تسويق شابتر 3

Chapter 3The Marketing Environment, Social Responsibility, and
Ethics
ESSAY
1. Given a new brand of barbecue sauce for which to develop a marketing strategy,
describe how you would conduct environmental scanning and analysis.
ANS:
Answer not provided.
PTS: 1 DIF: Moderate

OBJ: 03-01 Recognize the importance of environmental scanning and analysis.
NAT: AACSB: Analytic | MKTG: Model Research MSC: Knowledge
2. Explain the differences between the competitive structures of a monopoly and an

oligopoly.
ANS:

OBJ: 03-02 Explore the effects of competitve, economic, political. legal and
regulatory, technological, and sociocultural factors on marketing strategies.
NAT: AACSB: Communication | MKTG: Model Marketing Plan
MSC: Knowledge
3. Explain the difference between procompetitive legislation and consumer

protection laws.
ANS:
PTS: 1 DIF: Easy

NAT: AACSB: Communication | MKTG: Model Strategy MSC: Knowledge
4. Describe several ways in which federal agencies influence marketing activities.
ANS:
PTS: 1 DIF: Easy

NAT: AACSB: Analytic | MKTG: Model Strategy MSC: Knowledge
5. What roles do the Better Business Bureau and the National Advertising Review
Board play in self-regulation of business?
ANS:

6. What are the major forces that are referred to as sociocultural forces?
ANS:

NAT: AACSB: Diversity | MKTG: Model Customer MSC: Knowledge
7. Define and describe the importance of social responsibility in marketing.
ANS:

OBJ: 03-03 Understand the concept and dimensions of social responsibility.
NAT: AACSB: Analytic | CBE: Model Strategy MSC: Knowledge
8. Provide an overview of important social responsibility issues in marketing, and

indicate their impact on marketing decisions.
ANS:

9. List and describe important ethical issues in marketing.
ANS:
PTS: 1 DIF: Easy

OBJ: 03-04 Differentiate between ethics and social responsibility.
NAT: AACSB: Ethics | MKTG: Model Strategy MSC: Knowledge
10. What are some ways to determine if an activity is ethical or socially responsible?
ANS:

MULTIPLE CHOICE
11. To monitor changes in the marketing environment effectively, marketers must

engage in
a. environmental scanning and
analysis.
b. economic scanning
c. self-regulatory analysis
d. marketing research analysis
e. information collecting
ANS: A PTS: 1 DIF: Easy

NAT: AACSB: Communication | MKTG: Model Research MSC: Knowledge
12. Collecting information from secondary sources such as business, government,

trade, and general-interest publications plays an important role in
a. environmental analysis.
b. competitive forces.
c. environmental scanning.
d. procompetitive legislation.
e. self-regulatory forces.
ANS: C PTS: 1 DIF: Easy

13. Three primary methods of collecting information for environmental scanning are
a. marketing research, company
records, and advance orders.
b. secondary sources, company
records, and observation.
c. executive knowledge, media, and
marketing research.
d. observation, secondary sources, and
marketing research.
e. company database, executive
knowledge, and research.
ANS: D PTS: 1 DIF: Moderate

14. Dell Computer collects information about a wide variety of competitive,

economic, political, legal and regulatory, technological, and sociocultural forces
that affect its marketing activities. This process is called
a. environmental scanning.
b. survey of environment.
c. marketing.
d. environmental analysis.
e. marketing information processing.
ANS: A PTS: 1 DIF: Moderate

NAT: AACSB: Communication | MKTG: Model Research MSC: Application
15. According to the textbook, a manager's duties in an environmental analysis

include
a. checking information for accuracy,
resolving inconsistencies, and
assigning significance to the
findings.
b. observation and assessment.
c. conducting research, assessment,
and reporting.
d. observation, market research, and
fact finding.
e. checking the company database,
conducting research, and reporting.

16. When PepsiCo takes the information collected through research and attempts to
assess and interpret what it means for its soft-drink marketing efforts, PepsiCo is
engaged in environmental
a. scanning.
b. forces.
c. management.
d. manipulation.
e. analysis.
ANS: E PTS: 1 DIF: Easy

NAT: AACSB: Communication | MKTG: Model Strategy MSC: Application
17. Nabisco learned that health-conscious consumers preferred lower fat snack and
lower-carbohydrate foods. At the same time, the firm saw sales of such products
slumping and was careful not to launch any new varieties of these products for a
while. Which of the following best describes Nabisco's action?
a. Environmental scanning
b. Environmental marketing
c. Demarketing
d. Segmentation
e. Environmental analysis
ANS: E PTS: 1 DIF: Moderate

NAT: AACSB: Analytic | MKTG: Model Strategy | MKTG: Model Customer
MSC: Application
18. After Home Depot gathers information related to its marketing environment, it
attempts to define current environmental changes and predict future changes.
This determines possible opportunities and threats facing the company. It
illustrates the process that is called
a. environmental scanning.
b. survey of environment.
c. marketing.
d. environmental analysis.
e. marketing information processing.

