also known as __________, are interested in sustainability including sustainable campus communities. 
 

A. 

activists

B. 

sustainers

C. 

progressives

D. 

reformers

E. 

millennials

 

67.

Younger members of Generation Y are idealistic and eager to get started as a force for good. One way they hope to achieve their goal is through 
 

A. 

environmental responsibility.

B. 

political activism.

C. 

intergenerational dialogue.

D. 

fiscal conservatism.

E. 

educational reform.

 

68.

For millennials, "positive business" involvement means 
 

A. 

engaging in free market economics with fair but limited regulations to manage exchange relationships.

B. 

being part of a movement that balances the interests of shareholders, employees, and society.

C. 

exploiting a nation's natural resources for the betterment of its society.

D. 

seeking advanced jobs in agriculture that emphasize economies of scale in farming and ranching.

E. 

executing an aggressive strategy regarding oil and natural gas exploration to make the United States energy independent.

 

69.

All of the following statements are true except 
 

A. 

LEED stands for Leadership in Energy and Environmental Design.

B. 

today's college graduates now seek green jobs that involve some aspect of social responsibility.

C. 

colleges of business have yet to establish sustainability course electives and case studies.

D. 

many students want to be involved with organizations such as Net Impact to use business to improve the world.

E. 

millennials want to make a difference by making the world a better place.

 

70.

A blended family is 
 

A. 

the result of the decline in divorce in recent years.

B. 

a household with unmarried partners.

C. 

a typical outcome of increased cohabitation.

D. 

a family formed by merging two previously separated units into a single household.

E. 

households formed with unrelated individuals.

 

71.

In 2015, which racial or ethnic group had the greatest economic impact in the United States in terms of its buying power? 
 

A. 

Asian Americans

B. 

Hispanics

C. 

African Americans

D. 

American Indian and other native populations

E. 

Indian immigrants (from India)

 

72.

Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races are referred to as __________ marketing programs. 
 

A. 

panethnic

B. 

generational

C. 

cross-cultural

D. 

multicultural

E. 

regional

 

73.

Multicultural marketing refers to combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different 
 

A. 

races or ethnic groups.

B. 

nations.

C. 

religions.

D. 

generational cohorts.

E. 

genders.

 

74.

Advertising Age's Multicultural Agency of the Year, Alma creates advertising by "focusing the work on a deeper cultural knowledge, elevating the work beyond the clichés." For its clients, including Kraft and Revlon, Alma creates ads that are a part of programs incorporating 
 

A. 

psychographic differences.

B. 

population inputs.

C. 

multicultural marketing.

D. 

a value consciousness.

E. 

macroeconomics.

 

75.

The set of values, ideas, and attitudes that are learned and shared among the members of a group is referred to as 
 

A. 

customs.

B. 

morals.

C. 

norms.

D. 

culture.

E. 

ethics.

 

76.

Culture refers to the 
 

A. 

moral and ethical beliefs of a family passed down from generation to generation.

B. 

set of values, ideas, and attitudes that are learned and shared among the members of a group.

C. 

pastimes associated with the fine arts, such as ballet, music, and theater.

D. 

standard or pattern of behaviors that is typical or expected of a group.

E. 

description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.

 

77.

Culture is a component of what type of environmental force that must be scanned to assess its impact on the organization's marketing environment? 
 

A. 

regulatory

B. 

technological

C. 

competitive

D. 

economic

E. 

social

 

78.

Which one of the following is a value that would be commonly held in the United States today? 
 

A. 

individualism

B. 

tradition

C. 

group welfare

D. 

nostalgia

E. 

acceptance of birthright

 

79.

All of the following are commonly held values in the United States except 
 

A. 

equality.

B. 

action.

C. 

belief in fate.

D. 

continuous change.

E. 

personal control.

 

80.

Which of the following is a commonly held value in the United States? 
 

A. 

the importance of rank and status

B. 

the importance of tradition

C. 

belief in fate

D. 

competition

E. 

acceptance of birthright

 

81.

Two increasingly important values for consumers around the world are 
 

A. 

self-esteem and fitness.

B. 

wealth and health.

C. 

patriotism and friendship.

D. 

family and fun.

E. 

sustainability and preservation of the environment.

 

82.

Consumers are buying hybrid gas-electric automobiles such as the Toyota Prius. This is an example of which increasingly common cultural value? 
 

A. 

preserving the environment

B. 

paying the least amount possible for products

C. 

reducing inequality among competing brands

D. 

believing in fate

E. 

reducing cognitive dissonance

 

83.

Many consumers are committed to brands with a strong link to social action. An example of this would be 
 

A. 

McDonald's "I'm Lovin' It" campaign.

B. 

Brita's "Filter for Good" campaign.

C. 

Diesel's "Be Stupid" campaign.

D. 

Liz Claiborne's "Claiborne for Men" campaign.

E. 

Samsung's "The Jitterbug" campaign.

 

84.

Growing interest in hybrid vehicles reflects new consumer focus related to sustainability and the environment. This interest is an example of 
 

A. 

changing values.

B. 

changing population composition.

C. 

changing demographics.

D. 

changing regulatory forces.

E. 

changing ethnic composition.

 

85.

Value consciousness is defined as 
 

A. 

special deals to customers who shop for bargains online.

B. 

the concern for obtaining the best quality, features, and performance of a product or service for a given price that drives consumption behavior.

C. 

a change in consumption orientation.

D. 

budgeting.

E. 

money management.

 

86.

The economy is defined as 
 

A. 

the independent financial factors that are not affected by changes in government spending.

B. 

the purchase of the highest quality product for the lowest possible price.

C. 

the production, distribution, and consumption of products, services, and ideas by households.

D. 

the income, expenditures, and resources that affect the cost of running a business and household.

E. 

the forces within a manufacturer's control that affect the demand and supply its offerings.

 

87.

All of the following are economic indicators except 
 

A. 

inflation.

B. 

barriers to entry.

C. 

unemployment.

D. 

GDP.

E. 

deflation.

 

88.

A sudden drop in the average consumer income would be an example of which environmental force? 
 

A. 

economic

B. 

competitive

C. 

technological

D. 

social

E. 

regulatory

 

89.

