Question 1

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.

Question 2

A firm's product-market screening criteria for evaluating existing plans and possible new opportunities should consider:

Accepted Answer

A)  the objectives of top management. 
B)  trends in the market environment. 
C)  the firm's strengths. 
D)  the firm's weaknesses. 
E)  All of these should be considered.

Question 3

The economic environment

Accepted Answer

A)  of an individual country has little effect on other countries. 
B)  refers to the application of science to convert resources to output. 
C)  includes changes in interest rates and inflation. 
D)  has little impact on an organization's marketing strategy. 
E)  does not change rapidly.

Question 4

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 5

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

Question 6

A mission statement should focus on just the key goals for the organization.

Accepted Answer

A) True 
 B)False

Question 7

A marketing manager in a large corporation wrote the company's president a memo in which she said: "The performance of our SBU has improved." An "SBU" is a:

Accepted Answer

A)  struggling business unit. 
B)  small business unit. 
C)  selective branding unit. 
D)  strategic business unit. 
E)  secondary bidding unit.

Question 8

Literacy studies show that ______________ percent of adults (age 15 or older) cannot read and write.

Accepted Answer

A)  10 
B)  18 
C)  38 
D)  50 
E)  60

Question 9

Regional groupings of nations outside the United States have little effect on the decisions of marketing managers whose firms are headquartered in the U.S.

Accepted Answer

A) True 
 B)False

Question 10

An emphasis on a single country's interests before everything else is known as

Accepted Answer

A)  socialism. 
B)  democracy. 
C)  nationalism. 
D)  capitalism. 
E)  entrepreneurship.

Question 11

The best marketing opportunity for a consumer products producer is in:

Accepted Answer

A)  California. 
B)  Florida. 
C)  New York. 
D)  Texas. 
E)  It depends on the marketing strategy.

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.

Question 13

When a local bank in Kansas City makes loans to its small business customers, it charges them an interest rate for borrowing money. Interest rates are part of the ____________ environment.

Accepted Answer

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

Question 14

Regarding the age trends in the U. S. population for 2010-2020:

Accepted Answer

A)  The average age of the U. S. population is increasing. 
B)  The number of people in the 45-64 age group is still increasing--although at a slower rate than between 2000-2010. 
C)  The number of senior citizens in the over-65 age group is increasing at a greater rate than between 2000-2010. 
D)  The oldest "baby boomers" are now reaching retirement age. 
E)  All of these statements are correct.

Question 15

Organizational units within a larger company which focus their efforts on selected product-markets and are treated as separate profit centers are called:

Accepted Answer

A)  portfolios. 
B)  strategic business units. 
C)  BTUs. 
D)  functional departments. 
E)  basing points.

Question 16

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 environment.

Question 17

Both GDP and GNI are widely used measures of national income.

Accepted Answer

A) True 
 B)False

Question 18

"Nationalism" is an issue in the ______________ environment.

Accepted Answer

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

Question 19

Which of the following countries have the HIGHEST GNI PER CAPITA?

Accepted Answer

A)  Saudi Arabia and Iran 
B)  Mexico and Spain 
C)  United States and Switzerland 
D)  India and China 
E)  Japan and Germany

Question 20

There are over 310 million people living in the United States.

Accepted Answer

A) True 
 B)False

Exam 3: Evaluating Opportunities in the Changing Marketing Environment

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

A firm's product-market screening criteria for evaluating existing plans and possible new opportunities should consider:

The economic environment

Identify the incorrect statement pertaining to the GNI per capita.

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 mission statement should focus on just the key goals for the organization.

A marketing manager in a large corporation wrote the company's president a memo in which she said: "The performance of our SBU has improved." An "SBU" is a:

Literacy studies show that ______________ percent of adults (age 15 or older) cannot read and write.

Regional groupings of nations outside the United States have little effect on the decisions of marketing managers whose firms are headquartered in the U.S.

An emphasis on a single country's interests before everything else is known as

The best marketing opportunity for a consumer products producer is in:

The Sherman Act and the Federal Trade Commission Act:

When a local bank in Kansas City makes loans to its small business customers, it charges them an interest rate for borrowing money. Interest rates are part of the ____________ environment.

Regarding the age trends in the U. S. population for 2010-2020:

Organizational units within a larger company which focus their efforts on selected product-markets and are treated as separate profit centers are called:

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

Both GDP and GNI are widely used measures of national income.

"Nationalism" is an issue in the ______________ environment.

Which of the following countries have the HIGHEST GNI PER CAPITA?

There are over 310 million people living in the United States.