NAT: AACSB: Analytic | MKTG: Model Strategy MSC: Application
19. Marketers who attempt to influence and change the various environmental forces
have a(n) ____ response to these forces.
a. reactive
b. inactive
c. variable
d. positive
e. proactive

20. Toyota has developed aluminum car bodies that are 100 percent recyclable and
light enough to help conserve fuel. What kind of response is this to environmental
forces?
a. Proactive
b. Competitive
c. Reactive
d. Inactive
e. Controllable

21. Although Matt's company engages in environmental scanning and analysis, he

feels more comfortable changing his policies and strategies to adapt to
environmental forces rather than trying to influence these forces. Matt has a(n)
____ approach to marketing environmental forces.
a. inactive
b. reactive
c. proactive
d. negative
e. variable
ANS: B PTS: 1 DIF: Moderate

22. Marketers who view political forces as being beyond their control are taking a(n)
____ response toward these forces.
a. reactive
b. aggressive
c. proactive
d. competitive
e. liberal

NAT: AACSB: Communication | MKTG: Model Strategy MSC: Comprehension
23. When marketers define their target market, they simultaneously establish a set of
a. technologies.
b. monopolies.
c. competitors.
d. government regulations.
e. sociocultural forces.
ANS: C PTS: 1 DIF: Moderate

24. Companies that market products with similar features, benefits, and prices to the
same customer group are known as ____ competitors.
a. generic
b. product
c. brand
d. total budget
e. monopolistic
ANS: C PTS: 1 DIF: Difficult

MSC: Knowledge
25. Which of the following would represent a brand competitor for Ford's Escape
Hybrid sport utility vehicle?
a. Honda Pilot
b. Toyota's Highlander Hybrid
c. Honda Civic Hybrid
d. Taxi ride
e. Chevrolet Tahoe rented from Avis
ANS: B PTS: 1 DIF: Difficult

MSC: Application
26. ____ competitors provide very different products that satisfy the same basic
customer need.
a. Brand
b. Generic
c. Total budget
d. Product
e. Marketing

MSC: Knowledge
27. ____ competitors are those that compete in the same product class, but their
products have different features, benefits, and prices.
a. Total budget
b. Generic
c. Brand
d. Product
e. Price

MSC: Knowledge
28. Which of the following is not at the generic competitor level for Ford's Expedition
sport utility vehicle?
a. Saturn SKY
b. Enterprise car rental
c. Harley Davidson motorcycle
d. Schwinn mountain bike
e. Taxi cab ride

NAT: AACSB: Analytic | MKTG: Model Marketing Plan MSC: Application
29. Marketers primarily focus their environmental analysis on ____ competitors.

a. brand
b. product
c. total budget
d. generic
e. monopolistic
MSC: Application
30. In today's marketing environment, competitors can take on many forms. For
example, Diet Coke can be seen as a competitor to Wrigley's Double Mint
chewing gum. In this circumstance, these two products are described as ____
competitors.
a. generic
b. product
c. total budget
d. monopolistic
e. pure

31. Due to limited resources, a consumer decided to serve Hawaiian Punch to a New
Year's Eve party crowd instead of Korbel champagne. As a result of this action,
Korbel and Hawaiian Punch can be viewed as ____ competitors.
a. generic
b. product
c. total budget
d. oligopolistic
e. pure
ANS: A PTS: 1 DIF: Difficult

32. Companies that compete for the same limited financial resources of the same
customers are known as ____ competitors.
a. oligopolic
b. total budget
c. generic
d. product
e. brand

MSC: Knowledge
33. ____ competitors are the most significant to marketers because buyers see the
different products of these firms as direct substitutes for each other.
a. Oligopolic
b. Total budget
c. Generic
d. Product
e. Brand

NAT: AACSB: Analytic | MKTG: Model Marketing Plan MSC: Knowledge
34. The four major competitive structures are

a. monopolies, oligopolies, oligopolistic
monopolies, and pure competition.
b. pure competition, heavy
competition, moderate competition,
and light competition.
c. brand, product, total budget, and
generic.
d. oligopolies, monopolies,
monopolistic competition, and pure
competition.
e. monopolies, limited competition,
oligopolistic competition, and pure
competition.
ANS: D PTS: 1 DIF: Difficult

35. What type of competitive structure exists when a firm produces a product that
has no close substitutes?
a. Monopoly
b. Oligopoly
c. Monopolistic competition
d. Pure competition
e. Mixed competition

36. The American automobile industry used to be dominated by "The Big Three,"
including General Motors, Ford, and Chrysler. However, as many more foreign
competitors began influencing this market, the American companies had to
modify and differentiate their products. The automobile industry moved from a(n)
____ structure to a(n) ____ structure.
a. monopolistic; oligopolistic
b. oligopolistic; pure competition
c. oligopolistic; monopolistic
competition
d. monopolistic competition; pure
competition
e. monopolistic; monopolistic
competition

NAT: AACSB: Reflective Thinking | MKTG: Model Strategy MSC: Application
37. The D-Lite Corporation produces a unique type of light bulb that is used in
refrigerator manufacturing. D-Lite is the only maker of this light bulb, and there
are no close substitutes for it. In this case, the D-Lite Corporation would be
a. an oligopoly.
b. a monopoly.
c. involved in monopolistic
competition.
d. involved in perfect competition.
e. involved in a perfect oligopoly.
ANS: B PTS: 1 DIF: Easy

38. Which of the following firms would be most likely to have a monopoly for its
competitive environment?
a. TimeWarner Cable TV
b. Mitchell Trucking
c. Continental Airlines
d. Rogers Plumbing
e. Chemlawn Lawn Care

39. When a firm has many potential competitors and tries to develop a marketing
strategy to differentiate its products from the competitors' products, a(n) ____
structure exists in the competitive environment.
a. oligopoly
b. monopoly
c. pure competition
d. oligopolistic competition
e. monopolistic competition

40. The best approach for a company to take when monitoring its competitors is
a. watching for increases and
decreases in competitors' prices and
match them.
b. analyzing all information that is
readily available about competitors.
c. sending employees to competitors'
offices and factories to observe their
actions.
d. developing a system for gathering
ongoing information about
competitors.
e. reading important business
publications such as The Wall Street
Journal.
ANS: D PTS: 1 DIF: Easy REF: p. 68