Oil prices have an impact on transportation costs for many types of products. Should oil prices change, the price consumers pay for products often is adjusted accordingly. Changing oil prices would be an example of __________ force. 
 

A. 

a social

B. 

an economic

C. 

a technological

D. 

a competitive

E. 

a regulatory

 

90.

In October 2015, Yahoo announced plans to expand its already substantial facilities in Quincy, Washington, a town that previously had a population of 3,500. Yahoo had joined others in building facilities in Quincy. Along with these developments, the residents of Quincy are getting more traffic lights, a strip mall, higher housing prices, and new jobs. This example best illustrates __________ change that will impact the people and businesses of Quincy. 
 

A. 

a social

B. 

a regulatory

C. 

a competitive

D. 

an economic

E. 

a technological

 

91.

In __________ economy, the cost to produce and buy products and services escalates as prices increase. 
 

A. 

an inflationary

B. 

an expansionary

C. 

a deflationary

D. 

a recessionary

E. 

a depressive

 

92.

In __________ economy, if prices rise faster than consumer incomes, the number of items consumers can buy decreases. 
 

A. 

a deflationary

B. 

an expansionary

C. 

a recessionary

D. 

an inflationary

E. 

a depressive

 

93.

In an inflationary economy, the cost to produce and buy products and services __________ as prices __________. 
 

A. 

increases; increase

B. 

increases; decrease

C. 

decreases; increase

D. 

decreases; decrease

E. 

does not change; increase

 

94.

The College Board reports that since 2000, college tuition and fees have increased by 160 percent while the share of family income required to pay for tuition at public four-year colleges has risen from 5 percent in 2000 to 14 percent in 2015. This is an example of __________ condition. 
 

A. 

a deflationary

B. 

a recessionary

C. 

a repressive

D. 

an inflationary

E. 

a depressive

 

95.

A time of declining economic activity when businesses decrease production, unemployment rises, and many consumers have less money to spend is referred to as 
 

A. 

deflation.

B. 

inflation.

C. 

prosperity.

D. 

a recession.

E. 

a depression.

 

96.

All of the following are time periods that the U.S. economy experienced a period of recession except 
 

A. 

1973-1975.

B. 

1981-1982.

C. 

1990-1991.

D. 

2007-2009.

E. 

2010-2013.

 

97.

Components of a consumer's income consist of 
 

A. 

inflationary, recessionary, and depressive economies.

B. 

salaries, taxes, and assets.

C. 

gross, disposable, and discretionary components.

D. 

sales taxes, income taxes, and property taxes.

E. 

assets, liabilities, and equities.

 

98.

The total amount of money made in one year by a person, household, or family unit is referred to as __________ income. 
 

A. 

government

B. 

discretionary

C. 

disposable

D. 

gross

E. 

livable

 

99.

Gross income refers to 
 

A. 

the money that remains after paying for taxes and necessities.

B. 

the money deducted from a person's paycheck to pay for federal, state, and local taxes.

C. 

the money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation.

D. 

the total amount of money made by a single individual during his or her lifetime.

E. 

the total amount of money made in one year by a person, household, or family unit.

 

100.

At the U.S. Census Bureau, gross income is referred to as 
 

A. 

buying power.

B. 

cash inflow.

C. 

fiscal power.

D. 

money income.

E. 

household income.

 

101.

In 1970, the typical U.S. household earned about $8,700. In 2013, the typical U.S. household earned about $51,939. If adjusted for inflation, the gross income of the typical U.S. household in 2013 relative to 1970 has 
 

A. 

increased dramatically.

B. 

increased somewhat.

C. 

remained relatively stable.

D. 

decreased somewhat.

E. 

decreased dramatically.

 

102.

Approximately what percentage of U.S. households has an annual income between $25,000 and $99,999? 
 

A. 

13

B. 

28

C. 

37

D. 

42

E. 

54

 

103.

The money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation is referred to as 
 

A. 

net income.

B. 

disposable income.

C. 

discretionary income.

D. 

household income.

E. 

gross income.

 

104.

Disposable income refers to 
 

A. 

the money that remains before paying for taxes and necessities.

B. 

the money deducted from a person's paycheck to pay for federal, state, and local taxes.

C. 

the total amount of money made by a single individual during his or her lifetime.

D. 

the money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation.

E. 

the money that is spent for necessities or charitable causes that is exempt from taxation.

 

105.

If taxes rise at a faster rate than incomes, consumers will 
 

A. 

have less disposable income and try to economize.

B. 

feel more confident in the government and therefore spend more money.

C. 

use cash for purchases such as a vacation.

D. 

recognize that it is the perfect opportunity to buy a car or other expensive products on credit.

E. 

react by voting for all incumbent members of Congress.

 

106.

The recent large decline in __________ has caused consumers to adjust their spending in other categories. 
 

A. 

automobile prices

B. 

gasoline prices

C. 

interest rates

D. 

consumer confidence

E. 

property values

 

107.

The changes in __________ has a psychological impact on consumers who tend to spend more when they feel their net worth is rising and postpone purchases when it declines. 
 

A. 

automobile prices

B. 

fuel prices

C. 

the number of people competing for jobs

D. 

consumer confidence

E. 

home values

 

108.

During a recessionary period, which of the following economic behavior would be expected? 
 

A. 

Consumer spending would increase.

B. 

The use of credit would decline.

C. 

Taxes would increase nationally.

D. 

Property values would jump dramatically.

E. 

Consumers would use the majority of their discretionary income on entertainment.

 

109.

During a recessionary period, which of the following economic behavior would be expected? 
 

A. 

Consumer spending would decrease.

B. 

Consumer use of credit would increase.

C. 

Taxes would increase nationally.

D. 

Property values would jump dramatically.

E. 

Consumers would use the majority of their discretionary income on groceries.

 

110.

Emily had an excellent year as a salesperson in 2015, earning $97,000. She paid $37,000 for necessities such as mortgage, food, and clothing. Her state and federal income taxes totaled $24,000. What was her disposable income? 
 

A. 

$36,000

B. 

$73,000

C. 

$60,000

D. 

$97,000

E. 

There is not enough data provided to calculate her discretionary income.

 

111.

The money that remains after paying for taxes and necessities is referred to as 
 

A. 

net income.

B. 

discretionary income.

