Question 1

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

Accepted Answer

A)  Federal Trade Commission Act 
B)  Lanham Act 
C)  Clayton Act 
D)  Sherman Antitrust Act 
E)  Robinson-Patman Act

Question 2

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

Accepted Answer

A)  a deflationary 
B)  an expansionary 
C)  a recessionary 
D)  an inflationary 
E)  a depressive

Question 3

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.

Accepted Answer

The answer of Some industries have opted for self-regulation of...

Question 4

Culture refers to the set of values, ideas, and attitudes that are learned and shared among members of a group. It also serves as a socializing force that

Accepted Answer

A)  reflects the will of the largest or most powerful ethnic or racial group. 
B)  is determined by the largest generational cohort at a given point in time. 
C)  becomes the basis of all legislation-federal, state, and local-in societies around the world. 
D)  expresses the diverse backgrounds of a nation's subcultures. 
E)  dictates what is morally right and just.

Question 5

Two former sales representatives of Amgen, a biotech company, alleged the company strongly encouraged its salesforce to search confidential medical records in dermatologist's offices to find names of patients that would benefit Amgen's drug Enbrel, a psoriasis treatment. After reporting this practice to the president, one rep was fired and the other resigned after receiving a poor performance review. Both sued Amgen, claiming they did not go along with the scheme because they objected to it as being unethical. The two sales representatives are

Accepted Answer

A)  scabs. 
B)  cronies. 
C)  whistle-blowers. 
D)  contrarians. 
E)  ombudsmen.

Question 6

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

Accepted Answer

A)  a monopoly. 
B)  a mega monopoly. 
C)  a pure competition. 
D)  an oligopoly. 
E)  a monopolistic competition.

Question 7

Walmart has set ambitious goals to cut energy use by buying more local products, reducing packaging, and switching to renewable power in response to customers'

Accepted Answer

A)  changing values. 
B)  changing population composition. 
C)  changing demographics. 
D)  changing regulatory forces. 
E)  changing ethnic composition.

Question 8

Three of the six specified actions in Toyota's Challenge 2050 pertain to the company's efforts to

Accepted Answer

A)  provide liveable wages and workplace conditions. 
B)  expand into new product categories. 
C)  create recyclable products. 
D)  respond to competitors. 
E)  minimize CO2 emissions.

Question 9

Most paint is neither biodegradable nor friendly to the environment because it is made with petroleum solvents. A builder who decided to build a subdivision with 500 homes and paint each with an environmentally friendly, soy-based paint (even though it costs more) would be practicing

Accepted Answer

A)  profit responsibility. 
B)  cause marketing. 
C)  stakeholder responsibility. 
D)  mass marketing. 
E)  societal responsibility.

Question 10

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

Accepted Answer

A)  declined to 13 percent. 
B)  remained flat at 0.5 percent. 
C)  fluctuated minimally around 2 percent. 
D)  risen to 5.5 percent. 
E)  exploded to nearly 10 percent.

Question 11

In the private purchase of a used or "pre-owned" car, ________ places the burden on the buyer to make sure the car is worth the purchase price, so it is advisable to take the car first to a mechanic. Once the transaction is complete the buyer typically will not receive a warranty or return option from the seller.

Accepted Answer

A)  modus operandi 
B)  caveat emptor 
C)  de facto marketing 
D)  ćest la vie 
E)  anguis in herba

Question 12

Medication sensors have been developed that can dispense medicines by circulating within the arteries of the body and sensing when the medication is needed. This is an example of how ________ forces help improve or replace existing products and companies.

Accepted Answer

A)  ecological 
B)  regulatory 
C)  legal 
D)  competitive 
E)  technological

Question 13

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

Accepted Answer

A)  Food and Drug Administration 
B)  U.S. Department of Justice 
C)  Federal Trade Commission 
D)  Better Business Bureau 
E)  American Marketing Association

Question 14

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

Accepted Answer

A)  Naderism. 
B)  consumerism. 
C)  green marketing. 
D)  anticorporate activism. 
E)  libertarianism.

Question 15

the maker of Wrigley chewing gum funded a $10 million ad campaign aimed at getting African Americans to use doctors for regular health care maintenance instead of only when they are sick. This is an example of

Accepted Answer

A)  profit responsibility. 
B)  cause marketing. 
C)  stakeholder responsibility. 
D)  societal responsibility. 
E)  mass marketing.

Question 16

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

Accepted Answer

A)  Consumer Product Safety Act. 
B)  Consumer Bill of Rights. 
C)  Lanham Act. 
D)  Sherman Antitrust Act. 
E)  CAN-SPAM Act.

Question 17

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.

Accepted Answer

The answer of List the five environmental forces that have...

Question 18

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

Accepted Answer

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.

Question 19

In most countries, copyrights, trademarks, and patents are viewed as intellectual property, and unauthorized use, reproduction, or distribution of intellectual property is illegal. In a few countries, however, copying enjoys a long tradition, does not carry a stigma, and is legal. For example, copying a masterpiece may be historically considered an art form in its own right. The difference between these two groups of countries shows that ________ affect(s) the view of ethical behavior held in each country.

Accepted Answer

A)  business culture 
B)  industry practices 
C)  corporate culture 
D)  corporate expectations 
E)  societal culture and norms

Question 20

Social responsibility is

Accepted Answer

A)  a personal moral philosophy that focuses on the greatest good for the greatest number by assessing the costs and benefits of the consequences of ethical behavior. 
B)  a democratic consensus of moral principles and laws that govern the behavior of individuals based on legislation adopted at the federal, state, and local levels. 
C)  a societal moral philosophy based on the Golden Rule of the Judeo-Christian ethic found in the U.S. Constitution's Bill of Rights. 
D)  the view that organizations are part of a larger society and are accountable to that society for their actions. 
E)  a personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome.

Exam 3: Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility