Question 1

The inflation rate experienced by the United States in recent years was just about the highest in the world.

Accepted Answer

A) True 
 B)False

Question 2

The Wheeler-Lea Amendment specifically aims at:

Accepted Answer

A)  product warranties. 
B)  product safety. 
C)  unfair or deceptive practices. 
D)  tying and exclusive dealing contracts. 
E)  mergers and acquisitions. 
A)  product warranties. 
B)  product safety. 
C)  unfair or deceptive practices. 
D)  tying and exclusive dealing contracts. 
E)  mergers and acquisitions.

Question 3

American economic and legislative thinking is based on the idea that

Accepted Answer

A)  encouraging competition harms public interest. 
B)  competition among many small firms helps the economy. 
C)  attempts by business to limit competition aids large firms during recessions. 
D)  the economic environment provides a base for the technological environment. 
E)  laws should protect companies and not consumers. 
A)  encouraging competition harms public interest. 
B)  competition among many small firms helps the economy. 
C)  attempts by business to limit competition aids large firms during recessions. 
D)  the economic environment provides a base for the technological environment. 
E)  laws should protect companies and not consumers.

Question 4

Which of the following statements about the competitive environment is FALSE?

Accepted Answer

A)  Competition-free environments are rare. 
B)  Marketing managers should choose strategies that avoid head-on competition. 
C)  A firm that has a marketing mix that its target market sees as better than its competitors' has a competitive advantage. 
D)  Over the long run, most product-markets tend toward monopolistic competition. 
E)  In a competitor analysis, the firm's first step should be to identify all potential competitors. 
A)  Competition-free environments are rare. 
B)  Marketing managers should choose strategies that avoid head-on competition. 
C)  A firm that has a marketing mix that its target market sees as better than its competitors' has a competitive advantage. 
D)  Over the long run, most product-markets tend toward monopolistic competition. 
E)  In a competitor analysis, the firm's first step should be to identify all potential competitors.

Question 5

General Electric's "strategic planning grid":

Accepted Answer

A)  substitutes precise quantitative estimates for management judgment and intuition. 
B)  places too much emphasis on industry attractiveness, almost ignoring the firm's own business strengths. 
C)  emphasizes market share and market growth rate. 
D)  is oversimplified in that it assumes all opportunities must be either "good" or "bad." 
E)  None of the above is a true statement. 
A)  substitutes precise quantitative estimates for management judgment and intuition. 
B)  places too much emphasis on industry attractiveness, almost ignoring the firm's own business strengths. 
C)  emphasizes market share and market growth rate. 
D)  is oversimplified in that it assumes all opportunities must be either "good" or "bad." 
E)  None of the above is a true statement.

Question 6

Which of the following would a firm need to specify BEFORE deciding on its sales promotion objectives?

Accepted Answer

A)  Company objectives. 
B)  Production objectives. 
C)  Product objectives. 
D)  Marketing objectives. 
E)  All of the above. 
A)  Company objectives. 
B)  Production objectives. 
C)  Product objectives. 
D)  Marketing objectives. 
E)  All of the above.

Question 7

Changes in technology can have major impacts on marketing strategy planning.

Accepted Answer

A) True 
 B)False

Question 8

Rising costs and inflation are part of the uncontrollable ______________ environment.

Accepted Answer

A)  technological 
B)  economic 
C)  competitive 
D)  legal 
E)  cultural and social 
A)  technological 
B)  economic 
C)  competitive 
D)  legal 
E)  cultural and social

Question 9

A carpet cleaning firm runs a newspaper ad stating: "Special this month only! Three rooms of carpet cleaned for $39.95!" In each of the next ten months, the firm runs the same ad. A consumer advocacy group files suit against the carpet cleaning firm, contending that the ad is deceptive. The suit charges that the ad makes it seem as though the $39.95 price is a special price that will increase at the end of the month, when in reality, the price never changes. The U. S. federal law governing this type of situation is the:

Accepted Answer

A)  Robinson-Patman Act. 
B)  Clayton Act. 
C)  Sherman Act. 
D)  Magnuson-Moss Act. 
E)  Wheeler-Lea Amendment. 
A)  Robinson-Patman Act. 
B)  Clayton Act. 
C)  Sherman Act. 
D)  Magnuson-Moss Act. 
E)  Wheeler-Lea Amendment.

Question 10

According to the text, which of the following is NOT a basic guideline for setting a firm's objectives?

Accepted Answer

A)  Engaging in specific activities that will perform an economically useful function. 
B)  Identifying its current and prospective competitors. 
C)  Earning enough profit to survive. 
D)  Developing an organization to carry on the business and implement its strategies. 
E)  Ensuring that the firm's activities are socially useful. 
A)  Engaging in specific activities that will perform an economically useful function. 
B)  Identifying its current and prospective competitors. 
C)  Earning enough profit to survive. 
D)  Developing an organization to carry on the business and implement its strategies. 
E)  Ensuring that the firm's activities are socially useful.