C. 

disposable income.

D. 

household income.

E. 

gross income.

 

112.

Discretionary income refers to 
 

A. 

the money deducted from a person's paycheck to pay for federal, state, and local taxes.

B. 

the total amount of money made by a single individual during his or her lifetime.

C. 

the money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation.

D. 

the money that is spent for necessities or charitable causes that is exempt from taxation.

E. 

the money that remains after paying for taxes and necessities.

 

113.

Income used to buy luxury items such as a Cunard cruise is referred to as 
 

A. 

gross income.

B. 

disposable income.

C. 

surplus income.

D. 

wealth income.

E. 

discretionary income.

 

114.

The Department of Labor monitors consumer expenditures through its annual 
 

A. 

Consumer Price Index.

B. 

Consumer Confidence Index.

C. 

Consumer Expenditure Survey.

D. 

Index of Consumer Sentiment.

E. 

National Consumer Spending Assessment.

 

115.

The Department of Labor monitors consumer expenditures through its annual Consumer Expenditure Survey. In the most recent report, consumers spent after taxes about 13 percent of their income on food, 33 percent on __________, 3 percent on clothes, and 24 percent on transportation and health care, with the rest generally considered discretionary. 
 

A. 

education

B. 

housing

C. 

vacations

D. 

entertainment

E. 

investments

 

116.

Increases in discretionary income can occur as a result of all of the following except 
 

A. 

an increase in gross income.

B. 

a decrease in taxes.

C. 

an increase in disposable income.

D. 

a decrease in housing costs.

E. 

an increase in interest rates.

 

117.

Most specifically, if a consumer's __________ increases, he or she is able to take advantage of the luxurious vacation travel opportunities offered on the Queen Mary 2, a cruise liner operated by Cunard. 
 

A. 

savings rate

B. 

gross income

C. 

taxes

D. 

discretionary income

E. 

disposable income

 

118.

Emily had an excellent year as a salesperson in 2015, earning $97,000. She paid $37,000 for necessities such as mortgage, food, and clothing. Her state and federal income taxes totaled $24,000. What was her discretionary income? 
 

A. 

$36,000

B. 

$60,000

C. 

$73,000

D. 

$97,000

E. 

Not enough information is provided to calculate her discretionary income.

 

119.

A local pet supplies boutique had a good year with rising revenues and reduced operating costs resulting in personal income for the owner of nearly $100,000. One-third of that went to local, state, and federal income taxes and another third went to pay for a home mortgage, car payments, food, clothing, and other necessities. What is the remaining third called? 
 

A. 

gross income

B. 

bonus income

C. 

discretionary income

D. 

disposable income

E. 

profit

 

120.

Jason and Lucy prepared a household budget in an attempt to manage their money better. They prepared the following list: Monthly income (after taxes) = $4,500; Monthly expenses (necessities), which include rent, $550; auto loan, $250; student loan, $200; savings, $500; food, $200 = $1,700; Amount left over = $2,800 (income less necessary expenses). The $2,800 they had left over is their 
 

A. 

gross income.

B. 

personal income.

C. 

disposable income.

D. 

discretionary income.

E. 

profit.

 

121.

Recently, the number of people who attended music concerts, plays, and other live entertainment increased because they had the __________ to enjoy these activities. 
 

A. 

gross income

B. 

bonus income

C. 

profit

D. 

disposable income

E. 

discretionary income

 

122.

Last year, the Parker family dined at nice restaurants almost four times a week. Even though Mr. Parker received a 2 percent pay raise, the cost of living rose by 4 percent and property taxes went up 5 percent in their community. As a result, the family now eats most of their meals at home, dining out only a few times a month. This reflects 
 

A. 

a decrease in the number of fine restaurants that can stay in business during times of economic downturn.

B. 

a reaction to a loss of discretionary income.

C. 

a significant drop in disposable income since there was a negative gain in income.

D. 

a rise in deflation.

E. 

a shift from spending to investing.

 

123.

Recent data on consumer expenditures indicate that the savings rate of U.S. consumers has 
 

A. 

declined by 6 percent.

B. 

remained flat at 0 percent.

C. 

fluctuated minimally around 2 percent.

D. 

risen to 5.8 percent.

E. 

exploded to nearly 10 percent.

 

124.

Inventions or innovations from applied science or engineering research are referred to as 
 

A. 

scientific discoveries.

B. 

theoretical development.

C. 

technology.

D. 

patents.

E. 

dynamic engineering.

 

125.

Technology is defined as 
 

A. 

any device or process based on scientific discoveries that are less than one year old.

B. 

any mechanical device used in the production or distribution of a product.

C. 

scientific findings that are used now or are able to generate a profit.

D. 

ideas or concepts that will one day be translated into usable devices, mechanisms, or processes.

E. 

the inventions or innovations from applied science or engineering research.

 

126.

Technological advances are difficult to predict. One great advance can replace or substitute for existing products in a relatively short period. Tablets and smartphones with wireless connectivity are most likely to replace or substitute for 
 

A. 

TV broadcasts.

B. 

digital video recorders.

C. 

printed media.

D. 

printed images.

E. 

online video games.

 

127.

According to the textbook, four new technologies are expected to have an impact on marketing. These are: 
 

A. 

biotechnology, smart grid services, natural user interfaces, and social networks.

B. 

neuron technology, lithium batteries, cloud computing, and wireless power.

C. 

crowdsourcing, genomics, QR codes, and smart bio watches.

D. 

the Internet of Things, five-sense computing (computers with all five senses), smart grid electricity services, and 3-D technologies.

E. 

nanotechnology, autobots, cloud computing, and electric cars.

 

128.

Oral-B toothbrushes now connect to your smartphone to provide real-time feedback on your brushing. This is an example of how __________ forces help improve or replace existing products and companies. 
 

A. 

ecological

B. 

regulatory

C. 

legal

D. 

competitive

E. 

technological

 

129.

Recently, ink has been developed that will conduct electricity. The application for this ink is to print circuitry that can be read electronically. This may help to drive down the cost of radio frequency (RFID) tags that are currently used in industry. This is an example of how __________ forces are applied to industry. 
 

A. 

ecological

B. 

regulatory

C. 

technological

D. 

competitive

E. 

marketing mix

 

130.

