Deck 2: Marketing Environment, Social Responsibility and Ethics

Question 1

What is environmental analysis? Why should a company use it and what does it accomplish?

Answer 1

no answer

Question 2

Marketers who attempt to influence and change the various environmental forces have a(n) ____ response to these forces.

A)reactive
B)inactive
C)variable
D)positive
E)proactive

Answer 2

E

Question 3

The tobacco industry in the United States is dominated by three large companies.When any one of these companies changes its price on tobacco products, the other two companies quickly adjust their prices to match it.From these characteristics, the tobacco industry could best be described as

A)price sensitive.
B)opportunistic.
C)monopolistic competition.
D)an oligopoly.
E)a monopoly.

Answer 3

D

Question 4

The Lazy-Boy Furniture Company collects information about a wide variety of competitive, economic, political, legal and regulatory, technological, and sociocultural forces that affect its marketing activities.This process is called

A)environmental scanning.
B)survey of environment.
C)marketing.
D)environmental analysis.
E)marketing information processing.

Question 5

Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in

A)environmental analysis.
B)competitive forces.
C)environmental scanning.
D)procompetitive legislation.
E)self-regulatory forces.

Question 6

____ competitors are those that compete in the same product class, but their products have different features, benefits, and prices.

A)Total budget
B)Generic
C)Brand
D)Product
E)Price

Question 7

In today's marketing environment, competitors can take on many forms.For example, Diet Coke can be seen as a competitor to Wrigley's Double Mint chewing gum.In this circumstance, these two products are described as ____ competitors.

A)generic
B)product
C)total budget
D)monopolistic
E)pure

Question 8

Companies delivering mixed concrete know that it cannot be shipped farther than twenty-five miles because the concrete might harden in the truck.Citrus County Concrete Company is the only supplier of mixed concrete to customers within a thirty-mile radius.Citrus County Concrete is an example of which one of the following competitive structures?

A)Monopoly
B)Oligopoly
C)Monopolistic competition
D)Pure competition
E)Monopsony

Question 9

Three primary methods of collecting information for environmental scanning are

A)marketing research, company records, and advance orders.
B)secondary sources, company records, and observation.
C)executive knowledge, media, and marketing research.
D)observation, secondary sources, and marketing research.
E)company database, executive knowledge, and research.

Question 10

____ competitors provide very different products that satisfy the same basic customer need.

A)Brand
B)Generic
C)Total budget
D)Product
E)Marketing

Question 11

Marketers who view political forces as being beyond their control are taking a(n) ____ response toward these forces.

A)reactive
B)aggressive
C)proactive
D)competitive
E)liberal

Question 12

The four major competitive structures are

A)monopolies, oligopolies, oligopolistic monopolies, and pure competition.
B)pure competition, heavy competition, moderate competition, and light competition.
C)brand, product, total budget, and generic.
D)oligopolies, monopolies, monopolistic competition, and pure competition.
E)monopolies, limited competition, oligopolistic competition, and pure competition.

Question 13

According to the textbook, a manager's duties in an environmental analysis include

A)checking information for accuracy, resolving inconsistencies, and assigning significance to the findings.
B)observation and assessment.
C)conducting research, assessment, and reporting.
D)observation, market research, and fact finding.
E)checking the company database, conducting research, and reporting.

Question 14

Are political forces beyond a marketer's control? Why or why not?

Question 15

Companies that compete for the same limited financial resources of the same customers are known as ____ competitors.

A)oligopolic
B)total budget
C)generic
D)product
E)brand

Question 16

When PepsiCo takes the information collected through research and attempts to assess and interpret what it means for its soft-drink marketing efforts, PepsiCo is engaged in environmental

A)scanning.
B)forces.
C)management.
D)manipulation.
E)analysis.

Question 17

Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Year's Eve party crowd instead of Korbel champagne.As a result of this action, Korbel and Hawaiian Punch can be viewed as ____ competitors.

A)generic
B)product
C)total budget
D)oligopolistic
E)pure

Question 18

While Silk Soymilk engages in environmental scanning and analysis, the company is more likely to change its products and marketing strategies to adapt to environmental forces rather than trying to influence these forces.Silk Soymilk has a(n) ____ approach to marketing environmental forces.