NAT: AACSB: Communication | CBE: Model Research MSC: Knowledge
41. Which of the following attributes of a Toyota Scion would be most appropriate to
emphasize in television commercials during an economic recession?
a. Stereo system
b. Prestige
c. Durability
d. Leg room
e. Sporty design

NAT: AACSB: Analytic | MKTG: Model Strategy | MKTG: Model Promotion
MSC: Application
42. In a period of economic recovery, the best marketing strategy for FedEx would be
characterized by which of the following features?
a. Flexibility
b. Aggressiveness
c. Austerity
d. Retrenchment
e. Boldness

43. Assuming that inflation is low, high buying power characterizes the ____ stage of
the business cycle.
a. prosperity
b. depression
c. recovery
d. succession
e. recession

44. During which stage of the business cycle is unemployment low and total income
relatively high?
a. Repression
b. Prosperity
c. Recovery
d. Recession
e. Depression

45. Total buying power declines during periods of economic

a. recovery.
b. prosperity.
c. recession.
d. uncertainty.
e. expansion.

46. Consumers begin to become more price and value conscious during periods of
a. inflation.
b. prosperity.
c. recession.
d. depression.
e. recovery.

NAT: AACSB: Communication | MKTG: Model Customer MSC: Knowledge
47. Consumer confidence and willingness to spend begins to increase during periods
of ____, and marketers must remain very flexible to make the necessary
adjustments.
a. depression
b. prosperity
c. recovery
d. growth
e. recession
ANS: C PTS: 1 DIF: Moderate REF: p. 69

NAT: AACSB: Communication | CBE: Model CustomerMSC: Knowledge
48. The strength of a person's "buying power" depends on economic conditions and
a. level of income.
b. size of resources that can be traded
in an exchange.
c. how much a consumer will buy.
d. a consumer's spending pattern.
e. levels of median wealth.

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

a. It accurately predicts future buying
power.
b. It increases current buying power.
c. It is what is left after taxes and
savings to buy luxuries with.
d. It is a ready source of buying power.
e. It is essential for forecasting future
business trends.
ANS: D PTS: 1 DIF: Moderate REF: p. 69

NAT: AACSB: Analytic | CBE: Model Customer MSC: Comprehension
50. The amount of money received through wages, rents, investments, pensions, and
subsidies is called
a. income.
b. wealth.
c. discretionary income.
d. prosperity.
e. credit.

51. If Toby Roberts has an income of $30,000, pays $6,000 in rent, $1,200 in utilities,
and $5,000 in taxes per year, his disposable income is
a. $7,800.
b. $14,000.
c. $9,000.
d. $25,000.
e. $20,000.

NAT: AACSB: Analytic | MKTG: Model Customer MSC: Application
52. Which category of income are marketers most interested in?

a. Wealth
b. Disposable income
c. Discretionary income
d. Total income
e. Extra income

53. What is the most important factor in distinguishing disposable income from
income?
a. Taxes
b. Housing
c. Employment levels
d. Consumer spending
e. Saving

54. Discretionary income is associated with all of the following except

a. automobiles.
b. education.
c. pets.
d. furniture.
e. food.

55. Heidi decided to spend some of her saved money on tickets to a Cold Play
concert coming to town, and now she is planning on buying a new outfit for the
concert. What type of resources is Heidi making decisions about?
a. Disposable income
b. Wealth
c. Buying power
d. Discretionary income
e. Savings income

56. The accumulation of past income, natural resources, and financial resources is
known as
a. income.
b. collected income.
c. credit.
d. wealth.
e. savings.
ANS: D PTS: 1 DIF: Easy

57. When using credit to make purchases, consumers are

a. decreasing current buying power
and increasing future buying power.
b. increasing their present
discretionary income to extend
purchasing power.
c. putting themselves at significant
risk of financial disaster.
d. forgoing the accumulation of wealth
to increase current income.
e. increasing current buying power at
the expense of future buying power.

NAT: AACSB: Analytic | MKTG: Model Customer MSC: Knowledge
58. Texas rice farmers wish to get their product into the Japanese market but are
hindered by a complex maze of regulations imposed by the Japanese
government. The farmers are most likely to attempt to influence which aspect of
the marketing environment?
a. Sociocultural
b. Technological
c. Competitive
d. Economic
e. Political

59. Textile companies historically face issues concerning the use of child labor in
foreign countries and the various regulations created concerning this labor. The
type of marketing environment forces executives for these companies are most
likely to try to influence are ____ forces.
a. economic
b. competitive
c. political
d. environmental
e. sociocultural

60. Which of the following statements is true?

a. Political officials can not influence
how much a government agency
purchases and from whom.
b. A recent U.S. Supreme Court
decision nullified federal laws that
restricted political campaign fund
contributions for corporate labor
unions.
c. Company sponsored political
advertising can only focus on topics
and not on candidates.
d. Political officials can not accept
direct corporate campaign
contributions.
e. Companies can not participate in
the political process through
lobbying.

NAT: AACSB: Reflective Thinking | MKTG: Model Strategy MSC: Comprehension
61. Which of the following actions is illegal?

a. Political officials influencing how
much a government agency
purchases and from whom.
b. Corporate contributions to
candidates.
c. Corporate contributions to elected
officials.
d. Political officials helping businesses
secure foreign markets.
e. Paying political officials not to
enforce a particular law.
NAT: AACSB: Analytic | MKTG: Model Strategy MSC: Comprehension
62. If all the gas stations in a city collaborated to determine what gas prices should
be charged, they would be violating the
a. Wheeler-Lea Act.
b. Clayton Act.
c. Robinson-Patman Act.
d. Sherman Antitrust Act.
e. Celler-Kefauver Act.