One reason some people don't like to buy clothing from Internet retailers is the inability to know if the clothes will fit. ImageTwin has developed a scanning system that obtains the measurements of individuals, which is then fed into a database. When you want to buy something at LandsEnd.com, you can see a 3-D image of what the item should look like on your body. This is an example of the __________ force in the marketing environment. 
 

A. 

economic

B. 

technological

C. 

sociocultural

D. 

competitive

E. 

marketing mix

 

131.

Cloud computing, such as Apple's iCloud, enables businesses and consumers to share data or use software applications directly from a remote server over the Internet or wirelessly rather than having that data file or program reside on a personal computer. This is an example of a __________ change in the marketing environment. 
 

A. 

regulatory

B. 

sociocultural

C. 

competitive

D. 

technological

E. 

marketing mix

 

132.

According to the textbook, __________ has developed technology that uses speech recognition to listen to your phone calls and pull up search data related to your conversations. 
 

A. 

Google

B. 

PrintingStore

C. 

MindMeld

D. 

Facebook

E. 

FlexBall

 

133.

Green technologies such as smart grid electricity services, online energy management, and consumer-generated energy are __________ forces that would be identified through an environmental scan. 
 

A. 

social

B. 

competitive

C. 

regulatory

D. 

technological

E. 

economic

 

134.

The Internet of Things (IoT) refers to 
 

A. 

technological breakthroughs that allow major innovation to occur.

B. 

the network of products with connectivity-enabled electronics.

C. 

an explosion in interest in advanced analytics.

D. 

technological specifications that identify access to networks.

E. 

the belief in technology as a driver of success in the marketplace.

 

135.

The Electronic Signatures in Global and National Commerce Act makes digital signatures as valid as pen-and-ink signatures. This act created a demand for software and hardware that would collect, transmit, and receive digital signatures. This example indicates how __________ forces can work together in the marketing environment. 
 

A. 

technological and regulatory

B. 

technological and competitive

C. 

social and competitive

D. 

social and economic

E. 

regulatory and economic

 

136.

Marketspace refers to 
 

A. 

the two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller.

B. 

websites that allow people to congregate online and exchange views on topics of common interest.

C. 

Internet search engines used for the purpose of data mining.

D. 

an information- and communication-based electronic exchange environment occupied by sophisticated computer and telecommunication technologies and digital offerings.

E. 

the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.

 

137.

An information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunications technologies and digital offerings is referred to as 
 

A. 

Internet marketing.

B. 

marketspace.

C. 

electronic commerce.

D. 

marketplace.

E. 

e-exchange.

 

138.

Any activity that uses electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services is referred to as 
 

A. 

electronic commerce.

B. 

internet barter.

C. 

intranet exchange.

D. 

electronic exchange.

E. 

extranet trade.

 

139.

Electronic commerce refers to 
 

A. 

an information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunications technologies and digitized offerings.

B. 

any activity that uses electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services.

C. 

two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller.

D. 

electronic storefronts that focus on converting an online browser into an online, catalog, or in-store buyer.

E. 

electronic storefronts that advertise and promote a company's products and services and provide information on how items can be used and where they can be purchased.

 

140.

Buying a book at www.amazon.com to give as a birthday present is an example of __________ transaction. 
 

A. 

an i-market

B. 

an intranet

C. 

an electronic commerce

D. 

an extranet

E. 

a marketplace

 

141.

Alternative firms that could provide a product to satisfy a specific market's needs are referred to as 
 

A. 

substitute firms.

B. 

target markets.

C. 

complementary firms.

D. 

cross product marketers.

E. 

competition.

 

142.

Competition refers to 
 

A. 

identical products that perform identical functions.

B. 

any for-profit organization that targets the customers of other organizations.

C. 

alternative firms that could provide a product to satisfy a specific market's needs.

D. 

any product or service that vies for a portion of a customer's discretionary income.

E. 

the set of firms that operate in a given geographic region, regardless of product or service.

 

143.

In business, the four basic forms of competition are 
 

A. 

pure competition, limited competition, oligopoly, and monopoly.

B. 

dictatorship, monarchy, oligarchy, and democracy.

C. 

pure competition, cross-market competition, oligopoly, and pure monopoly.

D. 

technological competition, market competition, governmental competition, and environmental competition.

E. 

pure competition, monopolistic competition, oligopoly, and pure monopoly.

 

144.

Many firms now use e-mail and the Internet to promote their products instead of sending promotional literature to current and prospective customers through the mail. UPS and FedEx continue to grow, offering both overnight and ground package delivery services. As a result, the U.S. Postal Service (USPS) has lost millions of customers and billions in revenue. The USPS has challenges ahead in coping with ___________ forces in the marketplace. 
 

A. 

economic

B. 

competitive

C. 

legal

D. 

social

E. 

technological

 

145.

The form of competition in which there are many sellers and they each have a similar product is referred to as 
 

A. 

pure competition.

B. 

singular competition.

C. 

an oligopoly.

D. 

monopolistic competition.

E. 

a monopoly.

 

146.

Agribusinesses that sell commodity products such as wheat, rice, and corn are often in __________ position with their competitors. 
 

A. 

a limited competition

B. 

a pure competition

C. 

an oligopolistic competition

D. 

a monopolistic competition

E. 

a monopolistic

 

147.

__________ is the form of competition where distribution is the only element of the marketing mix that exerts much of an impact on the firm. 
 

A. 

Cross-market competition

B. 

Limited competition

C. 

Pure competition

D. 

Monopolistic competition

E. 

A monopoly

 

148.

The form of competition in which many sellers compete with substitutable products within a price range is called 
 

A. 

pure competition.

B. 

cross-market competition.

C. 

an oligopoly.

D. 

monopolistic competition.

E. 

a monopoly.

 

149.

The use of coupons is a frequently used marketing tactic for which form of competition? 
 

A. 

pure competition

B. 

cross-market competition

C. 

an oligopoly

D. 

a monopoly

E. 

monopolistic competition

 

150.

Paul Avery is a salesperson at the only Ford automobile dealership in Wausau, Wisconsin. However, there are several other auto dealerships in town, offering both domestic and foreign cars and trucks. Paul works hard to keep his customers satisfied because he knows that if his customers are unhappy, they can simply buy a car from one of the several other comparable dealers in Wausau. This marketing environment is an example of 
 

A. 

pure competition.

