Name:
Class:
Date:
chapter 3
Page 61
a. The monopolistic competition structure is properly classified.
b. The monopoly and oligopoly structures’ classifications should be reversed.
c. The monopoly structure is properly classified.
d. The oligopoly structure is properly classified.
e. The pure competition and oligopoly structures are properly classified.
344. A person’s buying power is a function of
a. disposable income.
b. past income, natural resources, and financial resources.
c. wages, rents, and investments.
d. income, wealth, and credit.
e. discretionary income.
345. A marketing ethics issue likely exists when
a. company members disagree about a marketing decision.
b. an activity does not benefit the organization but benefits the environment.
c. an activity results in increased prices for the consumer.
d. a consumer is dissatisfied with a marketing decision.
e. an individual or organization must choose from among several actions that must be evaluated as right or wrong.
346. Marketers who attempt to influence and change the various environmental forces have a(n) ____ response to these
forces.
a. reactive
b. inactive
c. variable
d. positive
e. proactive
347. Angela organized a boycott of a local restaurant because of the owner’s obvious prejudicial treatment of Hispanics.
Angela’s action would most likely be called
a. lobbying.
b. a public service announcement.
c. the right to be informed.
d. a social demonstration.
e. consumerism.
348. What type of competitive structure exists when just a few sellers control a large portion of the supply of a product?
a. Monopoly
b. Oligopoly
c. Monopolistic competition
d. Mixed competition
e. Pure competition
349. Many health care companies are making adaptations to meet the needs of an aging population as the demand for
medical services and products such as diabetes supplies increases. This change in marketing strategy is best explained by
a change in
a. demographics.
Name:
Class:
Date:
chapter 3
Page 62
b. cultural values.
c. income levels.
d. consumerism.
e. subcultures.
350. A _______________ orientation helps to redefine the marketers’ focus by encouraging them to broadly considering
those entities most impacted by the marketers’ actions. Those entities include; employees, suppliers, regulators,
shareholders, customers, and the community.
a. shareholder value
b. profit
c. market
d. stakeholder
e. compliance
Scenario 3.5. The Consumer Financial Protection Bureau settled a claim with the Bank of America for deceiving
customers and unfairly billing them for services such as credit monitoring and identity theft protection. Bank of America
agreed to provide refunds to 2.9 million people and pay $45 million in fines for their illegal credit card practices. Their
deceptive practices dated to 2000 where they had billed customers for products such as “Privacy Guard” or “Privacy
Assist” without first obtaining authorization for the products. The $45 million in fines includes $25 million as a civil
penalty that will be paid to the Office of the Comptroller of the Currency and $20 million to the Consumer Financial
Protection Bureau. The Bureau also claims that Bank of America deceived about 1.4 million customers into making about
$268 million in payments by, among other things, improperly telling them the first 30 days of coverage were free or the
benefits were greater than existed.
351. Refer to Scenario 3.5. Bank of America was offering new products designed to protect individuals from identity
theft. Consumer concerns about identity theft represents
a. changes in cultural values
b. changes in technological forces
c. changes in the competitive environment
d. economic changes
352. During which stage of the business cycle is unemployment low and total income relatively high?
a. Repression
b. Prosperity
c. Recovery
d. Recession
e. Depression
353. The type of competitive structure that exists in the case where there are almost no substitutes for a product is a(n)
a. monopolistic competition.
b. oligopoly.
c. pure competition.
d. monopoly.
e. noncompetition.
354. In 2009 the Coca-Cola Company introduced the “Freestyler,” a new free-standing soda dispensers where consumers
can chose from over 120 different types of soda and customize their drink. Freestylers would take the place of typical
dispensers where there are only a few different types of soda brands available. In order to develop the new dispenser,
Name:
Class:
Date:
chapter 3
Page 63
Coca-Cola collected information on the soda-drinking habits of individuals in several different age groups, as well as
information about new technologies for dispensing liquids from vending machines and the sales of its “fountain” syrup for
national restaurant chains to use in their soda machines. Coca-Cola’s collection of this information is an example of
_____ while the assessment of its impact on the potential for the new “Freestyler” is an example of _________.
a. environmental scanning; environmental analysis
b. an environmental force; environmental scanning
c. environmental analysis; environmental strategy
d. strategizing; environmental scanning
e. strategic management; environmental scanning
355. The amount of money received through wages, rents, investments, pensions, and subsidies is called
a. income.
b. wealth.
c. discretionary income.
d. prosperity.
e. credit.
356. Consumer confidence is at a low during periods of
a. recession.
b. prosperity.
c. recovery.
d. slowdown.
e. depression.
357. International Office Supplies Wholesaler charges different prices to its various customers without any legal
justification. This company is in violation of the
a. Sherman Antitrust Act.
b. Wheeler-Lea Act.
c. Lanham Act.
d. Federal Trade Commission Act.
e. Robinson-Patman Act.
358. Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during
periods of economic
a. recovery.
b. prosperity.
c. recession.
d. uncertainty.
e. expansion.
