Marketing 2nd Edition By Shane Hunt – Test Bank
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Sample Test
Chapter03
Test Bank
1.The political, economic, demographic, sociocultural,
technological, and legal factors that affect a company’s ability to meet its
marketing goals are all part of
1. external
environmental factors.
2. a
company’s internal forces.
3. the
organizational environment.
4. a
company’s demographic characteristics.
5. E. the
marketing environment.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Differentiate between direct and
indirect competition.
Topic: Competitive Environment
Feedback: The marketing environment consists of the outside
factors and forces that affect a company’s ability to meet its marketing goals.
Those forces include political, economic, demographic, sociocultural,
technological, and legal factors.
2.A situation in which products that perform the same function
compete against one another is referred to as
1. functional
competition.
2. indirect
competition.
3. primary
competition.
4. D. direct
competition.
5. lateral
competition.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Differentiate between direct and
indirect competition.
Topic: Competitive Environment
Feedback: Also called category competition or brand competition,
direct competition is where products that perform the same function compete
against one another.
3.Compare the following product offerings. Which is the best
example of direct competition?
1. carpet
cleaning stores and hardware stores that rent carpet cleaners
2. B. Crest
and Colgate
3. the
local pizzeria and a Kentucky Fried Chicken
4. Coca-Cola
and Arizona Iced Tea
5. Burger
King and Subway
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 03-01 Differentiate between direct and
indirect competition.
Topic: Competitive Environment
Feedback: Crest and Colgate perform the same function in that
they are both Internet search engines. This fits the definition of direct
competition because the products perform the same function and compete against
each other.
4.Direct competition is also known as
1. market
competition.
2. in-house
competition.
3. lateral
competition.
4. substitute
product competition.
5. E. brand
competition.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Differentiate between direct and
indirect competition.
Topic: Competitive Environment
Feedback: Direct competition, in which products that perform the
same function compete against one another, is also known as category
competition or brand competition.
5.Karlee needed to pick up some toothpaste from the store. She was
surprised to find that the store was out of her usual brand, Crest. Rather than
go to another store, she decided to buy a tube of Colgate instead. In this
example, Colgate represents
1. a
disposable product.
2. indirect
competition.
3. an
unsought good.
4. lateral
competition.
5. E. a
substitute product.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-01 Differentiate between direct and
indirect competition.
Topic: Competitive Environment
Feedback: Goods and services that perform very similar functions
and can be used in place of one another, such as Crest and Colgate toothpaste,
are considered substitute products.
6.Indirect competition occurs when
1. consumers
purchase products that they did not intend to buy.
2. consumers
choose between two products that perform the same function.
3. a
company introduces a new product to its product line.
4. products
are marketed to a new consumer segment.
5. E. products
provide alternate solutions to the same market.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Differentiate between direct and
indirect competition.
Topic: Competitive Environment
Feedback: Indirect competition is a process in which products
provide alternative solutions to the same market.
7.Compare the following product offerings. Which is an example
of indirect competition?
1. A. Burger
King and Subway
2. Crest
and Colgate toothpaste
3. Coca-Cola
and Pepsi
4. Sirius
XM radio and Pandora
5. Dunkin’
Donuts and Krispy Kreme Doughnuts
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 03-01 Differentiate between direct and
indirect competition.
Topic: Competitive Environment
Feedback: Indirect competition occurs when products provide
alternate solutions to the same market. In this example, both Burger King and
Subway are part of the same fast food market, but they provide alternate
choices within that market.
8.Monitoring developments outside of the firm’s control with the
goal of detecting and responding to threats and opportunities is called
1. data
mining.
2. competitive
analysis.
3. C. environmental
scanning.
4. market
assessment.
5. brand
positioning.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: External Marketing Environment
Feedback: The act of monitoring developments outside of the
firm’s control with the goal of detecting and responding to threats and
opportunities is a process known as environmental scanning.
9.A firm that is engaged in environmental scanning is monitoring
developments outside of the firm’s control in order to detect and respond to
1. A. threats
and opportunities.
2. the
strengths of the firm.
3. environmental
issues associated with the firm’s operations.
4. the
weaknesses of the firm.
5. market
opportunities associated with environmental concerns.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: External Marketing Environment
Feedback: Marketing does not occur in a vacuum. Unforeseen
developments external to the firm can directly impact the success of its
marketing strategy. For this reason, marketing professionals continually scan
and analyze the external environment to detect and respond to threats and
opportunities, a process known as environmental scanning.
10.The six major external factors that influence the marketing
environment of a firm are economic, demographic, sociocultural, technological,
legal, and
1. domestic.
2. financial.
3. environmental.
4. D.
5. international.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: External Marketing Environment
Feedback: There are six major external factors that influence
the marketing environment of a firm. They are economic, demographic,
sociocultural, technological, legal, and political.
11.A sudden drop in the average consumer income would be an example
of which external force affecting the marketing environment?
1. technological
2. legal
3. sociocultural
4. D. economic
5. political
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Economic Environment
Feedback: Economic conditions impact consumer willingness and
ability to buy products. A sudden drop in the average consumer income would
impact how much consumers will buy.
12.A measure of the market value of all officially recognized
final goods and services produced within a country in a given period is
referred to as
1. the
currency exchange rate.
2. B. gross
domestic product.
3. purchasing
power parity.
4. the
balance of trade.
5. the
consumer price index.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Economic Environment
Feedback: Gross domestic product (GDP) paints a simple picture
of the economic health of a nation. It refers to the market value of all
officially recognized final goods and services produced within a country in a given
period.
13.Overall GDP is the most common gauge of
1. fluctuations
in currency exchange rates.
2. the
consumer price index and purchasing power parity.
3. unemployment
and future job forecasting.
4. D. the
overall expansion or contraction of an economy.
5. the
balance of trade between countries.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Economic Environment
Feedback: Gross domestic product (GDP) paints a simple picture
of the economic health of a nation. Overall GDP is the most common gauge of the
overall expansion or contraction of an economy.
14.Which of the following is the accurate cause of a recession?
1. The
consumer price index falls below the average yearly standard.
2. Inflation
rises for two or more consecutive quarters.
3. The
unemployment rate declines for two or more consecutive quarters.
4. Inflation
and unemployment both rise consecutively.
5. E. GDP
declines for two or more consecutive quarters.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Economic Environment
Feedback: A recession occurs when GDP declines for two or more
consecutive quarters.
15.Compare the following statements to determine which one
accurately depicts how income is distributed across the U.S. population.
1. Income
for the middle class in the United States has consistently grown faster than
any other wage-earning bracket.
2. Over
the past several decades, there has been little shift in any of the
wage-earning brackets of the U.S. population.