B. 

monopolistic competition.

C. 

an oligopoly.

D. 

a monopoly.

E. 

marginal competition.

 

151.

During the holiday shopping season, many catalog retailers offer buyers price reductions, coupons, two-for-one deals, and/or free delivery. This is because these catalog retailers operate in __________ environment. 
 

A. 

a pure competition

B. 

an oligopoly

C. 

a monopolistic competition

D. 

a monopoly

E. 

a marginal competition

 

152.

The form of competition where just a few companies control the majority of industry sales is referred to as 
 

A. 

pure competition.

B. 

cross-market competition.

C. 

an oligopoly.

D. 

monopolistic competition.

E. 

a monopoly.

 

153.

AT&T, Verizon, Sprint, and T-Mobile serve more than 95 percent of the subscribers in the U.S. wireless mobile phone market. Which form of competition characterizes this market? 
 

A. 

pure competition

B. 

limited competition

C. 

a monopoly

D. 

an oligopoly

E. 

monopolistic competition

 

154.

Because there are few sellers, price competition among firms is not desirable for them in which form of competition? 
 

A. 

pure competition

B. 

cross-market competition

C. 

a monopoly

D. 

monopolistic competition

E. 

an oligopoly

 

155.

The entertainment industry in the United States is dominated by Viacom, Disney, and Time Warner. In terms of the form of competition, this industry is an example of 
 

A. 

a monopoly.

B. 

a mega monopoly.

C. 

a pure competition.

D. 

an oligopoly.

E. 

a monopolistic competition.

 

156.

The U.S. Securities and Exchange Commission has designated just nine credit-rating agencies as nationally recognized statistical rating organizations, which include Moody's, Standard & Poor's, and Fitch Ratings. These agencies provide opinions on the creditworthiness of other entities and the financial obligations issued by them. Because so few companies can compete in it, the credit-rating industry would be considered 
 

A. 

a mega monopoly.

B. 

an oligopoly.

C. 

a pure competition.

D. 

a monopolistic competition.

E. 

a monopoly.

 

157.

Boeing, Northrup Grumman, and Lockheed Martin control the vast majority of the U.S. defense contractor industry. In terms of the form of competition, this industry is an example of 
 

A. 

an oligopoly.

B. 

a trilateral monopoly.

C. 

a monopoly.

D. 

a pure competition.

E. 

a monopolistic competition.

 

158.

In marketing, the form of competition that occurs when only one firm sells the product is referred to as 
 

A. 

pure competition.

B. 

a megopoly.

C. 

an oligopoly.

D. 

monopolistic competition.

E. 

pure monopoly.

 

159.

Since __________ is typically regulated by the state or federal government, marketing plays a relatively small role in this setting. 
 

A. 

pure competition

B. 

a pure monopoly

C. 

an oligopoly

D. 

monopolistic competition

E. 

a megopoly

 

160.

In many geographic areas, there is only a single provider for gas and electric service for businesses and consumers. However, the government regulates that firm to ensure price protection for the buyer. This is an example of 
 

A. 

pure competition.

B. 

a pure monopoly.

C. 

an oligopoly.

D. 

monopolistic competition.

E. 

a megopoly.

 

161.

Barriers to entry refer to 
 

A. 

pure competition from many new firms.

B. 

the likelihood of new entrants.

C. 

monopolistic competition.

D. 

business practices that make it difficult for new firms to enter the market.

E. 

a megopoly.

 

162.

Small businesses make up the majority of the competitive landscape for most businesses. There are approximately __________ small businesses in the United States. 
 

A. 

17 million

B. 

28.2 million

C. 

39 million

D. 

52 million

E. 

97 million

 

163.

Small businesses employ __________ of all private-sector employees. 
 

A. 

one-quarter

B. 

one-third

C. 

48 percent

D. 

three-quarters

E. 

nearly all

 

164.

Small businesses account for __________ of the gross domestic product (GDP). 
 

A. 

21 percent

B. 

32 percent

C. 

46 percent

D. 

68 percent

E. 

82 percent

 

165.

The restrictions that state and federal laws place on business with regard to the conduct of its activities are referred to as 
 

A. 

jurisprudence.

B. 

competitive constraints.

C. 

barriers to entry.

D. 

restraints of trade.

E. 

regulation.

 

166.

Regulation refers to 
 

A. 

the restrictions that state and federal laws place on business with regard to the conduct of its activities.

B. 

constraints placed on businesses for activities that are legal but unethical.

C. 

society's values and standards that are enforceable in the courts.

D. 

requirements concerning which customers a firm may serve or not serve.

E. 

the moral principles and values that govern the actions and decisions of an individual or group.

 

167.

An Arizona cardiac surgery practice agreed to pay the U.S. Department of Health and Human Services a $100,000 settlement following an investigation of potential violations of the Health Insurance Portability and Accountability Act (HIPAA) Privacy and Security Rules. The practice posted clinical and surgical appointments for its patients on an Internet-based calendar that was publicly accessible, which drew complaints for failing to protect health information of consumers. HIPAA rules are an example of __________ forces in the marketing environment. 
 

A. 

economic

B. 

ecological

C. 

technological

D. 

social

E. 

regulatory

 

168.

Legislation that prohibits price-fixing is an example of __________ forces that affect the marketing environment. 
 

A. 

economic

B. 

ecological

C. 

technological

D. 

regulatory

E. 

social

 

169.

F. Hoffman-LaRoche Ltd. and BASF AG, two international pharmaceutical companies, were ordered to pay $725 million in fines for plotting to raise and fix prices of vitamins used in virtually every home in the United States. This is an example of how __________ forces affect the marketing environment. 
 

A. 

economic

B. 

ecological

C. 

technological

D. 

social

E. 

regulatory

 

170.

The first major federal legislation passed to encourage competition in the United States was the 
 

A. 

Sherman Antitrust Act.

B. 

Lanham Act.

C. 

Federal Trade Commission Act.

D. 

Robinson-Patman Act.

E. 

Clayton Act.

 

171.

The first major federal legislation passed to forbid contracts, combinations, or conspiracies in restraint of trade in the United States was the 
 

A. 