NAT: AACSB: Communication | MKTG: Model Pricing MSC: Application
63. Procompetitive laws are those designed to

a. preserve competition.
b. protect the consumer.
c. ensure product safety.
d. reduce competition.
e. limit business lobbying of
government officials.

64. International Office Supplies Wholesaler charges different prices to its various
customers without any legal justification. This company is in violation of the
a. Sherman Antitrust Act.
b. Wheeler-Lea Act.
c. Lanham Act.
d. Federal Trade Commission Act.
e. Robinson-Patman Act.

NAT: AACSB: Communication | MKTG: Model Pricing MSC: Application
65. Price discrimination is prohibited by the ____ Act.

a. Sherman
b. Wheeler-Lee
c. Robinson-Patman
d. Celler-Kefauver
e. Consumer Goods Pricing

NAT: AACSB: Communication | MKTG: Model Pricing MSC: Knowledge
66. The 1990 Nutritional Labeling and Education Act directly prohibits
a. exaggerated claims made by health
and fitness products.
b. putting the words "cholesterol-free"
on any food package.
c. putting nutritional information on
most food products.
d. exaggerated health claims on food
packages.
e. the use of any health claim on food
packaging.

NAT: AACSB: Communication | CBE: Model Product MSC: Knowledge
67. Consumer protection legislation deals with all of the following legal concerns
except
a. consumer safety.
b. sale of hazardous products.
c. monopolistic practices.
d. information disclosure.
e. health claims on food packages.

68. The Children's Online Privacy Protection Act prohibits websites and Internet
providers from
a. selling products to children under
the age of 18
b. seeking personal information from
children under the age of 13
c. selling products to children under
the age of 12
d. doing research about the buying
habits of children under 15
e. selling products to children under
the age of 15

69. Which of the following are the most frequently sentenced organizational crimes?
a. False advertising and price
discrimination
b. Price discrimination and fraud
c. Fraud and antitrust violations
d. Price fixing and antitrust violations
e. Fraud and price fixing

70. Which of the following agencies would most likely have jurisdiction over the
problem with lead in the paint of children's toys?
a. Consumer Product Safety
Commission
b. Children's Online Protection Act
c. Food and Drug Administration
d. Environmental Protection Agency
e. National Advertising Review Board

NAT: AACSB: Communication | MKTG: Model Product MSC: Knowledge
71. Which of the following agencies regulates marketing activities the most?
a. Environmental Protection Agency
b. Food and Drug Administration
c. Federal Trade Commission
d. Better Business Bureau
e. National Advertising Review Board

72. Which of the following industries is most commonly regulated by state regulatory
agencies?
a. Automobile manufacturers
b. Cigarette producers
c. Clothing manufacturers
d. Television networks
e. Utility companies

73. In its advertisements for Bud Light beer, Anheuser-Busch has decided to include a
statement saying "Know when to say when." This is an example of which one of
the following types of regulatory forces affecting marketing efforts?
a. Federal regulation
b. State regulation
c. City regulation
d. Self-regulation
e. Social regulation

74. The Pharmaceutical Research and Manufacturers of America sets guidelines for its
member firms to follow regarding the use of unethical practices. Thus, it is
engaging in
a. legislation.
b. lobbying.
c. self-regulation.
d. environmental scanning.
e. trade restraint.

75. Jared Bledsoe hires a local landscape firm to plant trees and shrubs in his yard.
The firm plants mostly dead plants but refuses to return Jared's money or replace
the dead items. Jared's best course of action would be to contact the
a. police.
b. Federal Trade Commission.
c. Sherman Commission.
d. Better Business Bureau.
e. federal district court.

NAT: AACSB: Reflective Thinking | CBE: Model Customer MSC: Application
76. The Better Business Bureau is probably the best-known

a. nongovernmental regulatory group.
b. state-operated enforcement agency.
c. national evaluator of
advertisements.
d. federal regulatory group.
e. self-regulatory unit operating at the
national level.

77. In its advertisements, Johnson's Hair Care Products claims that its KLTR-14 gel will
restore the hair of bald men. Members of the NARB believe the claim is
unsupportable. What action can the NARB take?
a. Force Johnson's to stop running the
advertisement.
b. File a complaint with the Federal
Trade Commission.
c. Fine Johnson's for each time the ad
appears.
d. Sue Johnson's Hair Care Products in
federal court.
e. Sue Johnson's Hair Care Products in
state court.

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

a. Self-regulatory programs are usually
less expensive than governmental
regulatory programs.
b. Self-regulatory programs' guidelines
generally are more realistic and
operational.
c. Nongovernmental self-regulatory
programs have neither the tools nor
the authority to enforce guidelines.
d. Self-regulatory guidelines generally
are stricter than governmental
regulatory programs.
e. When a trade association sets up
industry guidelines, some firms that
are in the industry but not in the
trade association do not follow the
guidelines.

NAT: AACSB: Analytic | MKTG: Model Strategy MSC: Comprehension
79. Which of the following is an advantage that self-regulatory agencies such as the
BBB and the NARB have over governmental laws and regulatory agencies?
a. Firms must strictly abide by the
rulings of self-regulatory agencies.
b. Establishment and implementation
are usually less expensive.
c. They have better tools to enforce
their rulings.
d. Guidelines are often stricter and
create greater compliance from
firms.
e. Money is very rarely an issue in
enforcing decisions of self-
regulatory agencies.