3. Over
the past several decades, there has been a robust shift in the lowest wage
earners moving upward to the middle class.
4. The
top wage earners of the U.S. population are earning only a small percentage of
the country’s adjusted gross income.
5. E. Over
the past several decades, income for the highest wage earners grew at a much
quicker pace than for households in the bottom wage-earning bracket.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Economic Environment
Feedback: Data show that while income for all household segments
increased, income for the highest wage earners grew at a much quicker pace than
for households in the bottom wage-earning bracket.
16.Which of the following is the correct definition of
inflation?
1. the
rise in the amount of goods and services that can be purchased for a specific
amount of money
2. a
decline in gross domestic product for two or more consecutive quarters
3. C. an
increase in the general level of prices of products in an economy over a period
of time
4. the
rise in the rate of unemployment due to a slowing economy
5. a
decline in consumer confidence about the overall state of the economy and their
own personal finances
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Economic Environment
Feedback: Inflation is an increase in the general level of
prices of products in an economy over a period of time.
17.Daniel is looking to buy a hybrid vehicle because he is
noticing that the price of gasoline continues to rise compared to years past.
The rise in the price of gasoline is most
likely a result of
1. deflation.
2. a
recession.
3. a
rise in GDP.
4. D.
5. an
increase in purchasing power.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Economic Environment
Feedback: Inflation is an increase in the general level of
prices of products in an economy over a period of time.
18.If the cost of groceries goes up by 10 percent this year, the
amount of groceries you can buy for $50 decreases by that same 10 percent. This
is an example of
1. A. a
decrease in purchasing power.
2. a
recession.
3. a
rise in GDP.
4. a
decline in GDP.
5. deflation.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Economic Environment
Feedback: Purchasing power is the amount of goods and services
that can be purchased for a specific amount of money. When the cost of goods
goes up, purchasing power declines.
19.A measure of how optimistic consumers are about the overall
state of the economy and their own personal finances is referred to as
1. market
confidence.
2. purchasing
confidence.
3. consumer
expectations.
4. D. consumer
confidence.
5. purchasing
power.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Economic Environment
Feedback: The amount consumers spend is often based on their
confidence in the stability of their future income. As a result, consumer
confidence can provide an effective measure of the health of the economy.
20.Which of the following is not considered to be a demographic
characteristic?
1. age
2. education
level
3. C. consumer
confidence
4. gender
5. ethnicity
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Demographic Environment
Feedback: Demographics are the characteristics of human
populations that can be used to identify consumer markets. A consumer market
cannot be identified by the level of consumer confidence.
21.The description of human populations based on characteristics
such as age, gender, ethnicity, and education level is referred to as
1. sociocultural
analysis.
2. B.
3. statistical
analysis.
4. psychographics.
5. consumer
group profiling.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Demographic Environment
Feedback: Demographics are the characteristics of human
populations that can be used to identify consumer markets. They include such
things as age, gender, ethnicity, and education level.
22.Which of the following is the fastest growing demographic
group in the United States?
1. teenagers
2. B. seniors
3. middle-aged
women
4. college-age
males
5. young
adults
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Demographic Environment
Feedback: The percentage of Americans aged 65 and older is
expected to almost double over the next 50 years, making seniors the fastest
growing demographic group.
23.The generation of children born between 1946 and 1964 is
retiring at a rate of 10,000 per day. What is the name of this demographic
group?
1. Millennials
2. Generation
X
3. Generation
Y
4. D. baby
boomers
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Demographic Environment
Feedback: Baby boomers make up the demographic group born
between 1946 and 1964.
24.Marketers are particularly interested in targeting baby
boomers because they typically possess which two things that marketing
professionals seek?
1. higher
education levels and disposable income
2. higher
paying jobs and greater interest in leisure activities
3. C. disposable
income and free time
4. greater
purchasing power and more consumer confidence
5. higher
paying jobs and higher education levels
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Demographic Environment
Feedback: Baby boomers typically possess two things that marketing
professionals seek: disposable income, which is the amount of spending money
available to households after paying taxes (baby boomers represent the
wealthiest generation in U.S. history), and the free time to spend it.
25.The amount of spending money available to households after
paying taxes is called
1. at-will
income.
2. tax-free
income.
3. discretionary
income.
4. D. disposable
income.
5. unaccountable
income.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Demographic Environment
Feedback: Disposable income is the amount of spending money
available to households after paying taxes.
26.A marketer that uses social media sites to engage potential
customers is most
likely targeting which demographic group?
1. baby
Boomers
2. silent
generation
3. Generation
X
4. D. Millennials
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Demographic Environment
Feedback: Millennials generally have the greatest familiarity
with and most use for digital communication, social media, and other forms of
technology. Marketers trying to reach this large consumer group increasingly
deliver their messages using channels, like the Internet, that are most likely
to be used by this market.
27.Currently, females account for what percentage of all
consumer purchases in the United States?
1. 5
percent
2. 12
percent
3. 35
percent
4. 60
percent
5. E. 85
percent
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Demographic Environment
Feedback: Today women take on the role of decision maker across
a large and expanding variety of products. Female consumers now account for 85
percent of all consumer purchases in the United States, including everything
from cars to groceries to health care.
28.Compare the following statements and select the one that
reflects your text’s assertion as to why educated consumers are prime targets
for marketing strategies.
1. Educated
consumers are more willing to spend money than uneducated consumers.
2. Educated
consumers know that in order to keep the economy moving, people must spend
money.
3. Educated
consumers typically have more access to various forms of media and therefore
are easier to target as a consumer group.
4. Educated
consumers typically have less free time and therefore spend money on products
that save them time and make their lives easier.
5. E. Educated
consumers are more likely to earn significantly more money throughout the
course of their lifetime.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Demographic Environment
Feedback: Educated consumers are likely to earn significantly
more money throughout the course of their lifetime and comprehend an
advertiser’s message more readily, making them prime targets for marketing
strategies.
29.Which ethnic group population in the United States is
expected to almost double by the year 2050?
1. A. Hispanics
2. Asian
Americans
3. African
Americans
4. Pacific
Islanders
5. Eastern
Europeans
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Demographic Environment
Feedback: The ethnic composition of the U.S. population is
changing rapidly. Projections indicate that by 2050 the Hispanic population in
the United States will almost double to more than 127 million, representing 29
percent of the entire U.S. population.
30.The external marketing factor that refers to the combination
of social and cultural factors that affect individual development is
1. human
nature.
2. culturalism.
3. ethnicity.
4. demographics.
5. E.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Sociocultural Influences
Feedback: The society and culture we live in help to shape our
beliefs, values, and norms, which, in turn, define our tastes and purchasing
habits. Sociocultural factors are the combination of social and cultural
factors that affect individual development.