359. The Transportation Division of the GE Corporation is located in a small city which has limited economic growth at
this time. Due to the condition of the local school system, GE contributed $2 million to repair and revive it, stating that
GE believed in education for the community. This action would imply that GE is in which level of the pyramid of social
responsibility?
a. ethical
b. legal
c. cost
d. philanthropic
Name:
Class:
Date:
chapter 3
Page 64
e. economic
360. While playing soccer, Bryan suddenly fell and broke his arm. Needing to get to the hospital, he was not only
interested in the nearest location, but also the shortest emergency room wait time. He remembered seeing a billboard for
The Cleveland Clinic promoting their time-text service where he could call the number GET-TXT-TIME and they would
text him the approximate waiting time at the closest three hospital locations. The Cleveland Clinic is providing enhanced
service to its patients by capitalizing on which environmental force?
a. Economic
b. Competitive
c. Political
d. Legal and regulatory
e. Technological
361. A business that contributes resources to the community to improve the quality of life is taking on a(n) ____
responsibility.
a. ethical
b. legal
c. cost
d. philanthropic
e. economic
362. After several children became ill while playing with toys imported from outside the U.S., medical researchers found
several illegal chemicals, including lead in the paint. These toys were sold primarily through websites on the Internet.
Which of the following agencies would most likely have jurisdiction over the problem with lead in the paint of children’s
toys?
a. Consumer Product Safety Commission
b. Children’s Online Protection Act
c. Food and Drug Administration
d. Environmental Protection Agency
e. National Advertising Review Board
363. Codes of conduct are also frequently known as
a. ethics mandates.
b. codes of ethics.
c. corporate culture.
d. ethics compliance programs.
e. moral codes.
364. The RedCap Corporation is committed to social responsibility. It is looking for a new shipping partner and has found
LogiSpec, one that seems to be perfect since it employs individuals with disabilities, contributes a portion of profit to the
local school system, and allows its employees to work on flex-time. RedCap is very interested in LogiSpec’s attention to
social responsibility. However, its pricing is almost 12% higher than other shippers RedCap is considering. The fact that
RedCaps’ decision has to balance the company’s desire for social responsibility and investors’ desires for profits is an
example of a(n) ____ responsibility.
a. ethical
b. legal
c. cost
d. philanthropic
Name:
Class:
Date:
chapter 3
Page 65
e. economic
365. If Starbucks were to donate 5 percent of every coffee purchase to shelters for victims of domestic abuse for one
month, this would be an example of
a. strategic philanthropy.
b. ethical responsibility.
c. economic responsibility.
d. green marketing.
e. cause-related marketing.
366. In 2000, two childhood friends began working together to create a line of cleaning products that were beautifully
designed, didn’t smell like chemicals, and could be a design element rather than hidden in someone’s kitchen cabinet. The
company, Method was established in 2001 and gained its first sale of cleaning sprays to a local grocery store. The
company founders, Adam Lowry and Eric Ryan are committed to sourcing products that come from plants—not chemical
plants. They never test their products on humans or animals and ensure that they make products that are safe for every
surface, especially earth’s surface. In 2004, Method was the first company to mass market a concentrated laundry
detergent in the United States that provided consumers with the opportunity to reduce the amount of packaging and waste
associated with the packaging. Method emphasizes the _________ issue of social responsibility as a strategy to connect
with customers and generate sales.
a. sustainability
b. consumerism
c. community relations
d. greenwashing
367. Actions that promote human health and welfare address the ____ dimension of the pyramid of social responsibility.
a. philanthropic
b. legal
c. ethical
d. economic
e. social
368. Which one of the following statements about codes of conduct (ethics) is false?
a. They are formalized rules and standards that describe what a company expects of its employees.
b. They must be detailed enough to take into account many possible situations.
c. They encourage ethical behavior by eliminating opportunities for unethical behavior because employees know
what is expected of them.
d. They help marketers deal with marketing issues by prescribing and limiting certain activities.
e. Top management must provide leadership in implementing codes of ethics.
369. Describe what is meant by a consumer’s buying power. How might this affect a marketing strategy?
370. Explain the difference between procompetitive legislation and consumer protection laws.
371. Contrast recession and depression.
Name:
Class:
Date:
chapter 3
Page 66
372. What are the major forces that are referred to as sociocultural forces and how do they present marketers with both
challenges and opportunities?
373. What are some ways to determine if an activity is ethical or socially responsible?
374. What roles do the Better Business Bureau and the National Advertising Review Board play in self-regulation of
business?
375. Why must marketers be aware of new developments in technology?
376. Provide an overview of important social responsibility issues in marketing, and indicate their impact on marketing
decisions.
377. How can a code of conduct encourage ethical behavior in an organization?
378. In what ways is the United States becoming an increasingly diverse nation in terms of culture?
379. Define and describe the importance of social responsibility in marketing.
380. Discuss the difference between social responsibility, ethics, and sustainability in marketing.
381. Explain how a period of recession might affect the marketing of a product.
382. Describe several ways in which federal agencies influence marketing activities.
383. Explain the differences between the competitive structures of a monopoly and an oligopoly.
384. Define marketing citizenship and describe the impact of its dimensions on organizations.
385. Discuss some of the important ethical issues in marketing.
386. Describe the factors that influence the ethical decision-making process and identify ways to improve ethical
decisions in marketing.
387. Given a new brand of barbecue sauce for which to develop a marketing strategy, describe how you would conduct
environmental scanning and analysis.
Name:
Class:
Date:
chapter 3
Page 67
Answer Key
Name:
Class:
Date:
chapter 3
Page 68
Name:
Class:
Date:
chapter 3
Page 69
Name:
Class:
Date:
chapter 3
Page 70
Name:
Class:
Date:
chapter 3
Page 71
Name:
Class:
Date:
chapter 3
Page 72