80. When a firm continues to violate what the Better Business Bureau believes to be
good business practices, what is one of the main actions the bureau will take?
a. Lead a consumer boycott of the
business.
b. Sue the chief executive of the
business.
c. Impose fines on the
owners/managers of the business.
d. Support legal ordinances against the
business.
e. Warn consumers of the unfair
practices.
ANS: E PTS: 1 DIF: Difficult

81. What national self-regulatory organization screens ads?

a. Federal Advertising Review Division
b. National Advertising Review Board
c. Federal Communications
Commission
d. Consumer Federation of America
e. Better Business Bureau

82. Technology is
a. the application of scientific
knowledge to build products that
customers desire.
b. the application of knowledge and
tools to solve problems and perform
tasks more efficiently.
c. applied sciences.
d. one of the weakest marketing
environment forces.
e. the result of research performed
primarily by universities.

NAT: AACSB: Communication | MKTG: Model Technology MSC: Knowledge
83. Newsweek enhances its visibility to readers by making its magazine available on
the Internet. Newsweek is capitalizing on which environmental force?
a. Economic
b. Competitive
c. Political
d. Legal and regulatory
e. Technological

NAT: AACSB: Technology | MKTG: Model Online/Computer MSC: Application
84. The broad nature of technology as it moves through society is referred to as

a. reach.
b. dynamics.
c. environment
d. self-sustaining.
e. impact.

NAT: AACSB: Technology | MKTG: Model Technology MSC: Knowledge
85. Which of the following is the best example of utilizing technology to improve
consumer relationships?
a. Waiters recording orders on
handheld computers
b. Surveying customers to determine
their needs
c. Responding to changes in
competitors' prices
d. Introducing stringent package
standards
e. Requiring dolphin-safe tuna

NAT: AACSB: Technology | MKTG: Model Online/Computer MSC: Comprehension
86. Technology assessment is
a. measuring how much technology
has been incorporated into an
organization.
b. trying to foresee the effects of new
products and processes on the
firm's operation and on society in
general.
c. assessing how much technology one
wants to incorporate into a company
in the future.
d. judging how a firm's products affect
society.
e. weighing the cost of new technology
to determine whether a firm can
afford to use it.

87. When Cisco Systems attempts to anticipate the effect of new products and
processes on its own innovations, other business organizations, and society in
general, the firm is engaging in
a. product differentiation.
b. monopolistic competition.
c. technology assessment.
d. distinctive promotional methods.
e. innovative marketing.

NAT: AACSB: Communication | MKTG: Model Technology MSC: Application
88. Many health care companies are making adaptations to meet the needs of an
aging population as the demand for medical services and products such as
diabetes supplies increases. This change in marketing strategy is best explained
by a change in
a. demographics.
b. cultural values.
c. income levels.
d. consumerism.
e. subcultures.

NAT: AACSB: Diversity | MKTG: Model Customer MSC: Comprehension
89. People for the Ethical Treatment of Animals (PETA) have demonstrated against the
sale of coats made of animal furs. PETA's efforts to change shoppers' attitudes
represent a ____ force for fur retailers.
a. technological
b. political
c. sociocultural
d. self-regulation
e. strategic

NAT: AACSB: Analytic | CBE: Model Customer MSC: Application
90. By the turn of the twentieth century, the population of the United States had
shifted to three large racial and ethnic groups. These groups are
a. blacks, Hispanics, and whites.
b. Asians, blacks, and whites.
c. Asians, blacks, and Hispanics.
d. blacks, Indians, and whites.
e. Hispanics, Indians, and whites.

91. In the near future, what subculture will become the second largest group in the
United States?
a. Whites
b. African Americans
c. Asians
d. Hispanics
e. Native Americans

92. The Coca-Cola Company has recognized the significant increase in population
diversity within the U.S. soft-drink market. Which one of the following best
illustrates the company's integration of this knowledge into its marketing
strategy?
a. Ads featuring nostalgic Americana
b. Bonus coupons in Coca-Cola twelve-
packs
c. Ads featuring Hispanic actors and
Tejano music
d. Ads in The New Yorker and Reader's
Digest
e. Ads aimed at children

NAT: AACSB: Diversity | MKTG: Model Customer MSC: Application
93. Organizations that provide smoke-free environments or low-fat products are

responding to changes in
a. technology.
b. the legal environment.
c. demographics.
d. cultural values.
e. political forces.

NAT: AACSB: Diversity | MKTG: Model Customer MSC: Comprehension
94. Many well-known restaurants and corporations are changing to a completely

smoke-free environment, and fewer restaurants offer smoking and nonsmoking
sections. These firms are responding to changes in
a. federal law.
b. cultural values.
c. demographics.
d. consumerism.
e. technological forces.

NAT: AACSB: Communication | MKTG: Model Customer MSC: Application
95. Consumerism is a
a. diverse group of individuals and
organizations opposed to foreign
producers that sell products in the
United States that are much
cheaper than those produced by
U.S. manufacturers.
b. social movement that is trying to
encourage consumer satisfaction.
c. social movement that is
reorganizing the Council of Better
Business Bureaus.
d. diverse group of individuals and
organizations attempting to protect
the rights of consumers.
e. social movement that provides
consumers with means for
expressing satisfaction and
expressing their gratitude to
producers.

96. Employees, customers, communities, and investors are all considered ____ in
relation to marketing.
a. responsibilities
b. stakeholders
c. shareholders
d. constituents
e. owners

MSC: Knowledge
97. When operating on a daily basis, employees and managers at Bank of America
consider the perspectives of all individuals and groups that might be affected by
their decisions. This is known as
a. a philanthropic position.
b. marketing citizenship.
c. a stakeholder orientation.
d. community relations.
e. social responsibility.

MSC: Application
98. Which of the following is not a dimension of social responsibility and marketing
citizenship?
a. Economic
b. Ethical
c. Legal
d. Technological
e. Philanthropic

99. Sometimes business must find a balance between society's demand for social
responsibility and investors' desires for profits. This is an example of a(n) ____
responsibility.
a. ethical
b. legal
c. cost
d. philanthropic
e. economic

NAT: AACSB: Analytic | AACSB: Ethics | MKTG: Model Strategy
MSC: Knowledge
100. Sometimes business must find a balance between society's demand for social
responsibility and investors' desires for profits. This is an example of a(n) ____
responsibility.
a. ethical
b. legal
c. cost
d. philanthropic
e. economic

NAT: AACSB: Analytic | AACSB: Ethics | MKTG: Model Strategy
MSC: Knowledge
101. All companies have a responsibility to ____ so they can provide a return on
investment to their owners and investors, create jobs for the community, and
contribute goods and services to the economy.
a. offer the lowest price
b. be profitable
c. obey their customers
d. provide the largest selection
possible
e. pay employees more than minimum
wage

102. Kaitlyn understands that her local catering business has certain responsibilities to
society. She knows that she must abide by the laws that apply to her business
and try to make a profit. What are the other obligations Kaitlyn should know?
a. Ethical and moral
b. Economic and ethical
c. Philanthropic and legal
d. Environmental and ethical
e. Ethical and philanthropic

NAT: AACSB: Reflective Thinking | AACSB: Ethics | MKTG: Model Strategy
MSC: Application
103. As a firm fulfills its basic economic responsibilities, it must simultaneously

a. treat its employees equitably.
b. follow a code of business ethics.
c. utilize green marketing techniques.
d. have a philanthropic focus.
e. obey laws and regulations.

104. Marketing ethics

a. refers to laws and regulations that
govern marketing.
b. refers to principles and standards
that define acceptable conduct in
marketing.
c. maximizes an organization's
positive impact and minimizes its
negative impact on society.
d. is most important for advertising
agencies.
e. applies well-defined rules for
appropriate marketing behavior.

105. The most basic principles of marketing ethics are

a. philanthropic responsibilities.
b. economic responsibilities.
c. universally accepted behaviors.
d. written as laws and regulations.
e. included in the marketing code of
ethics.

106. Cameron Inc. is a very profitable automobile repair shop. The company is well
known for its great service and involvement in the community, but it fails to
properly dispose of its used oil as outlined in environmental regulations. Cameron
is failing in its ____ responsibilities.
a. legal
b. ethical
c. economic
d. philanthropic
e. strategic

107. Cameron Inc. is a very profitable automobile repair shop. The company is well
known for its great service and involvement in the community, but it fails to
properly dispose of its used oil as outlined in environmental regulations. Cameron
is failing in its ____ responsibilities.
a. legal
b. ethical
c. economic
d. philanthropic
e. strategic

108. At the top of the pyramid of social responsibility for business are ____
responsibilities.
a. ethical
b. legal
c. cost
d. philanthropic
e. economic
ANS: D PTS: 1 DIF: Easy REF: p. 96

NAT: AACSB: Communication | CBE: Model Strategy MSC: Knowledge
109. McDonald's supports and funds Ronald McDonald houses for the families of
terminally-ill children to stay in to be near their loved ones. McDonald's action
demonstrates the fulfillment of ____ responsibility.
a. legal
b. society
c. philanthropic
d. economic
e. ethical

110. Actions that promote human health and welfare address the ____ dimension of the
pyramid of social responsibility.
a. philanthropic
b. legal
c. ethical
d. economic
e. social

111. The practice of linking a firm's product marketing to a particular social cause on
an ongoing or short-term basis is known as
a. economic responsibility.
b. social responsibility.
c. ethical marketing.
d. cause-related marketing.
e. corporate benevolence.

MSC: Knowledge
112. If Ben and Jerry's were to donate 5 percent of every ice cream purchase to
shelters for victims of domestic abuse for one month, this would be an example
of
a. strategic philanthropy.
b. ethical responsibility.
c. economic responsibility.
d. green marketing.
e. cause-related marketing.

113. The close relationship of Home Depot's philanthropic initiatives and its business
goals is an example of
a. strategic philanthropy.
b. strategic ethics.
c. cause-related marketing.
d. strategic marketing.
e. environmental philanthropy.

MSC: Knowledge
114. Who are the primary recipients of the benefits of strategic philanthropy?
a. Employees and investors
b. Companies and society
c. Primary stakeholders
d. Managers and companies
e. Society and communities

115. Various stakeholders and ____ determine the acceptable standards of conduct
involving ethics.
a. the organizations' ethical climate
b. the federal government
c. various self-regulating bodies
d. governmental agencies
e. the industry leaders' ethics

NAT: AACSB: Communication | AACSB: Ethics | CBE: Model Strategy
MSC: Knowledge
Scenario 3.1
Use the following to answer the questions.
Meyers' Sporting Goods, a national chain, has been doing business with Soljur
Sports, a manufacturer of skateboards, for several years. Recently, it came to the
attention of Meyers' financial director that the average cost per Soljur Sports
skateboard had substantially increased over that of the previous year.
A corporate attorney was notified and began to look into the situation. The
attorney found that Soljur Sports was selling a similar number of skateboards to a
competitive chain for $10 less per skateboard. The attorney for Meyers' Sporting
Goods immediately filed a complaint with the Federal Trade Commission.
116. Refer to Scenario 3.1. Suppose that the Soljur Sports company was actually
discriminating against Meyer Sporting Goods with its price increase. Which of the
following acts prohibits this type of business behavior?
a. Sherman
b. Wheeler-Lee
c. Robinson-Patman
d. Celler-Kefauver
e. Consumer Goods Pricing