31.According to your text, one of the biggest sociocultural
changes in the United States over the past half century has been
1. the
decline of females as the primary purchasers of products.
2. B. the
shift from one-income families to two-income and single-parent households.
3. the
gradual increase of college graduates in the workplace.
4. the
increased use of the Internet for purchasing consumer products.
5. the
immigration of Hispanics into the country.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Sociocultural Influences
Feedback: One of the biggest sociocultural changes in the United
States over the past half century has been the shift from a nation of primarily
one-income families, in which one spouse stayed home to raise children, to one
in which two-income families and single-parent households predominate.
32.What external marketing factor is at work when political
action committees raise money to help elect individuals to promote a particular
issue related to their industries?
1. economic
2. legal
3. sociocultural
4. D. political
5. technological
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Political and Legal Environment
Feedback: It has becoming increasingly possible for firms to impact
politics. For example, the past two decades have seen a dramatic increase in
the number and influence of political action committees (PACs). PACs have
raised money to help elect individuals who regard their organization positively
or to promote a particular issue related to their industry.
33.Which regulation was passed to eliminate monopolies and
guarantee competition?
1. A. the
Sherman Antitrust Act (1890)
2. the
Telephone Consumer Protection Act (1991)
3. the
Fair Packaging and Labeling Act (1966)
4. the
Robinson-Patman Act (1936)
5. the
Wheeler-Lea Amendment (1938)
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Political and Legal Environment
Feedback: The Sherman Antitrust Act (1890) combats
anticompetitive practices, reduces market domination by individual
corporations, and preserves unfettered competition as the rule of trade.
34.The consumer protection agency for the United States is the
1. Consumer
Protection Commission.
2. B. Federal
Trade Commission.
3. Federal
Communications Commission.
4. Bureau
of Consumer Financial Protection.
5. Food
and Drug Administration.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Political and Legal Environment
Feedback: The Federal Trade Commission (FTC) serves as the
consumer protection agency for the United States. The FTC collects complaints
about organizations that violate regulations, which can lead to investigations
and prosecutions.
35.What was the purpose of the Wheeler-Lea Act (1938)?
1. A. It
made deceptive and misleading advertising illegal.
2. It
eliminated monopolies and guaranteed competition.
3. It
banned unfair credit card rate increases.
4. It
guaranteed that product packages are labeled correctly.
5. It
established the Federal Trade Commission.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Political and Legal Environment
Feedback: The Wheeler-Lea Act (1938) authorizes the Federal
Trade Commission to restrict unfair or deceptive acts and broadened Federal
Trade Commission powers to include protection of consumers from false
advertising practices. It is also called the Advertising Act.
36.According to your text, of all the external factors that
affect the marketing environment, which one represents the most significant
challenges, as well as the most significant opportunities, for marketing
professionals?
1. demographic
2. economic
3. political
4. sociocultural
5. E. technological
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Technological Environment
Feedback: Of all the external factors, rapidly evolving
technology arguably represents one of the most significant challenges, as well
as one of the most significant opportunities, for marketing professionals.
Technology influences how consumers satisfy their needs and wants, the basic
concept underlying all marketing activities.
37.While shopping for back-to-school clothes, Josie uses apps on
her smartphone to comparison shop, and to obtain coupons and fashion advice.
What external factor affecting the marketing environment does this represent?
1. demographic
2. sociocultural
3. legal
4. D. technological
5. economic
AACSB: Technology
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Technological Environment
Feedback: In addition to affecting how consumers use products,
technology changes the way firms promote their products. The use of high
quality smartphones makes it possible for marketers to know where a customer is
and to communicate directly to him or her with an offer for that moment and
location.
38.As described in your text, how did marketers at Disney
utilize technology to provide a more hassle-free experience at their theme
parks?
1. A. by
introducing wristbands with a radio-frequency identification device
2. by
providing users with a park pass that could be used for their entire stay
3. by
installing monitor screens showing wait times for various rides/attractions
4. by introducing
a laser stamp that could be used instead of a park pass
5. by
installing smartphone charging stations
AACSB: Analytical Thinking
AACSB: Technology
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Technological Environment
Feedback: In 2013, Disney introduced MagicBands, which are
wristbands enabled with a radio-frequency identification device (RFID) chip.
MagicBands function as a room key and park entry pass for guests at its parks.
The MagicBand can also be linked to a Walt Disney World Resort hotel guest’s
hotel bill, making purchases within the parks easier and quicker.
39.Compare the following statements to determine which one is
accurate regarding marketing on a global scale versus marketing domestically?
1. The
external marketing factors that are considered when marketing domestically do
not apply when marketing products globally.
2. There
is no difference between how products are marketed globally versus
domestically.
3. Most
U.S. firms do not need to consider the global marketing environment in any
context.
4. Small
businesses are not affected by global trends like large corporations are.
5. E. Environmental
scanning on a global scale is more complex than it is in the domestic
environment.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 03-03 Extend the analysis of the marketing
environment beyond the borders of the United States.
Topic: International Marketing Environment
Feedback: In theory, the key external factors that impact a firm
in the international space do not differ substantially from the domestic space.
In practice, though, environmental scanning on a global scale often has added
layers of complexity.
40.What term refers to how the value of one country’s currency
changes in relation to the value of other currencies?
1. value
fluctuation
2. currency
expectation
3. currency
exchange
4. value
exchange
5. E. currency
fluctuation
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-03 Extend the analysis of the marketing
environment beyond the borders of the United States.
Topic: International Marketing Environment
Feedback: Currency fluctuation refers to how the value of one
country’s currency changes in relation to the value of other currencies.
Currency fluctuation can impact how firms market products internationally.
41.The price of one country’s currency in terms of another
country’s currency is referred to as
1. A. the
currency exchange rate.
2. the
value fluctuation rate.
3. the
currency fluctuation rate.
4. the
currency expectation rate.
5. the
value exchange rate.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-03 Extend the analysis of the marketing
environment beyond the borders of the United States.
Topic: International Marketing Environment
Feedback: The currency exchange rate refers to the price of one
country’s currency in terms of another country’s currency.
42.Analyze the following statements to determine what would
happen if the value of the euro appreciates relative to the dollar.
1. The
price of goods and services for European products would become evenly matched
with American products.
2. The
spending power of both American and European consumers would increase.
3. It
would increase the spending power of American consumers seeking to buy European
products.
4. D. It
would reduce the spending power of American consumers seeking to buy European
products.
5. It
would reduce the spending power of European consumers seeking to buy American
products.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 03-03 Extend the analysis of the marketing
environment beyond the borders of the United States.
Topic: International Marketing Environment
Feedback: If the value of the euro appreciates relative to the
dollar, it will reduce the spending power of American consumers seeking to buy
European products and, in turn, American goods and services would become more
affordable to European consumers.
