Question 1

American legislative and economic thinking assumes that:

Accepted Answer

A)  competition among many small firms helps the economy. 
B)  firms must have their prices approved by the Federal Trade Commission. 
C)  the free enterprise system is dying. 
D)  laws are needed to prevent firms from competing with similar ("me-too") products. 
E)  government officials are needed to run the economy.

Question 2

NAFTA:

Accepted Answer

A)  is a free-trade pact between the U.S., Canada, and Mexico. 
B)  is a long-term proposition. 
C)  has already eliminated most trade barriers with Mexico. 
D)  all of these are correct.

Question 3

Identify the incorrect statement pertaining to the GNI per capita.

Accepted Answer

A)  The GNI per capita in the United States is the highest in the world. 
B)  The GNI per capita is quite high in the United States, Japan, and Germany. 
C)  The GNI per capita gives some idea of the income level of people in the country. 
D)  Many managers see great potential in countries where GNI per capita is low. 
E)  Managers see less competition where GNI per capita is low.

Question 4

In 1980, the median age of the U.S. population was 37.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following countries has the fastest projected population growth between 2010 and 2025?

Accepted Answer

A)  United Kingdom 
B)  Canada 
C)  Germany 
D)  United States 
E)  Ethiopia

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Technology affects marketing through new products and new processes.

Accepted Answer

A) True 
 B)False

Question 8

Smart marketers might respond to the changes in the U.S. population by:

Accepted Answer

A)  targeting customers in international markets to take advantage of faster population growth overseas. 
B)  targeting areas where there is less population but also fewer competitors. 
C)  focusing on areas, like the Northeast, where there are large numbers of potential customers. 
D)  all of these are good responses.

Question 9

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.

Question 10

Between 2005 and 2025, the largest projected increase in the U.S. population is projected to occur in the:

Accepted Answer

A)  50-59 age group. 
B)  65 or over age group. 
C)  10-19 age group. 
D)  0-9 age group. 
E)  40-49 age group.

Question 11

When planning a marketing strategy, managers have control over:

Accepted Answer

A)  the political and legal environment. 
B)  the cultural and social environment. 
C)  the economic environment. 
D)  their response to forces in the external market environment. 
E)  consumers.

Question 12

When a firm has multiple market opportunities from which to choose, marketers can use the following tool to identify the best ones:

Accepted Answer

A)  Competitor analysis 
B)  Competitor matrix 
C)  Focus group 
D)  S.W.O.T. analysis 
E)  Strategic planning grid

Question 13

The largest producer of "fuzz-busters" (radar detectors) sees that many states are increasing the penalty for using them. Clearly, this firm's marketing strategy may have to adapt to these changes in the

Accepted Answer

A)  economic and technological environments. 
B)  resources and objectives of the firm. 
C)  competitive environment. 
D)  political and legal environments. 
E)  cultural and social environments.

Question 14

If you go into a restaurant in Vienna, Austria, and ask for a Diet Coke, the waiter may have no idea what you are ordering. This is an example of which part of the external market environment?

Accepted Answer

A)  Political 
B)  Cultural and social 
C)  Legal 
D)  Economic 
E)  Competitive

Question 15

In the U.S., which population groups will fuel new opportunities in tourism, healthcare and financial services?

Accepted Answer

A)  Baby boomers and seniors 
B)  Generation X and Generation Y 
C)  Singles and newly divorced 
D)  Generation Y and Generation Z 
E)  Baby boomers and baby busters

Question 16

The Clayton Act focuses on practices which may substantially lessen competition-such as tying contracts, exclusive dealing contracts and price discrimination by manufacturers.

Accepted Answer

A) True 
 B)False

Question 17

A firm that is unable to obtain financing to manufacture new products is likely encountering negative pressures from:

Accepted Answer

A)  the competitive environment. 
B)  the technological environment. 
C)  the economic environment. 
D)  the political/legal environment. 
E)  the cultural/social environment.

Question 18

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.

Question 19

How might an organization ensure that marketing objectives are compatible and aligned with top-level company objectives?

Accepted Answer

A)  Involve marketing managers in setting company objectives 
B)  See how plans worked out at the end of the year 
C)  Maintain effective e-mail communication 
D)  Require every individual to set personal objectives 
E)  Require the marketing department to set objectives

Question 20

Interest rates

Accepted Answer

A)  often change with changes in the economy. 
B)  affect consumer markets, but not business customers. 
C)  usually decrease during periods of inflation. 
D)  do not directly affect the total price borrowers must pay for loans. 
E)  don't affect the prices buyers pay.

Exam 3: Evaluating Opportunities in the Changing Market Environment

American legislative and economic thinking assumes that:

NAFTA:

Identify the incorrect statement pertaining to the GNI per capita.

In 1980, the median age of the U.S. population was 37.

Which of the following countries has the fastest projected population growth between 2010 and 2025?

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

Technology affects marketing through new products and new processes.

Smart marketers might respond to the changes in the U.S. population by:

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

Between 2005 and 2025, the largest projected increase in the U.S. population is projected to occur in the:

When planning a marketing strategy, managers have control over:

When a firm has multiple market opportunities from which to choose, marketers can use the following tool to identify the best ones:

The largest producer of "fuzz-busters" (radar detectors) sees that many states are increasing the penalty for using them. Clearly, this firm's marketing strategy may have to adapt to these changes in the

If you go into a restaurant in Vienna, Austria, and ask for a Diet Coke, the waiter may have no idea what you are ordering. This is an example of which part of the external market environment?

In the U.S., which population groups will fuel new opportunities in tourism, healthcare and financial services?

The Clayton Act focuses on practices which may substantially lessen competition-such as tying contracts, exclusive dealing contracts and price discrimination by manufacturers.

A firm that is unable to obtain financing to manufacture new products is likely encountering negative pressures from:

The Sherman Act and the Federal Trade Commission Act:

How might an organization ensure that marketing objectives are compatible and aligned with top-level company objectives?

Interest rates