A)inactive
B)reactive
C)proactive
D)negative
E)variable

Question 19

​To monitor changes in the marketing environment effectively, marketers must engage in

A)environmental scanning and analysis.
B)economic scanning c.self-regulatory analysis
D)marketing research analysis
E)information collecting

Question 20

Companies that market products with similar features, benefits, and prices to the same customer group are known as ____ competitors.

A)generic
B)product
C)brand
D)total budget
E)monopolistic

Question 21

Assuming that inflation is low, high buying power characterises the ____ stage of the business cycle.

A)prosperity
B)depression
C)recovery
D)succession
E)recession

Question 22

While playing soccer, Bryan suddenly fell and broke his arm.Needing to get to the hospital, he was not only interested in the nearest location, but also the shortest emergency room wait time.He remembered seeing a billboard for The Cleveland Clinic promoting their time-text service where he could call the number GET-TXT-TIME and they would text him the approximate waiting time at the closest three hospital locations.The Cleveland Clinic is providing enhanced service to its patients by capitalizing on which environmental force?

A)Economic
B)Competitive
C)Political
D)Legal and regulatory
E)Technological

Question 23

U.S.rice farmers wish to get their product into the Japanese market but are hindered by a complex maze of regulations imposed by the Japanese government.The farmers are most likely to attempt to influence which aspect of the marketing environment?

A)Sociocultural
B)Technological
C)Competitive
D)Economic
E)Political

Question 24

Sociocultural forces are:

A)influences in a society and its culture that bring about changes in attitudes, beliefs, norms, customs and lifestyles.
B)changes in demographic and geographic conditions.
C)changes in the importance of food, clothing and housing.
D)factors that affect the ageing population and health improvements.
E)increasing the production of organic and genetically modified foods.

Question 25

The economy fluctuates in all countries.These fluctuations follow a business cycle of:

A)expand, capture, distribute and promote.
B)price, basics and functional.
C)value and utility.
D)reduction of marketing efforts.
E)prosperity, recession, depression and recovery.

Question 26

Costco competes by:

A)offering limited inventory and eliminating unnecessary costs.
B)engaging in monopolistic competition.
C)conducting environmental scanning.
D)communicating the value of its competitive approaches.

Question 27

People for the Ethical Treatment of Animals (PETA) have demonstrated against the sale of coats made of animal furs.PETA's efforts to change shoppers' attitudes represent a ____ force for fur retailers.

A)technological
B)political
C)sociocultural
D)self-regulatory
E)controllable

Question 28

J.Pitner Clothing is a medium-size specialty men's and women's clothing store in a market with many other specialty stores, department stores, and discounters.It has established a reputation for offering high-quality, fashionable merchandise with quality service.J.Pitner's competitive environment would best be characterised as

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

Question 29

Total buying power declines during periods of economic

A)recovery.
B)prosperity.
C)recession.
D)uncertainty.
E)expansion.

Question 30

Which category of income are marketers most interested in?

A)Wealth
B)Disposable income
C)Discretionary income
D)Total income
E)Extra income

Question 31

In general, which of the following competitive structures is an organisation least likely to operate?

A)Monopoly
B)Monopolistic competition
C)Oligopoly
D)Elastic competition
E)Pure competition

Question 32

Self-regulatory programs have advantages over government laws and regulatory agencies, such as:

A)they need to increase government bureaucracy.
B)non-member firms must abide by self-regulation.
C)less expensive establishment and implementation and more realistic and operational guidelines.
D)a lack of authority.
E)they waste valuable resources

Question 33

Companies that find themselves in a monopolistic competitive situation would be known to have:

A)no close substitutes.
B)no influence on price or supply.
C)few sellers.
D)differentiated its products because of lots of potential competitors.
E)a large number of sellers.

Question 34

Brand competitors have:

A)same product but different features, benefits and prices.
B)similar features, benefits and prices.
C)different products that solve the same problem.
D)limited financial resources of same customers.
E)indirect competitors.