43.What country has been criticized for undervaluing its
currency?
1. A. China
2. United
States
3. Japan
4. Great
Britain
5. Brazil
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-03 Extend the analysis of the marketing
environment beyond the borders of the United States.
Topic: International Marketing Environment
Feedback: The world’s largest country in terms of population,
China, has been criticized for undervaluing its currency, that is, pricing it
lower than it is actually worth. Many nations believe this gives China an
advantage in selling exports because it can price its products cheaper than
other countries’ products.
44.Currency fluctuations can provide marketing opportunities
1. only
if currency exchange rates remain stable.
2. only
when a currency is appreciating.
3. only
when a currency is depreciating.
4. only
internationally, but not domestically.
5. E. whether
a currency is appreciating or depreciating.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-03 Extend the analysis of the marketing
environment beyond the borders of the United States.
Topic: International Marketing Environment
Feedback: Currency fluctuations can provide marketing
opportunities whether a currency is appreciating or depreciating.
45.When marketers for Walt Disney World in Florida attract
French and British families by advertising the resort’s new affordability for
Europeans, what global marketing environment factor are they employing?
1. cultural
fit
2. B. currency
fluctuation
3. lowered
trade barriers
4. international
economic cooperation
5. income
distribution levels
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-03 Extend the analysis of the marketing
environment beyond the borders of the United States.
Topic: International Marketing Environment
Feedback: Currency fluctuations can provide marketing
opportunities whether a currency is appreciating or depreciating. In this case,
marketers are referring to appreciating rates for the euro.
46.According to your text, what provides the most reliable
picture of a country’s purchasing power?
1. a
high level of consumer confidence
2. a
stable rate of currency fluctuation
3. C. its
income distribution
4. an
appreciating currency value
5. its
level of gross domestic product
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-03 Extend the analysis of the marketing
environment beyond the borders of the United States.
Topic: International Marketing Environment
Feedback: As noted in your text, income distribution often
provides the most reliable picture of the purchasing power of a country.
47.A nation’s purchasing capability tends to increase when the
proportion of
1. lower-income
households increases.
2. upper-income
households increases.
3. top
wage earners increases.
4. top
wage earners decreases.
5. E. middle-income
households increases.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-03 Extend the analysis of the marketing
environment beyond the borders of the United States.
Topic: International Marketing Environment
Feedback: As noted in your text, marketers are particularly
attracted to countries with a growing middle class, since a nation’s purchasing
capability tends to increase as the proportion of middle-income households
increases.
48.When it comes to income distribution, what income class is
the marketing professional particularly attracted to?
1. the
top wage earners
2. those
below the poverty line
3. C. middle-income
households
4. upper-income
households
5. lower-income
households
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-03 Extend the analysis of the marketing
environment beyond the borders of the United States.
Topic: International Marketing Environment
Feedback: As noted in your text, marketers are particularly
attracted to countries with a growing middle class, since a nation’s purchasing
capability tends to increase as the proportion of middle-income households
increases.
49.International trade agreements, monetary unions, and
organizations can impact the environment in which a firm operates in all of the
following ways except
1. they
can facilitate the exchange of money and products across borders.
2. B. they
can make it easier to bypass regulations on economic activity.
3. they
can affect how easy it is for firms to enter a foreign market.
4. they
can affect what the currency exchange rate is between countries.
5. they
can affect what competition firms will encounter in the domestic market.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: Although international trade agreements, monetary
unions, and organizations can impact the environment in which a firm operates
in many positive ways, they cannot allow organizations to bypass regulations on
economic activity.
50.NAFTA is a trade agreement between
1. the
United States, Mexico, and Brazil.
2. Brazil,
China, and India.
3. the
European Union and the United States.
4. the
United States and China.
5. E. the
United States, Canada, and Mexico.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: Perhaps the most familiar U.S. trade agreement is the
North American Free Trade Agreement (NAFTA), which is an agreement between the
United States, Canada, and Mexico.
51.The largest share of U.S. exports is to
1. the
European Union.
2. Canada
and Japan.
3. C. Canada
and Mexico.
4. China.
5. Brazil
and India.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing environment.
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: Because NAFTA has made exchange among the United
States, Canada and Mexico so easy, the largest share of U.S. exports is to
Canada and Mexico.
52.Taxes on imports and exports between countries are called
1. A.
2. import/export
fees.
3. trade
restrictions.
4. duties.
5. concessions.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: Tariffs are taxes on imports and exports between
countries.
53.What was one of the key goals of the North American Free
Trade Agreement?
1. the
equalization of import/export fees
2. the
establishment of trade sanctions
3. C. the
elimination of tariffs
4. the
allowance of agricultural exports
5. the
establishment of trade embargoes
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing environment.
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: NAFTA’s implementation brought the immediate
elimination of tariffs on more than one-half of U.S. imports from Mexico and
more than one-third of U.S. exports to Mexico. Within 10 years of
implementation, all U.S.-Mexico tariffs were eliminated, except for some on
U.S. agricultural exports to Mexico that were to be phased out within 15 years.
Most U.S.-Canada trade was already free of tariffs.
54.CAFTA is a trade agreement for countries in
1. A. Central
America.
2. Africa.
3. Asia.
4. Europe.
5. North
America.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: CAFTA is a trade agreement between the Central
American countries of Costa Rica, El Salvador, Guatemala, Honduras, and
Nicaragua.
55.What country joined the Central America Free Trade Agreement
in 2004?
1. Mexico
2. B. Dominican
Republic
3. Cuba
4. United
States
5. Brazil
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: In 2004, the Dominican Republic joined CAFTA, and the
agreement was renamed Dominican Republic-Central America Free Trade Agreement
(DR-CAFTA).
56.Which country belonging to the DR-CAFTA trade agreement has
the largest economy?
1. Honduras
2. Costa
Rica
3. C. Dominican
Republic
4. El
Salvador
5. Nicaragua
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: With the addition of the Dominican Republic, the trade
group’s largest economy, the region covered by DR-CAFTA is the second-largest
Latin American export market for U.S. producers behind Mexico.
57.Which of the following generated an estimated 25 percent
share of the global gross domestic product, making it the largest economy in
the world in 2014?
1. the
Central American countries of DR-CAFTA
2. the
United States
3. C. the
European Union
4. China
5. the
North American countries of NAFTA
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: In 2014, the European Union generated an estimated 25
percent share of the global gross domestic product, making it the largest
economy in the world. It is the largest exporter, the largest importer, and the
biggest trading partner for several large countries, including China, India,
and the United States.
58.Which of the following acronyms stands for the international
organization that regulates trade among participating countries and helps
importers and exporters conduct their business?
