Question 1

The attitudes and behavior patterns of people are part of the

Accepted Answer

A)  political environment. 
B)  social and cultural environment. 
C)  competitive environment. 
D)  firm's resources and objectives. 
E)  economic and technological environment. 
A)  political environment. 
B)  social and cultural environment. 
C)  competitive environment. 
D)  firm's resources and objectives. 
E)  economic and technological environment.

Question 2

The return-on-investment approach to evaluating possible product-market strategic plans is useful when:

Accepted Answer

A)  the plans are for longer than two years. 
B)  there is uncertainty about the profitability of each plan. 
C)  the plans differ a lot in terms of investment required. 
D)  the total profit approach would be misleading because it ignores costs. 
E)  the plans involve very different strategies. 
A)  the plans are for longer than two years. 
B)  there is uncertainty about the profitability of each plan. 
C)  the plans differ a lot in terms of investment required. 
D)  the total profit approach would be misleading because it ignores costs. 
E)  the plans involve very different strategies.

Question 3

The Clayton Act deals with tying contracts, exclusive dealing contracts, and price-fixing conspiracies.

Accepted Answer

A) True 
 B)False

Question 4

Although the marketing manager cannot control the competitive environment, he can choose strategies that will avoid head-on situations.

Accepted Answer

A) True 
 B)False

Question 5

Trying to maximize short-run return on investment may not be good in the long run.

Accepted Answer

A) True 
 B)False

Question 6

Identify the incorrect statement concerning the North American Free Trade Agreement (NAFTA).

Accepted Answer

A)  NAFTA lays out a plan to reshape the rules of trade among the U.S., Canada, and Mexico. 
B)  NAFTA enlarges the free-trade pact that had already knocked down most barriers to U.S.-Canada trade. 
C)  Over a 15-year period, NAFTA has eliminated most barriers to U.S.-Mexico trade. 
D)  NAFTA prohibits moving of production and jobs from the U.S. to Mexico. 
E)  NAFTA establishes a forum for resolving future trade disputes. 
A)  NAFTA lays out a plan to reshape the rules of trade among the U.S., Canada, and Mexico. 
B)  NAFTA enlarges the free-trade pact that had already knocked down most barriers to U.S.-Canada trade. 
C)  Over a 15-year period, NAFTA has eliminated most barriers to U.S.-Mexico trade. 
D)  NAFTA prohibits moving of production and jobs from the U.S. to Mexico. 
E)  NAFTA establishes a forum for resolving future trade disputes.

Question 7

The _____ dimension of the GE grid helps managers answer the question: Does this product-market plan look like a good idea?

Accepted Answer

A)  business strengths 
B)  quantitative criteria 
C)  industry attractiveness 
D)  relative positioning 
E)  qualitative criteria 
A)  business strengths 
B)  quantitative criteria 
C)  industry attractiveness 
D)  relative positioning 
E)  qualitative criteria

Question 8

When a firm is searching for attractive opportunities, a good manager should keep in mind that ___________ strength is very important.

Accepted Answer

A)  financial 
B)  production and flexibility 
C)  marketing 
D)  pricing 
E)  all of the above 
A)  financial 
B)  production and flexibility 
C)  marketing 
D)  pricing 
E)  all of the above

Question 9

Laws such as the Pure Food and Drug Act were passed because pro-competition legislation did not protect consumers very well in some areas.

Accepted Answer

A) True 
 B)False

Question 10

The Consumer Product Safety Commission is responsible for:

Accepted Answer

A)  developing and enforcing safety standards for bicycles. 
B)  developing and enforcing environmental protection standards. 
C)  preventing the distribution and sale of adulterated or misbranded foods, drugs, and cosmetics. 
D)  All of the above. 
E)  None of the above. 
A)  developing and enforcing safety standards for bicycles. 
B)  developing and enforcing environmental protection standards. 
C)  preventing the distribution and sale of adulterated or misbranded foods, drugs, and cosmetics. 
D)  All of the above. 
E)  None of the above.

Question 11

The "continuum of environmental sensitivity" suggests that:

Accepted Answer

A)  some products are more adaptable to international markets than others. 
B)  it is extremely risky to sell basic commodities in international markets. 
C)  industrial products need to be adapted more than consumer products for international markets. 
D)  All of the above are true. 
E)  None of the above is true. 
A)  some products are more adaptable to international markets than others. 
B)  it is extremely risky to sell basic commodities in international markets. 
C)  industrial products need to be adapted more than consumer products for international markets. 
D)  All of the above are true. 
E)  None of the above is true.