Lanham Act.

B. 

Sherman Antitrust Act.

C. 

Federal Trade Commission Act.

D. 

Robinson-Patman Act.

E. 

Clayton Act.

 

172.

The first major federal legislation passed to forbid actual monopolies or attempts to monopolize any part of trade or commerce in the United States was the 
 

A. 

Lanham Act.

B. 

Federal Trade Commission Act.

C. 

Robinson-Patman Act.

D. 

Sherman Antitrust Act.

E. 

Clayton Act.

 

173.

Which of the following laws has the purpose of protecting competition? 
 

A. 

Lanham Act

B. 

Federal Trade Commission Act

C. 

Fair Trade Act

D. 

Unfair Practices Act

E. 

Sherman Antitrust Act

 

174.

The purpose of the Clayton Act is to 
 

A. 

provide incentives for interstate commerce.

B. 

forbid actions that are likely to lessen competition, although no actual harm has yet occurred.

C. 

exact compensation from firms found guilty of violating fair trade practices.

D. 

repeal provisions of the Sherman Antitrust Act that stifled innovation.

E. 

strengthen the Robinson-Patman Act.

 

175.

The purpose of the __________ is to forbid certain actions that are likely to lessen competition, although no actual harm has yet occurred. 
 

A. 

Federal Trade Commission Act

B. 

Lanham Act

C. 

Clayton Act

D. 

Sherman Antitrust Act

E. 

Robinson-Patman Act

 

176.

Which of the following laws has the purpose of protecting competition? 
 

A. 

Prevention and Enforcement Act

B. 

Clayton Act

C. 

Federal Trade Commission Act

D. 

Fair Trade Act

E. 

Unfair Practices Act

 

177.

The __________ makes it unlawful to discriminate in prices charged to different purchasers of the same product, where the effect may substantially lessen competition or help to create a monopoly. 
 

A. 

Fair Trade Act

B. 

Clayton Act

C. 

Lanham Act

D. 

Robinson-Patman Act

E. 

Unfair Practices Act

 

178.

The purpose of the Robinson-Patman Act is to 
 

A. 

outlaw price discrimination for purchasers of the same product.

B. 

encourage pure competition.

C. 

protect inventors from having their intellectual property stolen.

D. 

repeal the Sherman Antitrust Act.

E. 

provide incentives for interstate commerce.

 

179.

The federal government enacted the __________ to make it unlawful to discriminate in prices charged to different purchasers of the same product, where the effect may substantially lessen competition or help to create a monopoly. 
 

A. 

Fair Trade Act

B. 

Clayton Act

C. 

Lanham Act

D. 

Robinson-Patman Act

E. 

Unfair Practices Act

 

180.

Which of the following laws has the purpose of protecting competition? 
 

A. 

Lanham Act

B. 

Federal Trade Commission Act

C. 

Fair Trade Act

D. 

Unfair Practices Act

E. 

Robinson-Patman Act

 

181.

The purpose of patent law is to 
 

A. 

provide incentives for increased competition and lower prices by limiting the granting of patents.

B. 

give an author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise copy that work.

C. 

give inventors of new and novel products the right to exclude others from making, using, or selling products that infringe the patented invention.

D. 

guarantee the quality and safety of any product produced or distributed in the United States.

E. 

level the playing field between inventors who work for large corporations and those who work on their own.

 

182.

A company can protect its competitive position under __________, which gives inventors of new and novel products the right to exclude others from making, using, or selling products that infringe on the invention. 
 

A. 

copyright law

B. 

patent law

C. 

trademark law

D. 

commercial law

E. 

antitrust law

 

183.

The purpose of copyright law is to 
 

A. 

provide incentives for increased competition.

B. 

give inventors of new and novel products the right to exclude others from making, using, or selling products that infringe the patented invention.

C. 

level the playing field between inventors who work for large corporations and those who work on their own.

D. 

guarantee the quality and safety of any product produced or distributed in the United States.

E. 

give an author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise copy that work.

 

184.

The purpose of __________ is to give the author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise copy that work. 
 

A. 

copyright law

B. 

patent law

C. 

trademark law

D. 

commercial law

E. 

antitrust law

 

185.

The Digital Millennium Copyright Act, signed in 1998, 
 

A. 

limits access of children to online material considered to be inappropriate or harmful.

B. 

improves protection of copyrighted digital products.

C. 

allows the government to collect taxes if printed materials are sold online.

D. 

prevents the pirating of digital products that do not have a registered trademark.

E. 

allows anyone with access to a computer to publish original materials online and seek remuneration (pay).

 

186.

The Child Protection Act (1966) and the Consumer Product Safety Act (1972) are examples of 
 

A. 

pricing-related legislation.

B. 

laws specifying product requirements.

C. 

fair trade legislation.

D. 

distribution-related legislation.

E. 

requirement contracts.

 

187.

All of the following federal laws are designed to protect consumers except 
 

A. 

Consumer Product Safety Act.

B. 

FTC Act of 1914.

C. 

Nutritional Labeling and Education Act.

D. 

Digital Millennium Copyright Act.

E. 

Child Protection Act.

 

188.

The grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions is referred to as 
 

A. 

Naderism.

B. 

consumerism.

C. 

green marketing.

D. 

anti-corporate activism.

E. 

cause marketing.

 

189.

Consumerism refers to 
 

A. 

a movement of conspicuous consumption that began when World War II ended.

B. 

conducting business in a way that protects the natural environment while making economic progress.

C. 

a collaborative effort between buyers and sellers to create an exchange where each benefit.

D. 

the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.

E. 

the grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions.

 

190.

Which of these laws came about as a response to the 1960s grassroots movement known as consumerism? 
 

A. 

Robinson-Patman Act

B. 

Clayton Act

C. 

Digital Millennium Copyright Act

D. 

FTC Act

E. 

Consumer Product Safety Act

 

191.

Each year, the U.S. Army shoots an estimated 200 million rounds of lead bullets at target practice areas across the United States. Pentagon officials, in response to environmentalists' concerns over lead poisoning in the soil, have invested over $12 million to develop an environmentally safe tungsten bullet. This is an example of one of the outcomes of 
 

A. 

marketing ethics.

