236) The Deceptive Mail Prevention and Enforcement Act provides specifications for direct mail
sweepstakes, such as requiring which of the following copy to appear in the promotion literature
or website?
A) “Everybody Wins.”
B) “You can’t win if you don’t play.”
C) “When you enter, we collect and keep your information.”
D) “No purchase necessary to win.”
E) “Your information will remain private.”
237) Recent legislation including the Telephone Consumer Protection Act and the Controlling
the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act are reforms that are
A) promotion-related.
B) price-related.
C) distribution-related.
D) self-regulated.
E) product-related.
238) The purpose of the national Do Not Call Registry is to
A) prevent manufacturers from being deluged with customer complaints during business hours.
B) separate listed from unlisted phone numbers in telephone books and online information
directories.
C) divert enquiries from manufacturers to their suppliers that are ultimately responsible for
product distribution.
D) remove identification codes from mobile phones and tablet devices that would identify them
as customers as well as their locations.
E) protect consumers from unsolicited telemarketing calls.
239) Though online ________ may provide consumers with more targeted digital advertising,
some are concerned about privacy issues.
A) espionage
B) confidentiality
C) tracking
D) clickbotting
E) spamming
240) An alternative to government control where an industry attempts to police itself is referred
to as
A) consumer protection.
B) self-regulation.
C) industry accountability.
D) voluntary compliance.
E) government-imposed ethical policing.
241) Self-regulation refers to
A) governmental guidelines that suggest what is legal and ethical and what is not.
B) a self-imposed set of rules set by a specific industry watchdog group that dictates legal and
ethical behaviors.
C) an alternative to government control where an industry attempts to police itself.
D) voluntary compliance to governmental rules and regulations set for a specific industry.
E) a set of rules created and enforced by the FTC to which all members of an industry voluntarily
agree to comply.
242) One of the problems associated with self-regulation is
A) the lack of a written code of ethics by firms in the industry.
B) the intrusive enforcement by the FTC.
C) the opportunity corporate for espionage by competitors.
D) the absence of an industry association with persuasive power.
E) noncompliance by members.
243) The best-known self-regulatory group is the ________, which is a voluntary alliance of
companies whose goal is to help maintain fair practices.
A) U.S. Department of Justice
B) National Chamber of Commerce
C) Better Business Bureau
D) Federal Trade Commission
E) National Federation of Independent Business
244) The Better Business Bureau
A) is the best-known federal agency involved in monitoring self-regulation of competing
businesses.
B) has a great deal of legal power to force a company to comply with its regulations.
C) cannot be involved with Internet commerce.
D) is a voluntary alliance of companies whose goal is to help maintain fair practices.
E) is the agency that oversees advertising that runs on television programs.
245) The Better Business Bureau (BBB) tries to use ________ to get its members to comply with
its standards of business conduct.
A) the FTC
B) industry trade associations
C) moral suasion
D) the courts
E) competitors
246) When a firm or business displays the Better Business Bureau (BBB) Accredited Business
logo on its store window or website, it assures consumers that
A) the company’s products comply with current safety standards set by the Consumer Product
Safety Commission.
B) it is a member of a voluntary alliance of companies whose goal is to help maintain fair
business practices.
C) the firm has met the standards for qualification as a green marketing firm.
D) the firm takes a proactive stance on diversity in the workplace.
E) the company incorporates sustainable business practices.
247) Geek Squad set out to provide timely and effective help with all computing needs
regardless of the make, model, or place of purchase. Employees were called “agents” and wore
uniforms with a Geek Squad logo to create a “humble” attitude that was not threatening to
customers. Agents could also be identified by
A) their required crew cuts or ponytails.
B) their black-and-white vehicles with the logo on the door.
C) the tablet devices they constantly carry.
D) pocket protectors and faux black glasses, used to play up the theme.
E) the location consumers could find them in the store, an actual freestanding “shack.”
248) In 2002, Geek Squad was purchased by leading retailer
A) Target.
B) Best Buy.
C) Apple.
D) Amazon.
E) GameStop.
249) Which of the following statements regarding the Geek Squad is most accurate?
A) Men who need help from the Geek squad do not want women “Geeks” to help them because
it makes them feel inferior.
B) The Geek Squad has exclusive rights to the home-help segment thanks to their relationship
with Best Buy.
C) The Geek Squad can only assist customers who purchase Dell Computers.
D) The need for the Geek Squad was the result of many environmental factors, not simply a need
for technological knowledge.
E) Although the Geek Squad brought more customers into Best Buy, the rate of product returns
has only dropped a negligible amount.
250) How would the following environmental trends influence the success of a manufacturer of
high-definition televisions (HDTVs): (1) growing number of older Americans; (2) population
shifts to remote suburbs and small towns; (3) increase in per capita income and standard of
living; and (4) increased use of various types of communication technology?
251) List the five environmental forces that have an impact on an organization as well as its
suppliers and customers. Provide examples of factors that might be examined as part of
environmental scanning for each of these forces.
252) Identify the five environmental forces that affect an organization, and explain them using
the coffee industry as an example. What might you predict would be the future of the coffee
industry?
253) Give an example of how each of the five environmental forces can impact an organization’s
marketing environment.
254) Describe four generational cohorts that are of interest to marketers today.
255) Which generational cohort is also known as the baby bust? Describe the interests and
lifestyles of this cohort and explain why it is important to marketers.
256) Which generational cohort is often referred to as the echo-boom? Describe the interests and
lifestyles of this cohort and explain why it is important to marketers.
257) Explain the trends in the racial and ethnic composition of the United States. How can
marketers use this information?
258) How do the macroeconomic conditions as well as consumer income affect marketing?
259) Define technology. How does it affect marketing?
260) How does technology affect customer value?
261) Explain marketspace and electronic commerce and their relevance for marketing.
262) There are only three major recording labels in the world— Sony BMG, Universal Music
Group, and Warner Music Group. They are responsible for the vast majority of music recordings
that are made. Harry says that these three music companies operate as an oligopoly. Maryanne
says that they operate as monopolistic competition. Explain how each came to his or her
conclusion. Who is correct?
263) Explain the difference(s) between the Sherman Antitrust Act, the Clayton Act, and the
Robinson-Patman Act, all of which were enacted to protect competition.
135
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written consent of McGraw-Hill Education.
264) What is the difference between a patent and a copyright? Digital technology has required
what additional recent legislation?
Answer: A patent gives inventors of new and novel products the right to exclude others from
making, using, or selling products that infringe the patented invention. A copyright gives the
author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or
otherwise copy that work. Copyright is secured automatically when the work is created. Digital
technology has necessitated additional copyright legislation, called the Digital Millennium
Copyright Act (1998), to improve protection of copyrighted digital products.
Difficulty: 2 Medium
Topic: Product-Related Legislative
Learning Objective: 03-06 Explain the major legislation that ensures competition and regulates
the elements of the marketing mix.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
265) What actions does the Federal Trade Commission have the power to implement when
dealing with deceptive or misleading advertising and unfair business practices?
266) Some industries have opted for self-regulation of their members to ensure that each acts
fairly. Discuss potential problems associated with self-regulation, and give an example of it.
267) Many changes in the environment occurred to create the need for the services of Best Buy’s
Geek Squad. Future changes are also likely to change the way Geek Squad operates. An
environmental scan helps illustrate the changes. What are some of the key changes that are
occurring?
268) To continue to grow, Best Buy’s Geek Squad will need to continue to scan the environment
and try new approaches to creating customer value. What are some of the key new approaches
that Geek Squad could explore?