Question 12

___________ ___________ are the firms that are considered to be the organization's closest challengers.

Accepted Answer

A)  Aggressive rivals 
B)  Competitive rival. 
C)  Direct rivals 
D)  Indirect rivals 
E)  Passive rivals 
A)  Aggressive rivals 
B)  Competitive rival. 
C)  Direct rivals 
D)  Indirect rivals 
E)  Passive rivals

Question 13

The economies of the world are connected and changes in one economy quickly affect others. One key reason for this is that:

Accepted Answer

A)  The amount of international trade is decreasing. 
B)  The amount of international trade is difficult to forecast. 
C)  The amount of international trade is increasing. 
D)  The amount of international trade is unstable. 
E)  The amount of international trade is stable. 
A)  The amount of international trade is decreasing. 
B)  The amount of international trade is difficult to forecast. 
C)  The amount of international trade is increasing. 
D)  The amount of international trade is unstable. 
E)  The amount of international trade is stable.

Question 14

Which of the following newspaper headlines is MOST LIKELY to be a result of changes in the cultural and social environment?

Accepted Answer

A)  "McDonald's Changes Its Menu to Cater to Low-Carb Dieters." 
B)  "General Motors Offers Original Equipment Car Stereos with Satellite Radio Service." 
C)  "Treasury Department Introduces New Currency to Combat Counterfeiters." 
D)  "New Projection TVs Are Thinner, Lighter than Traditional TVs." 
E)  "Gasoline Prices Increase Sharply." 
A)  "McDonald's Changes Its Menu to Cater to Low-Carb Dieters." 
B)  "General Motors Offers Original Equipment Car Stereos with Satellite Radio Service." 
C)  "Treasury Department Introduces New Currency to Combat Counterfeiters." 
D)  "New Projection TVs Are Thinner, Lighter than Traditional TVs." 
E)  "Gasoline Prices Increase Sharply."

Question 15

As compared to larger competitors, smaller firms benefit from lower unit costs which they achieve with lower sales volumes.

Accepted Answer

A) True 
 B)False

Question 16

The way in which an economy's resources are converted to output is part of the _______________ environment.

Accepted Answer

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

Question 17

Regarding the current legal environment facing U.S. marketing managers:

Accepted Answer

A)  state and local laws vary but contain important regulations. 
B)  the focus has shifted from "let the buyer beware" to "let the seller beware." 
C)  product safety is now controlled. 
D)  businesses and individual managers are subject to both criminal and civil laws. 
E)  all of the above. 
A)  state and local laws vary but contain important regulations. 
B)  the focus has shifted from "let the buyer beware" to "let the seller beware." 
C)  product safety is now controlled. 
D)  businesses and individual managers are subject to both criminal and civil laws. 
E)  all of the above.

Question 18

Which of the following laws is primarily concerned with product warranties?

Accepted Answer

A)  The Sherman Act 
B)  The Robinson-Patman Act 
C)  The Federal Trade Commission Act 
D)  The Magnuson-Moss Act 
E)  There are no laws regulating product warranties. 
A)  The Sherman Act 
B)  The Robinson-Patman Act 
C)  The Federal Trade Commission Act 
D)  The Magnuson-Moss Act 
E)  There are no laws regulating product warranties.

Question 19

Strong sentiments of nationalism facilitate growth in importing and exporting.

Accepted Answer

A) True 
 B)False

Question 20

The elimination of separate barriers to inter-European trade is making Europe a large unified market.

Accepted Answer

A) True 
 B)False

Exam 3: Evaluating Opportunities in the Changing Marketing Environment

The attitudes and behavior patterns of people are part of the

The return-on-investment approach to evaluating possible product-market strategic plans is useful when:

The Clayton Act deals with tying contracts, exclusive dealing contracts, and price-fixing conspiracies.

Although the marketing manager cannot control the competitive environment, he can choose strategies that will avoid head-on situations.

Trying to maximize short-run return on investment may not be good in the long run.

Identify the incorrect statement concerning the North American Free Trade Agreement (NAFTA).

The _____ dimension of the GE grid helps managers answer the question: Does this product-market plan look like a good idea?

When a firm is searching for attractive opportunities, a good manager should keep in mind that ___________ strength is very important.

Laws such as the Pure Food and Drug Act were passed because pro-competition legislation did not protect consumers very well in some areas.

The Consumer Product Safety Commission is responsible for:

The "continuum of environmental sensitivity" suggests that:

___________ ___________ are the firms that are considered to be the organization's closest challengers.

The economies of the world are connected and changes in one economy quickly affect others. One key reason for this is that:

Which of the following newspaper headlines is MOST LIKELY to be a result of changes in the cultural and social environment?

As compared to larger competitors, smaller firms benefit from lower unit costs which they achieve with lower sales volumes.

The way in which an economy's resources are converted to output is part of the _______________ environment.

Regarding the current legal environment facing U.S. marketing managers:

Which of the following laws is primarily concerned with product warranties?

Strong sentiments of nationalism facilitate growth in importing and exporting.

The elimination of separate barriers to inter-European trade is making Europe a large unified market.

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

Filters

_ _ are the firms that are considered to be the organization's closest challengers.