Question 11

A total profit approach to evaluating product-market strategic plans

Accepted Answer

A)  will not work if the plans are for the same number of years. 
B)  will be most useful when the plans require very different levels of investment. 
C)  may support a particular plan even if it generates poor profits in some years. 
D)  Both A and B are true. 
E)  None of the above is true. 
A)  will not work if the plans are for the same number of years. 
B)  will be most useful when the plans require very different levels of investment. 
C)  may support a particular plan even if it generates poor profits in some years. 
D)  Both A and B are true. 
E)  None of the above is true.

Question 12

Overall company objectives should:

Accepted Answer

A)  be specific. 
B)  focus on returning some profit to the business. 
C)  be realistic and achievable. 
D)  be compatible with one another. 
E)  all of the above. 
A)  be specific. 
B)  focus on returning some profit to the business. 
C)  be realistic and achievable. 
D)  be compatible with one another. 
E)  all of the above.

Question 13

Placing the interests of individual consumers before the interests of business is nationalism.

Accepted Answer

A) True 
 B)False

Question 14

A business firm's only objective should be to earn enough profit to survive.

Accepted Answer

A) True 
 B)False

Question 15

A marketing manager may ethically and actively seek information about current or potential competitors by

Accepted Answer

A)  searching a firm's public website. 
B)  waiting at a landfill for competitors' trash to find copies of confidential company reports. 
C)  using computer "hackers" to break into a competitor's computer network. 
D)  hiring people from competing firms and then asking them confidential information about the competitor. 
E)  spying on competitors to obtain trade secrets. 
A)  searching a firm's public website. 
B)  waiting at a landfill for competitors' trash to find copies of confidential company reports. 
C)  using computer "hackers" to break into a competitor's computer network. 
D)  hiring people from competing firms and then asking them confidential information about the competitor. 
E)  spying on competitors to obtain trade secrets.

Question 16

When evaluating opportunities, quantitative screening criteria help a manager decide what kind of opportunities to pursue.

Accepted Answer

A) True 
 B)False

Question 17

The number and types of competitors a marketing manager must face--and how they might behave--is called the ______________ environment.

Accepted Answer

A)  cultural 
B)  competitive 
C)  economic 
D)  political 
E)  social 
A)  cultural 
B)  competitive 
C)  economic 
D)  political 
E)  social

Question 18

All of the following are part of the direct market environment EXCEPT:

Accepted Answer

A)  customers. 
B)  competitors. 
C)  the company itself. 
D)  the technological environment. 
A)  customers. 
B)  competitors. 
C)  the company itself. 
D)  the technological environment.

Question 19

AT&T reacted to the popularity of the cellular phone by adding several cellular models to its line of regular phones. Availability and popularity of cellular phones is most likely due to changes in the ____________ environments.

Accepted Answer

A)  political and cultural 
B)  technological and legal 
C)  legal and economic 
D)  social and technological 
E)  all of the above 
A)  political and cultural 
B)  technological and legal 
C)  legal and economic 
D)  social and technological 
E)  all of the above

Question 20

Spying on competitors to obtain trade secrets, raises moral issues but is not illegal.

Accepted Answer

A) True 
 B)False

Exam 3: Evaluating Opportunities in the Changing Marketing Environment

The inflation rate experienced by the United States in recent years was just about the highest in the world.

The Wheeler-Lea Amendment specifically aims at:

American economic and legislative thinking is based on the idea that

Which of the following statements about the competitive environment is FALSE?

General Electric's "strategic planning grid":

Which of the following would a firm need to specify BEFORE deciding on its sales promotion objectives?

Changes in technology can have major impacts on marketing strategy planning.

Rising costs and inflation are part of the uncontrollable ______________ environment.

According to the text, which of the following is NOT a basic guideline for setting a firm's objectives?

A total profit approach to evaluating product-market strategic plans

Overall company objectives should:

Placing the interests of individual consumers before the interests of business is nationalism.

A business firm's only objective should be to earn enough profit to survive.

A marketing manager may ethically and actively seek information about current or potential competitors by

When evaluating opportunities, quantitative screening criteria help a manager decide what kind of opportunities to pursue.

The number and types of competitors a marketing manager must face--and how they might behave--is called the ______________ environment.

All of the following are part of the direct market environment EXCEPT:

AT&T reacted to the popularity of the cellular phone by adding several cellular models to its line of regular phones. Availability and popularity of cellular phones is most likely due to changes in the ____________ environments.

Spying on competitors to obtain trade secrets, raises moral issues but is not illegal.

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Focusing Marketing Strategy With Segmentation and Positioning

Demographic Dimensions of Global Consumer Markets

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers,wholesalers,and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Implementing and Controlling Marketing Plans: Evolution and Revolution

Managing Marketings Link With Other Functional Areas

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Economics Fundamentals

Marketing Arithmetic

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