Question 1

NAFTA:

Accepted Answer

A)  is a free-trade pact between the U.S., Canada, and Mexico. 
B)  is a long-term proposition. 
C)  has eliminated most trade barriers with Mexico in the past 15 years. 
D)  all of the above. 
E)  none of the above. 
A)  is a free-trade pact between the U.S., Canada, and Mexico. 
B)  is a long-term proposition. 
C)  has eliminated most trade barriers with Mexico in the past 15 years. 
D)  all of the above. 
E)  none of the above.

Question 2

Changes in the technological environment could be rejected by the cultural and social environment--through the political and legal environments--even though such changes might help the economic environment.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following would NOT be a marketing strength for a local coffee shop?

Accepted Answer

A)  A well recognized brand. 
B)  A patented coffee blend. 
C)  Established relations with local businesses. 
D)  Access to large amounts of capital from a long-term relationship with a local bank. 
E)  Counter staff that knows and understands customer preferences. 
A)  A well recognized brand. 
B)  A patented coffee blend. 
C)  Established relations with local businesses. 
D)  Access to large amounts of capital from a long-term relationship with a local bank. 
E)  Counter staff that knows and understands customer preferences.

Question 4

Which of the following is NOT an example of how the economic environment may affect marketing strategy planning?

Accepted Answer

A)  The price of bicycles is rising because of inflation. 
B)  Bicycle manufacturers are finding it difficult to sell from Web sites because shipping an individual bike is very expensive. 
C)  Because of exchange rates, imported bikes are cheaper than those made in the United States. 
D)  Both bike manufacturers and bike retailers are adjusting their strategies as a result of the recession. 
E)  The demand for bikes is increasing because consumers are becoming more health conscious. 
A)  The price of bicycles is rising because of inflation. 
B)  Bicycle manufacturers are finding it difficult to sell from Web sites because shipping an individual bike is very expensive. 
C)  Because of exchange rates, imported bikes are cheaper than those made in the United States. 
D)  Both bike manufacturers and bike retailers are adjusting their strategies as a result of the recession. 
E)  The demand for bikes is increasing because consumers are becoming more health conscious.

Question 5

Product warranties are the focus of the ______________ Act.

Accepted Answer

A)  Lemon 
B)  Magnuson-Moss 
C)  Sherman 
D)  Federal Trade Commission 
E)  Robinson-Patman 
A)  Lemon 
B)  Magnuson-Moss 
C)  Sherman 
D)  Federal Trade Commission 
E)  Robinson-Patman

Question 6

A basic idea in the legal environment in the United States is that attempts by business to limit competition are considered contrary to the public interest.

Accepted Answer

A) True 
 B)False

Question 7

GE's Planning Grid approach to evaluating proposed and existing plans and businesses:

Accepted Answer

A)  considers how profitable opportunities are likely to be. 
B)  reflects the corporation's objectives. 
C)  helps managers see why some ideas are supported and others are not. 
D)  can use quantitative data but it is basically a qualitative approach. 
E)  All of the above are true. 
A)  considers how profitable opportunities are likely to be. 
B)  reflects the corporation's objectives. 
C)  helps managers see why some ideas are supported and others are not. 
D)  can use quantitative data but it is basically a qualitative approach. 
E)  All of the above are true.

Question 8

The objectives of a firm should direct the operation of the marketing department, but aren't important to the rest of the business.

Accepted Answer

A) True 
 B)False

Question 9

When Acme Tools was found guilty of giving one of its retailers lower prices on goods of "like grade and quality" without any cost justification, the firm was charged with a violation of the ____________.

Accepted Answer

A)  Sherman Act 
B)  Clayton Act 
C)  Robinson-Patman Act 
D)  Antimerger Act 
E)  Wheeler-Lea Amendment 
A)  Sherman Act 
B)  Clayton Act 
C)  Robinson-Patman Act 
D)  Antimerger Act 
E)  Wheeler-Lea Amendment

Question 10

A first step in evaluating marketing opportunities is to:

Accepted Answer

A)  decide which markets the firm wishes to enter. 
B)  consider the objectives and resources of the firm. 
C)  hire a "futurist" as a marketing consultant. 
D)  estimate market and sales potentials. 
E)  find out if potential competitors are larger. 
A)  decide which markets the firm wishes to enter. 
B)  consider the objectives and resources of the firm. 
C)  hire a "futurist" as a marketing consultant. 
D)  estimate market and sales potentials. 
E)  find out if potential competitors are larger.

Question 11

Which of the following statements about nationalism is NOT TRUE?

Accepted Answer

A)  Nationalism can be limiting in international markets. 
B)  A "Buy American" policy reflects nationalistic attitudes in the United States. 
C)  Nationalistic feelings can block all marketing activity in some international markets. 
D)  Nationalistic feelings always reduce sales. 
E)  Nationalism emphasizes one country's interests before everything else. 
A)  Nationalism can be limiting in international markets. 
B)  A "Buy American" policy reflects nationalistic attitudes in the United States. 
C)  Nationalistic feelings can block all marketing activity in some international markets. 
D)  Nationalistic feelings always reduce sales. 
E)  Nationalism emphasizes one country's interests before everything else.