1. NAFTA
2. CAFTA
3. NATO
4. D. WTO
5. IMF
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: The World Trade Organization (WTO) was formed in 1995
and is the only international organization dealing with the rules of trade
between nations.
59.Which of the following organizations was formed in 1995, is
headquartered in Geneva, Switzerland, and with its 162 members represents more
than 97 percent of the world’s population?
1. A. WTO
2. UN
3. NAFTA
4. IMF
5. NATO
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: The World Trade Organization was officially formed on
January 1, 1995. The WTO, headquartered in Geneva, Switzerland, has 162
members, representing more than 97 percent of the world’s population, and over
20 observer nations, most of which are seeking membership.
60.Consider the following activities to determine which one
is not a
function of the International Monetary Fund.
1. A. regulate
trade among participating countries
2. secure
financial stability
3. foster
international monetary cooperation
4. reduce
poverty around the world
5. facilitate
international trade
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: The IMF works to foster international monetary
cooperation, secure financial stability, facilitate international trade,
promote high employment and sustainable economic growth, and reduce poverty
around the world. It is the job of the WTO to regulate trade among
participating countries.
61.The International Monetary Fund was particularly important
when it was first created because it helped stabilize the world’s economic
system following
1. the
breakup of the Soviet Union.
2. World
War I.
3. the
creation of the European Union.
4. the
Great Depression.
5. E. World
War II.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: International Marketing Environment
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: The IMF was particularly important when it was first
created because it helped stabilize the world’s economic system following World
War II.
62.How many countries were members of the IMF?
1. 112
2. 210
3. 59
4. 86
5. E. 188
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: Trade Agreements, Monetary Unions and International Organizations
Feedback: Created in 1945, the IMF is governed by and
accountable to the 188 countries that make up its near-global membership.
63.Which of the following represents how technology is being
used in the global marketing environment?
1. A. the
use of translation programs, which allows customers to view websites in their
own language
2. countries
joining free trade agreements to facilitate the import and export of products
3. companies
outsourcing various functions such as customer service call centers to other
countries
4. corporations
that directly invest in foreign countries by opening satellite facilities
overseas
5. companies
advertising in both domestic and international publications
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: International Marketing Environment
Feedback: Technology enables even small businesses to reach
consumers across the globe. Tools such as Google Translate allow customers to
view websites in their own language, making it easier to promote products in
different countries.
64.If a domestic firm makes the mistake of believing that
foreign consumers want exactly the same products that are sold in the United
States, then that firm is most likely ignoring the importance of
1. consumer
ethnocentrism.
2. B. cultural
fit.
3. consumer
confidence.
4. environmental
scanning.
5. demographics.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: International Marketing Environment
Feedback: A company must understand the cultural needs and wants
of its foreign customers, in other words, its cultural fit. It is a mistake to
assume that foreign consumers want exactly the same products that are sold in
the United States.
65.What U.S. corporation was criticized when it created an
in-store ad for some European stores that showed a Hindu goddess atop a ham
sandwich with the caption, A snack that is sacred?
1. A. Burger
King
2. Subway
3. McDonald’s
4. Denny’s
5. Wendy’s
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: International Marketing Environment
Feedback: Burger King was widely criticized when it created an
in-store ad for some European stores that showed a Hindu goddess atop a ham
sandwich with the caption, A snack that is sacred. Many of the nearly 1 billion Hindus
throughout the world, most of whom are vegetarian, were offended and protested
the use of the advertisement.
66.A belief by residents of a country that it is inappropriate
or immoral to purchase foreign-made goods and services is known as
1. international
protectionism.
2. cultural
fit.
3. sociocultural
bias.
4. xenophobia.
5. E. consumer
ethnocentrism.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: International Marketing Environment
Feedback: Consumer ethnocentrism is a belief by residents of a
country that it is inappropriate or immoral to purchase foreign-made goods and
services.
67.Consider the following statements to determine which one
accurately describes the concept of consumer ethnocentrism.
1. a
belief that the world’s goods and services should be distributed fairly by all
nations
2. a
measure of how optimistic consumers are about the overall state of the economy
and their own personal finances
3. C. a
belief by residents of a country that it is inappropriate or immoral to
purchase foreign-made goods or services
4. a
measure of the amount of goods and services that can be purchased based on the
currency exchange rate
5. a
belief by residents of a country that the goods and services they produce are
superior to that of other countries
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: International Marketing Environment
Feedback: Consumer ethnocentrism is a belief by residents of a
country that it is inappropriate or immoral to purchase foreign-made goods and
services.
68.In 2003, when France refused to join the U.S. military
operation in Iraq, many U.S. consumers refused to eat french fries, so clever
marketers renamed them freedom fries. What obstacle were these marketers trying
to overcome?
1. foreign
boycott
2. cultural
fit
3. xenophobia
4. sociocultural
bias
5. E. consumer
ethnocentrism
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: International Marketing Environment
Feedback: In 2003, following France’s refusal to join the U.S.
military operation in Iraq, many U.S. consumers refused to eat french fries,
even though there was nothing French about the product.
Proactive marketers across the country looked for a clever way
to resolve the issue and, for a brief time, renamed their product freedom fries.
69.What are the three sources of funding that nonprofit
organizations rely on?
1. A. grants,
special events, and individual donations
2. federal
funds, state funds, and individual donations
3. special
events, corporate sponsorships, and individual donations
4. grants,
advertising revenue, and individual donations
5. grants,
federal funds, and individual donations
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-05 Describe the emerging factors that
influence the nonprofit marketing environment.
Topic: Nonprofit Marketing Environment
Feedback: Nonprofits primarily rely on three sources of funding:
grants, special events, and individual donations. Marketing generally plays an
important role in securing each.
70.Which of the following accurately describes the nonprofit
competitive environment?
1. Nonprofits
do not see a decline in donations during economic recessions.
2. Nonprofit
marketers are not impacted by external marketing factors.
3. Because
they do not operate for a profit, nonprofit organizations do not need to engage
in environmental scanning.
4. D. The
competitive environment for nonprofit funding has increased dramatically in
recent years.
5. The
competitive environment for nonprofit funding has decreased dramatically in
recent years.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-05 Describe the emerging factors that
influence the nonprofit marketing environment.
Topic: Nonprofit Marketing Environment
Feedback: The competitive environment for nonprofit funding has
increased dramatically in recent years. In 1995, there were only 600,000
nonprofits in the United States. Today, that number is over 1.8 million and
growing rapidly.
71.During the economic recession that began in December of 2007,
Americans reduced their overall charitable giving by approximately
1. 50
percent.
2. 2
percent.
3. C. 20
percent.
4. 10
percent.
5. 70
percent.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-05 Describe the emerging factors that
influence the nonprofit marketing environment.
Topic: Nonprofit Marketing Environment
Feedback: During the recession that began in December of 2007,
Americans reduced their overall charitable giving by over 20 percent from
levels prior to the recession. The decline was far sharper than in previous
economic recessions.
72.As noted in your text, from a political standpoint, which of
the following was hit particularly hard due to the recession that began in late
2007?
1. the
entertainment industry
2. the
banking industry
3. C. public
universities
4. auto
manufacturing
5. the
food service industry
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-05 Describe the emerging factors that
influence the nonprofit marketing environment.
Topic: Nonprofit Marketing Environment
Feedback: Public universities, which receive a substantial
portion of their funding from their respective state legislatures, have been
hit especially hard by the economic recession that began in late 2007.
73.When marketers use Facebook to increase awareness and enhance
relationships with donors, they are responding to which type of external force
in the marketing environment?
1. demographics
2. sociocultural
3. economic
4. legal
5. E. technological
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-05 Describe the emerging factors that
influence the nonprofit marketing environment.
Topic: Nonprofit Marketing Environment
Feedback: Many nonprofit organizations utilize new technology to
increase awareness and enhance relationships with donors. The rise of social
media gives nonprofit organizations substantial advantages when it comes to
organizing activists, conducting charity campaigns, or simply influencing
communities and stakeholders.
74.Compare the following business offerings. Which is the best
example of direct competition?
1. Pepsi
and Snapple
2. David’s
Bridal and Walmart
3. Burger
King and Olive Garden
4. Chick-fil-A
and In-and-Out Burger
5. E. Chevron
and Exxon
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 03-01 Differentiate between direct and
indirect competition.
Topic: Competitive Environment
Feedback: Chevron and Exon perform the same function as they are
both gas stations. They also offer similar products in their stores. This fits
the definition of direct competition because the two businesses perform the
same functions and compete against each other in the market.
75.A major factory closed in your area, which caused a drop in
the average income for the city. Which type of external force would this be
considered in the marketing environment?
1. technological
2. B. economic
3. political
4. legal
5. sociocultural
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Economic Environment
Feedback: Economic conditions impact consumer willingness and
ability to buy products. A sudden drop in the average consumer income would
impact how much consumers will buy.
76.When Disney seeks to attract European families by advertising
specially priced tourist packages, what global marketing environment factor are
they using?
1. income
distribution levels
2. international
economic cooperation
3. cultural
fit
4. D. currency
fluctuation
5. lowered
trade barriers
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-03 Extend the analysis of the marketing
environment beyond the borders of the United States.
Topic: Economic Environment
Feedback: Currency fluctuations can provide marketing
opportunities whether a currency is appreciating or depreciating. In this case,
marketers are referring to appreciating rates for the euro.
77.If FedEx makes the mistake of assuming that foreign consumers
participate in the same type of activities as those individuals in the United
States and thus only offers the same products and services in the United States
to these foreign consumers, then FedEx is making a mistake concerning
1. consumer
confidence.
2. consumer
ethnocentrism.
3. C. cultural
fit.
4. environmental
scanning.
5. demographics.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: International Marketing Environment
Feedback: A company must understand the cultural needs and wants
of its foreign customers, in other words, its cultural fit. It is a mistake to
assume that foreign consumers want exactly the same products that are sold in
the United States.
78.You are shopping with a good friend. While looking at a
sweater, she comments that she never buys clothes produced in China because the
use of cheap overseas labour is harmful to U.S. textile workers. This type of
belief is known as
1. cultural
fit.
2. xenophobia.
3. C. consumer
ethnocentrism.
4. sociocultural
bias.
5. international
protectionism.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: International Marketing Environment
Feedback: Consumer ethnocentrism is a belief by residents of a
country that it is inappropriate or immoral to purchase foreign-made goods and
services.
79.Since the most recent election, the members in Alex’s
community have felt considerably more optimistic about the shape of the
economy. As a result, the members of Alex’s community have purchased more.
There has likely been the result of an increase in __________.
1. Assassination
2. Technology
3. Gross
Domestic Product
4. Inflation
5. E. Consumer
Confidence
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Economic Environment
Feedback: Consumer confidence measures how optimistic consumers
are about the overall state of the economy and their own personal finances.
80.A local non-profit has shared a video on Facebook that
promotes awareness of what their organization does to help inner city children
grow up and escape gang violence. This is an example of a non-profit using
_______ to their advantage:
1. Political
Factors
2. B. Technology
Factors
3. Legal
Factors
4. Socioeconomic
Factors
5. Economic
Factors
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Nonprofit Marketing Environment
Feedback: Many non-profits utilize technology to increase
awareness and enhance relationships with donors.
81.Jordan works for a business that specializes in developing
social media smartphone apps aimed towards phone users who are incredibly tech-savvy.
What type of age group would likely be the optimal choice for a target market?
1. Baby-Boomers
2. B. Millennials
3. Generation
X
4. Generation
Z
5. Generation
Y
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Technological Environment
Feedback: Millennials generally have the greatest familiarity
with and most use with digital communication, social media, and other forms of
technology.
82.Federal, state, and local governments enact regulations to
ensure businesses are fair to each other as well as:
1. Make
sure most businesses are well funded
2. Ensure
that no business dominates market share
3. C. Ensure
that businesses don’t take advantage of consumers
4. Ensure
that consumers can’t take advantage of businesses
5. Create
profits for themselves
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Political and Legal Environment
Feedback: Federal, state, and local governments enact
regulations for two main purposes: 1. To ensure that businesses are fair to
each other and 2. To ensure businesses don’t take advantage of consumers.
83.What racial group are marketers now paying more attention to
because they represent the highest income, best educated, and fastest growing
racial group in the U.S.?
1. Hispanics
2. African
Americans
3. C. Asian
Americans
4. Pacific
Islanders
5. Latinos
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Sociocultural Influences
Feedback: Asian Americans represent the highest income, best
educated, and fastest growing racial group in the U.S.
84.In a competitive environment, the situation in which products
that perform the same function compete against one another is referred to as
________ competition.
direct
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Differentiate between direct and
indirect competition.
Topic: Competitive Environment
Feedback: The competitive environment includes direct
competitors and indirect competitors seeking to acquire market share and
profits. The most commonly discussed form of competition is direct competition,
in which products that perform the same function compete against one another.
85.The fact that Home Depot and Lowe’s both cater to the home
improvement segment of the marketplace by selling similar products is an
example of ________ competition.
direct
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-01 Differentiate between direct and
indirect competition.
Topic: Competitive Environment
Feedback: In direct competition, products that perform the same
function compete against one another. Since Home Depot and Lowe’s cater to the
same segment of the marketplace by offering similar or even identical products,
they would be considered direct competitors.