NAT: AACSB: Analytic | MKTG: Model Pricing MSC: Application
117. Refer to Scenario 3.1. If the Federal Trade Commission believes that Soljur
Sporting Goods is acting in violation of the law, the first move for the FTC is to
a. issue a cease-and-desist order.
b. issue a complaint stating that the
business is in violation of the law.
c. seek a monetary penalty.
d. issue negative publicity about the
company.
e. contact the sporting goods
manufacturers association

118. Refer to Scenario 3.1. A regular customer of Meyers Sporting Goods feels that
some of its advertisements are deceptive. He responded to an ad for sale
skateboards one hour after the store opened and found that none were left.
Where should he file a complaint?
a. Federal Advertising Commission
b. National Advertising Review Board
c. Consumer Product Safety
Commission
d. Better Business Bureau
e. Office of Consumer Affairs

NAT: AACSB: Analytic | CBE: Model Customer MSC: Application
119. Refer to Scenario 3.1. Suppose that a customer has a complaint against Meyers
Sporting Goods Stores. He files a complaint with the Better Business Bureau.
What action could the BBB take against Meyers if the complaint was
substantiated and Meyers did not change the offending practice?
a. Issue a cease-and-desist order.
b. Seek a $10,000 monetary penalty.
c. Issue a warning to consumers
through the local newspaper.
d. Order Meyers to make restitution.
e. Seek a $5,000 monetary penalty.

Scenario 3.2
Use the following to answer the questions.
A new U.S. automobile company, Specialty Motors, was established in 2004. In

2008, a recession caused disposable income to decline, and the annual amount of
dollars spent by consumers for automobiles dropped drastically. Specialty Motors
faced the problem of trying to determine whether the economy would turn toward
prosperity or toward depression. No matter what happened, Specialty Motors was
also worried about an impending global steel shortage, which would make a big
difference in its future marketing plans. The economy might recover from the
recession, but the automobile makers might be forced to ask consumers to curtail
consumption just when the hope of a better year was finally in sight. All in all, the
future looked dismal for Specialty Motors.
120. Refer to Scenario 3.2. Specialty Motors views Toyota Corolla and Honda Accord as
____ competitors.
a. generic
b. product
c. total budget
d. monopolistic
e. brand

121. Refer to Scenario 3.2. In what type of competitive structure is Specialty Motors
operating?
a. Monopoly
b. Oligopoly
c. Monopolistic competition
d. Perfect competition
e. Monopsony

122. Refer to Scenario 3.2. When Specialty Motors is operating during a recessionary
period, its promotion efforts should stress
a. low cost.
b. value and utility.
c. the styling of its cars.
d. the status of owning a new car.
e. the variety of colors from which to
select.

NAT: AACSB: Analytic | MKTG: Model Promotion MSC: Application
123. Refer to Scenario 3.2. If the economy recovers in the future and enters the
prosperity phase of the economic cycle, what actions should Specialty Motors
take?
a. Emphasize the value and basic
functionality of their products.
b. Develop more distribution outlets
and increase promotion.
c. Significantly reduce advertising
expenditures to create an exclusive
image.
d. Decrease production of current
product lines and slow development
on new product lines.
e. Significantly reduce the prices on
the company's product offerings.

NAT: AACSB: Analytic | MKTG: Model Distribution | MKTG: Model Promotion
MSC: Application
124. Refer to Scenario 3.2. The income a consumer would use to purchase a Specialty
Motors automobile is considered ____ income.
a. discretionary
b. buying power
c. disposition
d. consumer spending
e. comprehensive spending

TRUE/FALSE
125. Environmental analysis is the process of collecting information about forces in the
marketing environment.
ANS: F PTS: 1 DIF: Easy

126. Environmental analysis helps managers identify potential threats and

opportunities linked to environmental changes.
ANS: T PTS: 1 DIF: Easy

127. Brand competitors market products with similar features, benefits, and prices to
the same customers.

MSC: Knowledge
128. Product competitors provide very different products that solve the same problem
or satisfy the same basic customer need.
ANS: F PTS: 1 DIF: Moderate

MSC: Knowledge
129. A monopoly exists when a firm with many potential competitors attempts to
develop a marketing strategy to differentiate its products.

130. An oligopoly exists when a firm offers a product that has no close substitutes,
making the firm the sole source of supply.

131. Pure competition is a common competitive environment.

132. Economic forces determine the size and strength of demand for products.

133. A recession is characterized by extremely high unemployment, very low wages,

minimal total disposable income, and lack of consumer confidence in the
economy.

134. An individual's after-tax income is called his or her discretionary income, which is
used for spending and/or saving.

135. Disposable income is used to pay taxes, spend, and save.

136. The amount of future income already committed to past credit agreements
influences one's ability to use more credit.
ANS: T PTS: 1 DIF: Moderate

137. If a person has buying power, he or she is influenced only by a product's absolute
price.

NAT: AACSB: Analytic | MKTG: Model Customer MSC: Knowledge
138. A factor that affects willingness to spend is general economic conditions.

139. Political and legal forces in the marketing environment are highly interrelated.

140. If political officials have positive feelings toward particular firms or industries,
they are less likely to create or enforce laws and regulations that are unfavorable
for business organizations.

141. A recent U.S. Supreme Court decision has nullified federal laws that restrict
political campaign fund contributions for corporate labor unions.

142. Many laws that directly influence marketing activities were enacted either to
preserve a competitive atmosphere or to protect consumers.

143. The Sherman Antitrust Act, along with several other laws, is a procompetitive law
because it was created to preserve competition.
144. All marketers interpret laws and regulations conservatively and strictly to avoid
violating a vague law.

145. Because of overlapping areas of responsibilities of regulatory agencies, confusion

and conflict regarding jurisdiction of marketing activities are common.

146. The Food and Drug Administration influences marketing activities the most.

147. State and local regulatory agencies usually do not establish and enforce
regulations that conflict with the actions of national regulatory agencies.