Question 35

Technology is

A)the application of scientific knowledge to build products that customers desire.
B)the application of knowledge and tools to solve problems and perform tasks more efficiently.
C)applied sciences.
D)one of the weakest marketing environment forces.
E)the result of research performed primarily by universities.

Question 36

Ethics relates to:

A)individual and group decisions - judgements about what is right or wrong in a particular decision-making situation.
B)total effect of marketing decisions on society.
C)no formal rules.
D)increased future misconduct.
E)level of service.

Question 37

Technology assessment is

A)measuring how much technology has been incorporated into an organisation.
B)trying to foresee the effects of new products and processes on the firm's operation and on society in general.
C)assessing how much technology one wants to incorporate into a company in the future.
D)judging how a firm's products affect society.
E)weighing the cost of new technology to determine whether a firm can afford to use it.

Question 38

A person's buying power is a function of

A)disposable income.
B)past income, natural resources, and financial resources.
C)wages, rents, and investments.
D)income, wealth, and credit.
E)discretionary income.

Question 39

Fears of rising petrol prices and promised government incentives such as carbon tax credits have helped hybrid car sales remain healthier than sales of larger vehicle, such as four-wheel drive SUVs and V8s.The introduction of hybrid cars is an example of marketing mangers reacting to:

A)environmental forces.
B)marketing strategy.
C)objectives.
D)requirements.
E)goals.

Question 40

Discretionary income is associated with all of the following except

A)automobiles.
B)education.
C)pets.
D)furniture.
E)food.

Question 41

The Advertising Standards Bureau administers a national system of advertising self-regulation.

Question 42

A petrol station asked customers if they would pay $0.01 per litre more for their petrol if the station installed an air filtration system.Most said yes, but when the system was installed, many customers went to a cheaper competitor.In light of this, the petrol station needs to:

A)ask its customers about all other ideas in the future.
B)charge its remaining customers more than $0.01 per litre extra to maintain profit levels.
C)satisfy all members of society.
D)carefully balance the costs of providing low-priced products against the costs of being environmentally responsible.
E)sell the petrol station.

Question 43

An ethical issue is an identifiable problem, situation, or opportunity requiring an individual to choose from among several actions that must be evaluated as right or wrong.

Question 44

Marketing ethics goes beyond legal issues, although ethical disputes must sometimes be resolved in court.

Question 45

Social responsibility is an organisation's obligation to maximise its positive impact and minimise its negative impact on society.

Question 46

Technology has not revolutionised the products created and offered by marketers and the channels by which they communicate about their products.

Question 47

Marketing ethics refers to principles and standards that define acceptable conduct in marketing.

Question 48

It is easy to distinguish between legal and ethical issues.

Question 49

According to research, only a small percentage of consumers have a more positive opinion of an organisation when it supports causes they care about.

Question 50

Four dimensions of social responsibility are economic, legal, ethical, and philanthropic.

Question 51

Ethical standards for acceptable conduct for a company should

A)be clearly dictated by top management and enforced by all management staff.
B)consider only the point of view of the customers and the employees.
C)reflect the desires of the company's employees for a quality working environment.
D)be based on company, industry, government, customer, and society viewpoints.
E)be derived from federal, state, and local laws and regulatory agencies.

Question 52

Strategic philanthropy involves linking a firm's products to a particular social cause on a sort-term basis.

Question 53

Environmental scanning is the process of collecting information about forces in the marketing environment.

Question 54

Codes of conduct:

A)allow people to make decisions based on how their peers and superiors behave.
B)make unethical behaviour illegal.
C)encourage specific bad behaviour.
D)require a lack of confidentiality.
E)consist of formal rules and standards that describe what the company expects of its employees.

Question 55

Corporate social responsibility involves:

A)implementing government regulations.
B)doing what is economically sound, legal, ethical and socially conscious.
C)limiting debate.
D)reducing trust.
E)imposing costs.

Question 56

There are no federal laws that influence marketing decisions.

Question 57

Any time an activity causes managers or consumers to feel manipulated or cheated, a marketing ethics issue exists, regardless of the legality of that activity.

Question 58

Environmental forces are always dynamic.