86._______ products are goods and services that perform very
similar functions and can be used in place of one another.
Substitute
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Differentiate between direct and indirect
competition.
Topic: Competitive Environment
Feedback: Substitute products are defined as goods and services
that perform very similar functions and can be used in place of one another.
87.Instead of watching movies on cable TV, Isabel has chosen instead
to subscribe to Netflix. Netflix would be considered a _______ product because
it performs a similar function to cable movie stations.
substitute
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-01 Differentiate between direct and
indirect competition.
Topic: Competitive Environment
Feedback: Substitute products are defined as goods and services
that perform very similar functions and can be used in place of one another.
88.When products provide alternate solutions to the same market,
_______ competition has occurred.
indirect
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Differentiate between direct and indirect
competition.
Topic: Competitive Environment
Feedback: Indirect competition occurs when products provide
alternative solutions to the same market.
89.In the fast food market, Subway would be considered a(n)
________ competitor to burger chains such as McDonald’s and Wendy’s.
indirect
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-01 Differentiate between direct and
indirect competition.
Topic: Competitive Environment
Feedback: Subway, McDonald’s, and Wendy’s are all part of the
same fast food market. However, since Subway offers an alternative to burgers,
it is considered to be an indirect competitor. Wendy’s and McDonald’s are
direct competitors because both offer the same product.
90.When a company monitors developments outside the control of
the firm with the goal of detecting and responding to threats and
opportunities, it is engaged in _______ _______.
environmental scanning
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: External Marketing Environment
Feedback: Marketing does not occur in a vacuum. A firm must be
aware of the developments taking place outside of the firm in order to be able
to detect and respond to threats and opportunities. This process is called
environmental scanning.
91.There are six types of major external factors that influence
the marketing environment of a firm. They are: sociocultural, demographic,
technological, political, legal, and ________.
economic
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: External Marketing Environment
Feedback: The external factors that affect the marketing
environment of a firm are: economic, demographic, technological, political, legal,
and sociocultural.
92._____ _____ _____is a measure of the market value of all
officially recognized final goods and services produced within a country in a
given period.
Gross domestic product orGDP
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Economic Environment
Feedback: Gross domestic product paints a simple picture of the economic
health of a nation and GDP per capita is often considered an indicator of a
country’s standard of living.
93.In the United States, GDP declined in both 2008 and 2009.
Because of this fact, the U.S. economy was considered to be in a _______.
recession
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Economic Environment
Feedback: A recession occurs when gross domestic product (GDP)
declines for two or more consecutive quarters.
94.When consumers experience an increase in the general level of
prices of products over a period of time, _______ has occurred.
inflation
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Economic Environment
Feedback: Inflation can be described as an increase in the
general level of prices of products in an economy over a period of time.
95.Carlos makes the same amount of money as he did last year,
but lately he never seems to have enough money to make ends meet. Where he used
to be able to save money each month, now he barely has enough to pay his bills.
Carlos is experiencing a reduction in his ______ ______.
purchasing power
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Economic Environment
Feedback: Purchasing power is a measure of the amount of goods
and services that can be purchased for a specific amount of money.
96.When consumers are optimistic about the overall state of the
economy, their ______ ______will be high and they will tend to purchase more.
consumer confidence
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Economic Environment
Feedback: Consumer confidence is a measure of how optimistic
consumers are about the overall state of the economy and their own personal
finances.
97.Age, gender, ethnicity, and education level are all _______
characteristics that influence the products consumers buy.
demographic
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Demographic Environment
Feedback: Demographics are the characteristics of human
populations that can be used to identify consumer markets.
98.The amount of spending money available to households after
paying taxes is referred to as _______ income.
disposable
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Demographic Environment
Feedback: Disposable income is the term used for the amount of
spending money available to households after paying taxes.
99.Seventy-five percent of _______ identify themselves as the
primary shopper in their household.
women orfemales
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors that
influence the marketing environment.
Topic: Demographic Environment
Feedback: Female control over the majority of consumer spending
makes them a target for marketers across products. Seventy-five percent of
women identify themselves as the primary shopper in their household.
100.Projections indicate that by 2050 the _______ population in
the United States will almost double to more than 127 million, representing
over 30 percent of the entire U.S. population.
Hispanic
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Demographic Environment
Feedback: The purchasing power of ethnic minorities is growing.
Marketers need to be aware of this fact when promoting their products. In
particular, the Hispanic population in the United States is expected to almost
double by the year 2050.
101._______ factors are the combination of social and cultural
factors that affect individual development.
Sociocultural
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Sociocultural Influences
Feedback: The society and culture we live in help to shape our
beliefs, values, and norms, which, in turn, define our tastes and purchasing
habits.
102.The _______ made deceptive and misleading advertising
illegal.
Wheeler-Lea Act orAdvertising
Act
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Political and Legal Environment
Feedback: The Wheeler-Lea Act of 1938 made deceptive and
misleading advertising illegal.
103.The consumer protection agency for the United States is the
______ ______ ______.
Federal Trade Commission orFTC
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Political and Legal Environment
Feedback: The Federal Trade Commission (FTC) collects complaints
about organizations that violate regulations, which can lead to investigations
and prosecutions. It is the consumer protection agency for the United States.
104.Cecilia used to spend a lot of time clipping coupons to save
money at the grocery store. Since she got a smartphone, however, she now has
apps that not only bring her coupons, but also help her create grocery lists,
find recipes, and search for deals. This is an example of how the external
factor of _______ influences the marketing environment.
technology
AACSB: Technology
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Technological Environment
Feedback: Of all the external factors, rapidly evolving
technology influences how consumers satisfy their needs and wants, the basic
concept underlying all marketing activities. Smartphone apps are an example of
a technological innovation that helps consumers satisfy their needs.
105.The ______ ______ ______ is the price of one country’s
currency in terms of another country’s currency.
currency exchange rate
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-03 Extend the analysis of the marketing
environment beyond the borders of the United States.
Topic: International Marketing Environment
Feedback: The price of one country’s currency in terms of
another country’s currency is referred to as the currency exchange rate.
106.Currency _______ refers to how the value of one country’s
currency changes in relation to the value of other currencies.
fluctuation
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-03 Extend the analysis of the marketing
environment beyond the borders of the United States.
Topic: International Marketing Environment
Feedback: How the value of one country’s currency changes in
relation to the value of other currencies is currency fluctuation, and it can
impact how firms market products internationally, either positively or
negatively.
107.A country’s ______ ______often provides the most reliable
picture of its purchasing power.
income distribution
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-03 Extend the analysis of the marketing
environment beyond the borders of the United States.
Topic: International Marketing Environment
Feedback: Income distribution within a country often provides
the most reliable picture of its purchasing power.