Question 12

The Sherman Act and the Federal Trade Commission Act:

Accepted Answer

A)  were passed to make it difficult for small companies to win customers away from large companies. 
B)  are not taken seriously, since there are no penalties for violations. 
C)  are quite different, with the FTC Act focusing on stopping deceptive business practices and the Sherman Act focusing on controlling monopolies. 
D)  are just different names for the same thing--a law proposed by Sherman to establish the Federal Trade Commission. 
E)  were passed to protect consumers from abuses by business, rather than to protect some businesses from others who had an "unfair" advantage. 
A)  were passed to make it difficult for small companies to win customers away from large companies. 
B)  are not taken seriously, since there are no penalties for violations. 
C)  are quite different, with the FTC Act focusing on stopping deceptive business practices and the Sherman Act focusing on controlling monopolies. 
D)  are just different names for the same thing--a law proposed by Sherman to establish the Federal Trade Commission. 
E)  were passed to protect consumers from abuses by business, rather than to protect some businesses from others who had an "unfair" advantage.

Question 13

Which of the following U.S. antimonopoly laws deals with "tying contracts" where the sale of one product is contingent on the business customer purchasing other products from the same supplier?

Accepted Answer

A)  Sherman Act (1890) 
B)  Robinson-Patman Act (1936) 
C)  Antimerger Act (1950) 
D)  Wheeler-Lea Amendment (1938) 
E)  Clayton Act (1914) 
A)  Sherman Act (1890) 
B)  Robinson-Patman Act (1936) 
C)  Antimerger Act (1950) 
D)  Wheeler-Lea Amendment (1938) 
E)  Clayton Act (1914)

Question 14

Earning a profit probably should be one of the objectives of a firm, but it should not be the only one.

Accepted Answer

A) True 
 B)False

Question 15

The "continuum of environmental sensitivity" suggests that industrial products are more sensitive to the cultural environments in which they are placed than high-style consumer products.

Accepted Answer

A) True 
 B)False

Question 16

A mission statement

Accepted Answer

A)  should never be revised. 
B)  sets out the organization's basic purpose for being. 
C)  should embrace everything rather than focus on a few key goals. 
D)  substitutes for more specific objectives. 
E)  supplies guidelines for general situations but not for situations where managers face difficult decisions. 
A)  should never be revised. 
B)  sets out the organization's basic purpose for being. 
C)  should embrace everything rather than focus on a few key goals. 
D)  substitutes for more specific objectives. 
E)  supplies guidelines for general situations but not for situations where managers face difficult decisions.

Question 17

The Internet is a system for linking computers around the world.

Accepted Answer

A) True 
 B)False

Question 18

The political environment may either block or promote new marketing opportunities.

Accepted Answer

A) True 
 B)False

Question 19

Technological advances like the World Wide Web and the Internet are leading to big advances in business.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements concerning strategic business units (SBUs) is NOT TRUE?

Accepted Answer

A)  SBUs are organizational units within a larger company. 
B)  SBUs are treated as separate profit centers. 
C)  SBUs focus on some product-markets. 
D)  By forming SBUs, a company acknowledges its similar business lines. 
E)  SBUs that produce only average profits should be allowed to generate profits to support SBUs with better growth prospects. 
A)  SBUs are organizational units within a larger company. 
B)  SBUs are treated as separate profit centers. 
C)  SBUs focus on some product-markets. 
D)  By forming SBUs, a company acknowledges its similar business lines. 
E)  SBUs that produce only average profits should be allowed to generate profits to support SBUs with better growth prospects.

Exam 3: Evaluating Opportunities in the Changing Marketing Environment

NAFTA:

Changes in the technological environment could be rejected by the cultural and social environment--through the political and legal environments--even though such changes might help the economic environment.

Which of the following would NOT be a marketing strength for a local coffee shop?

Which of the following is NOT an example of how the economic environment may affect marketing strategy planning?

Product warranties are the focus of the ______________ Act.

A basic idea in the legal environment in the United States is that attempts by business to limit competition are considered contrary to the public interest.

GE's Planning Grid approach to evaluating proposed and existing plans and businesses:

The objectives of a firm should direct the operation of the marketing department, but aren't important to the rest of the business.

When Acme Tools was found guilty of giving one of its retailers lower prices on goods of "like grade and quality" without any cost justification, the firm was charged with a violation of the ____________.

A first step in evaluating marketing opportunities is to:

Which of the following statements about nationalism is NOT TRUE?

The Sherman Act and the Federal Trade Commission Act:

Which of the following U.S. antimonopoly laws deals with "tying contracts" where the sale of one product is contingent on the business customer purchasing other products from the same supplier?

Earning a profit probably should be one of the objectives of a firm, but it should not be the only one.

The "continuum of environmental sensitivity" suggests that industrial products are more sensitive to the cultural environments in which they are placed than high-style consumer products.

A mission statement

The Internet is a system for linking computers around the world.

The political environment may either block or promote new marketing opportunities.

Technological advances like the World Wide Web and the Internet are leading to big advances in business.

Which of the following statements concerning strategic business units (SBUs) is NOT TRUE?

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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