B. 

consumerism.

C. 

cause marketing.

D. 

self-regulation.

E. 

Naderism.

 

192.

Which of the following legislative actions created a government entity to monitor business practices and stop unfair ones such as misleading promotions? 
 

A. 

Robinson-Patman Act

B. 

Consumer Product Safety Act

C. 

Lanham Act

D. 

Federal Trade Commission Act

E. 

Fair Packaging and Labeling Act

 

193.

The __________ can require a company to spend money on corrective advertising to rectify previous misleading ads. 
 

A. 

Food and Drug Administration

B. 

U.S. Department of Justice

C. 

Federal Trade Commission

D. 

Better Business Bureau

E. 

American Marketing Association

 

194.

Which of the following is an action the Federal Trade Commission (FTC) can take to stop a company from continuing an unfair trade practice? 
 

A. 

corrective advertising

B. 

a cease and desist order

C. 

a private ruling

D. 

a consent degree

E. 

a stay

 

195.

Which of the following is an action the Federal Trade Commission (FTC) can take to require a company to spend money to rectify previous misleading ads with revised information? 
 

A. 

corrective advertising

B. 

a cease and desist order

C. 

an advertising injunction

D. 

a truth in advertising order

E. 

comparative advertising

 

196.

There are many diet aids on the market. They promise immediate weight loss without exercise or a change in diet. Each is accompanied by a testimonial from a satisfied user. If you pay close attention, you will notice that each ad also contains the statement, "Results may vary." Most likely this statement is included to prevent the Federal Trade Commission (FTC) from requiring the dietary aid distributor from having to 
 

A. 

engage in self-regulation.

B. 

engage in comparative advertising.

C. 

issue an advertising injunction.

D. 

guarantee truth in advertising.

E. 

run corrective advertising.

 

197.

For 18 months, Warner-Lambert Co., an American pharmaceutical company, was required to include the following statement in all television advertisements for Listerine: "Listerine will not help prevent colds or sore throats or lessen their severity." The Federal Trade Commission (FTC) imposed this requirement because previous advertising had caused consumers to believe Listerine was effective against colds. This is an example of the FTC action known as 
 

A. 

corrective advertising.

B. 

deceptive advertising.

C. 

unethical advertising.

D. 

cease and desist advertising.

E. 

self-regulation.

 

198.

It had been the Campbell Soup Co.'s practice to insert clear glass marbles into the bottom of soup containers used in print advertisements to bring some of the soup's ingredients (e.g., noodles or chicken) to the surface, thus misrepresenting the amount of solid ingredients in the soup. Which agency would monitor such a practice? 
 

A. 

Food and Drug Administration

B. 

U.S. Department of Justice

C. 

Federal Trade Commission

D. 

Better Business Bureau

E. 

American Marketing Association

 

199.

Recent legislation including the Telephone Consumer Protection Act and the Controlling the Assault of Non-solicited Pornography and Marketing (CAN-SPAM) Act are reforms that are 
 

A. 

promotion-related.

B. 

price-related.

C. 

distribution-related.

D. 

self-regulated.

E. 

product-related.

 

200.

The Lanham Act (1946) 
 

A. 

prevents someone from using a trademark on a noncompeting product.

B. 

protects the consumer from product defects.

C. 

provides for registration of a company's trademarks.

D. 

allows a company to secure rights to a name before its actual use.

E. 

facilitates the protection of U.S. trademark rights throughout the world.

 

201.

The __________ provides for registration of a company's trademark, such as the Nike swoosh. 
 

A. 

Lanham Act

B. 

Patent Act

C. 

Clayton Act

D. 

Sherman Antitrust Act

E. 

The FTC Act

 

202.

The two major purposes for any trademark statute are to 
 

A. 

(1) protect the investment of energy, time, and money that the owner of a trademark has invested in the development of the product and (2) guarantee the owner of the trademark complete rights to his or her work for the duration of the owner's lifetime.

B. 

(1) protect the inventor's individual rights and (2) provide the company with the maximum profits possible.

C. 

protect the rights of the inventor both here and abroad.

D. 

(1) protect the public so they will get the product it wants and asks for and (2) protect the government so it will be able to collect its fair share of taxes from the revenues generated.

E. 

(1) protect the firm selling the trademarked product and (2) protect the consumer buying the product.

 

203.

The Lanham Act cannot protect the rights to a trademark if 
 

A. 

the company is accused of violating the Sherman Antitrust Act.

B. 

the product patent is less than 17 years old.

C. 

the word, name, or symbol has become generic.

D. 

the statute of limitations has run out.

E. 

the government refuses to enforce violations.

 

204.

Registration under the Lanham Act provides important advantages to a trademark owner that has used the trademark in interstate or foreign commerce, but it does not 
 

A. 

allow a trademark to be used for more than 83 years.

B. 

provide reciprocity with foreign firms allowing their trademarks to be honored here.

C. 

prevent other firms from obtaining similar trademarks for significant improvements on the original product.

D. 

guarantee protection under the Trademark Law Revision Act.

E. 

confer ownership.

 

205.

The popular cupcake chain Sprinkles, which launched in Southern California in 2005, recently settled a trademark infringement lawsuit against a Connecticut bakery that was calling itself Pink Sprinkles. The latter was forced to change its name to Pink Cupcake Shack because it was apparently violating provisions of the 
 

A. 

Consumer Product Safety Act.

B. 

Consumer Bill of Rights.

C. 

Lanham Act.

D. 

Sherman Antitrust Act.

E. 

CAN-SPAM Act.

 

206.

The __________ provides for registration of a company's trademark. 
 

A. 

Patent Act

B. 

Clayton Act

C. 

Sherman Antitrust Act

D. 

Lanham Act

E. 

The FTC Act

 

207.

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

A. 

Coca-Cola risks losing its generic status.

B. 

In order to maintain the use of its widely recognizable trademark, Coca-Cola must prevent the name from becoming generic.

C. 

The Robinson-Patman Act conferred ownership of the Coke name and other trademarked property to the Coca-Cola Co.

D. 

The government will file charges for trademark infringement only if the owner of the trademark has documented proof of wrongdoing.

E. 

By protecting its trademark, Coca-Cola is protecting the entire soft drink industry from indirect competition.

 

208.