148. Numerous self-regulatory programs have been created to stop or stall the
development of laws and government regulatory groups that would regulate
marketing practices.

NAT: AACSB: Analytic | CBE: Model Strategy MSC: Knowledge
149. Although numerous regulatory forces arise from governmental sources,

nongovernmental regulatory forces may also affect marketing decisions.

150. A good example of a government regulatory group at the local level is the Better
Business Bureau.

151. All members of an industry are bound to follow trade association guidelines.

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

153. Technological developments have a direct impact on creating and maintaining a

marketing mix.

154. Technological changes do not directly affect what, how, when, and where
products are marketed.

155. Technology affects the types of products offered to consumers.

NAT: AACSB: Technology | MKTG: Model Product | MKTG: Model Technology
MSC: Knowledge
156. Technology can help marketers become more productive.

157. Firms always adopt and use new technology.

158. Through technology assessment, managers try to foresee the effects of new
products and processes on the firm's operations and on society.

NAT: AACSB: Analytic | CBE: Model Technology | CBE: Model Product
MSC: Knowledge
159. The three major components of sociocultural forces are demographic and
diversity characteristics, cultural values, and consumerism.

160. The number of single men and women living alone is declining.

161. An increasingly diverse cultural base in the United States means that marketers
face increasingly diverse consumer markets.

162. Changes in values have little effect on people's needs for products.

163. The major source of cultural values is the family.

164. The major forces that make up the consumerism movement are consumer
organizations and business organizations.

165. To achieve their objectives, consumer advocates write letters to companies, lobby
government agencies, broadcast public service announcements, and boycott
companies whose actions they deem irresponsible.

166. Social responsibility is an organization's obligation to maximize its positive impact

and minimize its negative impact on society.

167. Four dimensions of social responsibility are economic, legal, ethical, and
philanthropic.

168. Marketers' contributions of resources to community causes such as education,

recreation, and others illustrate social responsibility on a community-relations
level.

169. Strategic philanthropy involves linking a firm's products to a particular social

cause on a sort-term basis.

170. An organization can rid itself of "bad apples" through screening techniques and
enforcement of its code of conduct.

171. Codes of conduct (ethics) are formalized rules and standards that describe what
the company expects of its employees in terms of ethical behavior.

172. Codes of conduct (ethics) must be detailed enough to take every situation into
account.

173. Marketing ethics refers to principles and standards that define acceptable
conduct in marketing.

174. At the most basic level of marketing citizenship, marketers have an obligation to
contribute funds to philanthropic causes.


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Chapter 3The Marketing Environment, Social Responsibility, and

PTS: 1 DIF: Moderate

2. Explain the differences between the competitive structures of a monopoly and an

PTS: 1 DIF: Moderate

3. Explain the difference between procompetitive legislation and consumer

PTS: 1 DIF: Easy

4. Describe several ways in which federal agencies influence marketing activities.

PTS: 1 DIF: Easy

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

7. Define and describe the importance of social responsibility in marketing.

PTS: 1 DIF: Moderate

8. Provide an overview of important social responsibility issues in marketing, and

PTS: 1 DIF: Moderate

9. List and describe important ethical issues in marketing.

PTS: 1 DIF: Easy

PTS: 1 DIF: Moderate

11. To monitor changes in the marketing environment effectively, marketers must

ANS: A PTS: 1 DIF: Easy

12. Collecting information from secondary sources such as business, government,

ANS: C PTS: 1 DIF: Easy

ANS: D PTS: 1 DIF: Moderate

14. Dell Computer collects information about a wide variety of competitive,

ANS: A PTS: 1 DIF: Moderate

15. According to the textbook, a manager's duties in an environmental analysis

ANS: A PTS: 1 DIF: Moderate

ANS: E PTS: 1 DIF: Easy

ANS: E PTS: 1 DIF: Moderate

ANS: D PTS: 1 DIF: Moderate

ANS: E PTS: 1 DIF: Moderate

ANS: A PTS: 1 DIF: Moderate

21. Although Matt's company engages in environmental scanning and analysis, he

ANS: B PTS: 1 DIF: Moderate

ANS: A PTS: 1 DIF: Moderate

ANS: C PTS: 1 DIF: Moderate

ANS: C PTS: 1 DIF: Difficult

ANS: B PTS: 1 DIF: Difficult

ANS: B PTS: 1 DIF: Moderate

ANS: D PTS: 1 DIF: Moderate

ANS: A PTS: 1 DIF: Moderate

29. Marketers primarily focus their environmental analysis on ____ competitors.

ANS: C PTS: 1 DIF: Difficult

ANS: A PTS: 1 DIF: Difficult

ANS: B PTS: 1 DIF: Difficult

ANS: E PTS: 1 DIF: Easy

34. The four major competitive structures are

ANS: D PTS: 1 DIF: Difficult

ANS: A PTS: 1 DIF: Moderate

ANS: C PTS: 1 DIF: Moderate

ANS: B PTS: 1 DIF: Easy

ANS: A PTS: 1 DIF: Moderate

ANS: E PTS: 1 DIF: Easy

ANS: D PTS: 1 DIF: Easy REF: p. 68

ANS: C PTS: 1 DIF: Easy

ANS: A PTS: 1 DIF: Moderate

ANS: A PTS: 1 DIF: Easy

ANS: B PTS: 1 DIF: Easy

45. Total buying power declines during periods of economic

ANS: C PTS: 1 DIF: Easy

ANS: C PTS: 1 DIF: Easy

ANS: C PTS: 1 DIF: Moderate REF: p. 69

ANS: B PTS: 1 DIF: Moderate

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