108.NAFTA is an international agreement that established a free
trade zone among the United States, Canada, and _______.
Mexico
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: The North American Free Trade Agreement (NAFTA)
established a free trade zone among the United States, Canada, and Mexico.
109.One of the key goals of NAFTA, to eliminate barriers to
trade and investment among the United States, Canada, and Mexico, was
accomplished by the elimination and/or reduction of _______.
tariffs
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: NAFTA’s implementation brought the immediate
elimination of tariffs on more than one-half of U.S. imports from Mexico and
more than one-third of U.S. exports to Mexico. Within 10 years of
implementation, all U.S.-Mexico tariffs were eliminated, except for some on
U.S. agricultural exports to Mexico that were to be phased out within 15 years.
Most U.S.-Canada trade was already free of tariffs.
110.In 2004, the ______ ______ joined the Central America Free
Trade Agreement.
Dominican Republic
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: The Central America Free Trade Agreement (CAFTA) was
renamed DR-CAFTA after the Dominican Republic joined the group in 2004.
111.The ______ ______was formed to create a single European market
by reducing barriers to the free trade of goods, services, and finances among
member countries.
European Union orEU
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: The European Union (EU) is an economic, political, and
monetary union of 28 European nations that created a single European market by
reducing barriers to the free trade of goods, services, and finances.
112.The ______ ______ ______ is an international organization
that regulates trade among participating countries and helps importers and
exporters conduct their business.
World Trade Organization orWTO
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: The World Trade Organization was officially formed on
January 1, 1995, under the Marrakech Agreement. It is the only international
organization dealing with the rules of trade between nations.
113.The ______ ______ ______ works to foster international
monetary cooperation, secure financial stability, facilitate international trade,
promote high employment and sustainable economic growth, and reduce poverty
around the world.
International Monetary Fund orIMF
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: The International Monetary Fund (IMF) is governed by
and accountable to the 188 countries that make up its near-global membership.
It was formed to promote international economic cooperation, trade, employment,
and currency exchange rate stability, including by making resources available
to member countries to help them manage their debts.
114.The IMF was particularly important when it was first created
because it helped stabilize the world’s economic system following ______ ______
______.
World War II orWWII orWorld
War 2
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: Trade Agreements, Monetary Unions and International
Organizations
Feedback: The IMF was particularly important when it was first
created because it helped stabilize the world’s economic system following World
War II.
115.A belief by residents of a country that it is inappropriate
or immoral to purchase foreign-made goods and services is known as consumer
_______.
ethnocentrism
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: International Marketing Environment
Feedback: Consumer ethnocentrism sometimes presents a challenge
to marketers with international operations. Promoting a product in a different
way can overcome such challenges.
116.When a company assumes that foreign consumers want exactly
the same products that are sold in the United States, it has failed to analyze
the importance of understanding ______ ______.
cultural fit
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Identify the major trade agreements,
monetary unions, and organizations that affect the international marketing
environment.
Topic: International Marketing Environment
Feedback: Analyzing cultural fit and overcoming consumer
ethnocentrism are essential aspects of environmental scanning on a global scale
that help firms create value for international consumers.
117.Nonprofit organizations rely primarily on three sources of
funding: special events, individual donations, and _______.
grants
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-05 Describe the emerging factors that
influence the nonprofit marketing environment.
Topic: Nonprofit Marketing Environment
Feedback: Marketing plays an important role in securing funding
for nonprofit organizations, which comes primarily from special events,
individual donations, and grants.
118.During the recession that began in December of 2007,
Americans reduced their overall charitable giving by over _______ percent.
20 ortwenty
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-05 Describe the emerging factors that
influence the nonprofit marketing environment.
Topic: Nonprofit Marketing Environment
Feedback: During the recession that began in December of 2007,
Americans reduced their overall charitable giving by over 20 percent. This
decline was far sharper than in previous economic recessions.
119.Laws and regulations that have an impact on how nonprofit
firms operate are part of the _______ factors that impact the marketing efforts
for these firms.
legal
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-05 Describe the emerging factors that
influence the nonprofit marketing environment.
Topic: Nonprofit Marketing Environment
Feedback: Laws and regulations that have an impact on how
nonprofit firms operate are part of the legal factors that impact the marketing
efforts for these firms.
120.A nonprofit firm that uses social media to organize
activists, or conduct charity campaigns, is aware of the _______ factor that
can impact marketing campaigns.
technological
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-05 Describe the emerging factors that
influence the nonprofit marketing environment.
Topic: Nonprofit Marketing Environment
Feedback: Many nonprofit organizations utilize new technology to
increase awareness and enhance relationships with donors.
121.Direct competition is also known as category competition.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Differentiate between direct and
indirect competition.
Topic: Competitive Environment
Feedback: Direct competition, where products that perform the
same function compete against one another, is also known as category
competition or brand competition.
122.Direct competition occurs when a product provides alternate
solutions to the same market.
FALSE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Differentiate between direct and
indirect competition.
Topic: Competitive Environment
Feedback: When products provide alternate solutions to the same
market, indirect competition
is taking place.
123.A long-time leader in the beverage industry, Coca-Cola saw
soft-drink sales decline when competitors began selling juices, teas, and
energy drinks. This is an example of indirect competition.
TRUE
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Differentiate between direct and
indirect competition.
Topic: Competitive Environment
Feedback: Juices, teas, and energy drinks, while still
beverages, provide an alternative to soft drinks making this a form of indirect
competition.
124.Environmental scanning involves monitoring developments
within a firm’s control to evaluate the firm’s strengths and weaknesses.
FALSE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: External Marketing Environment
Feedback: If a firm wants to detect and respond to threats and
opportunities, it needs to monitor developments outside of the
firm’s control, a process called environmental scanning.
125.The six major external factors that can influence the marketing
environment of a firm are: economic factors, domestic factors, international
factors, political factors, legal factors, and sociocultural factors.
FALSE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: External Marketing Environment
Feedback: External factors that influence the marketing
environment exist on both the domestic and global scale. They are classified
as: economic factors, demographic factors, political factors, technological
factors, legal factors, and sociocultural factors.
126.Economic factors influence almost every marketing decision a
firm makes.
TRUE
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Economic Environment
Feedback: Economic factors influence almost every marketing
decision a firm makes. Economic conditions affect consumers’ willingness and
ability to buy products. As a result, firms must create, communicate, and
deliver value in a way that’s appropriate for the current economic climate.
127.A recession occurs when inflation rises for two or more
consecutive quarters.
FALSE
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-02 Summarize the major external factors
that influence the marketing environment.
Topic: Economic Environment
Feedback: When gross domestic product (GDP) declines for two or
more consecutive quarters, a recession occurs.
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