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

A. 

Apple risks losing its status as a generic smartphone and tablet device manufacturer.

B. 

In order to maintain the use of its widely recognizable trademark, Apple must prevent the name from becoming generic.

C. 

The Robinson-Patman Act conferred ownership of the "App Store" name and other trademarked property to Apple and/or Microsoft.

D. 

The government will file charges for trademark infringement only if Apple, the owner of the trademark, has documented proof of wrongdoing by Amazon.

E. 

By protecting its trademark, Apple is protecting the entire smartphone and tablet device industries from indirect competition.

 

209.

An alternative to government control where an industry attempts to police itself is referred to as 
 

A. 

consumer protection.

B. 

self-regulation.

C. 

industry accountability.

D. 

voluntary compliance.

E. 

government-imposed ethical policing.

 

210.

Self-regulation refers to 
 

A. 

governmental guidelines that suggest what is legal and ethical and what is not.

B. 

a self-imposed set of rules set by a specific industry watchdog group that dictates legal and ethical behaviors.

C. 

an alternative to government control where an industry attempts to police itself.

D. 

voluntary compliance to governmental rules and regulations set for a specific industry.

E. 

a set of rules created and enforced by the FTC to which all members of an industry voluntarily agree to comply.

 

211.

One of the problems associated with self-regulation is 
 

A. 

the lack of a written code of ethics by firms in the industry.

B. 

the intrusive enforcement by the FTC.

C. 

the opportunity corporate for espionage by competitors.

D. 

the absence of an industry association with persuasive power.

E. 

noncompliance by members.

 

212.

The best-known self-regulatory group is the __________, which is a voluntary alliance of companies whose goal is to help maintain fair practices. 
 

A. 

U.S. Department of Justice

B. 

National Chamber of Commerce

C. 

Better Business Bureau

D. 

Federal Trade Commission

E. 

National Federation of Independent Business

 

213.

The Better Business Bureau 
 

A. 

is the best-known federal agency involved in monitoring self-regulation of competing businesses.

B. 

has a great deal of legal power to force a company to comply with its regulations.

C. 

cannot be involved with Internet commerce.

D. 

is a voluntary alliance of companies whose goal is to help maintain fair practices.

E. 

is the agency that oversees advertising that runs on television programs.

 

214.

The Better Business Bureau (BBB) tries to use __________ to get its members to comply with its standards of business conduct. 
 

A. 

the FTC

B. 

industry trade associations

C. 

moral suasion

D. 

the courts

E. 

competitors

 

215.

When a firm or business displays the Better Business Bureau (BBB) Accredited Business logo on its store window or website, it assures consumers that 
 

A. 

the company's products comply with current safety standards set by the Consumer Product Safety Commission.

B. 

it is a member of a voluntary alliance of companies whose goal is to help maintain fair business practices.

C. 

the firm has met the standards for qualification as a green marketing firm.

D. 

the firm takes a proactive stance on diversity in the workplace.

E. 

the company incorporates sustainable business practices.

 

 


Short Answer Questions
 

216.

How would the following environmental trends influence the success of a manufacturer of high-definition televisions (HDTVs): (1) growing number of older Americans; (2) population shifts to remote suburbs and small towns; (3) increase in per capita income and standard of living; and (4) increased use of various types of communication technology? 
 


 


 


 

 

217.

List the five environmental forces that have an impact on an organization as well as its suppliers and customers. Provide examples of factors that might be examined as part of environmental scanning for each of these forces. 
 


 


 


 

 

218.

Identify the five environmental forces that affect an organization, and explain using the coffee industry as an example. What might you predict would be the future of the coffee industry. 
 


 


 


 

 

219.

Give an example of how each of the five environmental forces can impact an organization's marketing environment. 
 


 


 


 

 

220.

Describe the three generational cohorts that are of interest to marketers today. 
 


 


 


 

 

221.

Which generational cohort is also known as the baby bust? Describe the interests and lifestyles of this cohort and explain why it is important to marketers. 
 


 


 


 

 

222.

Which generational cohort is often referred to as the echo-boom or baby boomlet? Describe the interests and lifestyles of this cohort and explain why it is important to marketers. 
 


 


 


 

 

223.

Explain the trends in the racial and ethnic composition of the United States. How can marketers use this information? 
 


 


 


 

 

224.

How do the macroeconomic conditions as well as consumer income affect marketing? 
 


 


 


 

 

225.

Define technology. How does it affect marketing? 
 


 


 


 

 

226.

How does technology affect customer value? 
 


 


 


 

 

227.

Explain marketspace and its relevance for marketing. 
 


 


 


 

 

228.

There are only three major recording labels in the world—Sony Music Entertainment, Time Warner's Warner Music Group, and GE's Universal Music Group. They are responsible for the vast majority of music recordings that are made. Harry says that these three music companies operate as an oligopoly. Maryanne says that they operate as monopolistic competition. Explain how each came to his or her conclusion. Who is correct? 
 


 


 


 

 

229.

Explain the difference(s) between the Sherman Antitrust Act, the Clayton Act, and the Robinson-Patman Act, all of which were enacted to protect competition. 
 


 


 


 

 

230.

What is the difference between a patent and a copyright? Digital technology has required what additional recent legislation? 
 


 


 


 

 

231.

What actions does the Federal Trade Commission have the power to implement when dealing with deceptive or misleading advertising and unfair business practices? 
 


 


 


 

 

232.

Some industries have opted for self-regulation of their members to ensure that each acts fairly. Discuss potential problems associated with self-regulation, and give an example of it. 
 


 


 


 

 

233.

Many changes in the environment occurred to create the need for the services of Best Buy's Geek Squad. Future changes are also likely to change the way Geek Squad operates. An environmental scan helps illustrate the changes. What are some of the key changes that are occurring? 
 


 


 


 

 

234.

To continue to grow, Best Buy's Geek Squad will need to continue to scan the environment and try new approaches to creating customer value. What are some of the key new approaches that Geek Squad could explore? 
 


 


 


 

 

Document Information

Document Type:
DOCX
Chapter Number:
3
Created Date:
Aug 21, 2025
Chapter Name:
Chapter 3 Scanning The Marketing Environment
Author:
Roger A. Kerin, Steven W. Hartley

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