1 Activists include societal interest groups, their members, and anyone interested in their
causes.
(A) True
(B) False
2 Demonstrations _________.
(A) are the same thing as boycotts.
(B) are usually good for a company’s image and community relationship.
(C) are hardly ever used by activist groups.
(D) can boost morale for company employees.
(E) drive customers away and hurt the corporate image.
3 ________ include diverse organizations and interest groups working together temporarily
for a common interest.
(A) Lobbyists
(B) Special interest groups
(C) Coalitions
(D) Appeals boards
(E) Litigation
4 Of the eight strategies, ________ is a proactive strategy to help prevent activists from
taking issues to business or for resolving them in the early stages.
(A) gaining public sentiment
(B) discouraging community involvement
(C) accessing information
(D) issue identification
(E) problem solving
5 _________include donating, ignoring, opposing, negotiating, and working with activists.
(A) Marginalizing resources
(B) Dumbing down marketing techniques
(C) Global market strategies
(D) Activist negotiations
(E) Grand nonmarket strategies
6 _______are things that may happen, such as an event, problem, emergency, or expense
that might arise somewhat unexpectedly.
(A) Multiplicities
(B) Contingencies
(C) Grand nonmarket strategies
(D) Lockouts
(E) Advocacy advertising
7 Which statements about activists are correct?
(A) Activists rally support of society to take action that they would not have taken on their own
to meet activists’ special interests.
(B) Activists provide information about business activities to business, society, and government.
(C) Activists develop nonmarket agenda issues for business.
(D) Activists work with business to set voluntary standards and with the government to influence the
development of laws and regulations.
(E) Activists work with government to ensure that companies provide customers with products they desire
and can afford.
8 Which statement about societal and business interest groups are correct?
(A) Societal and business interest groups are similar in that both are nonprofit organizations
representing their members and other stakeholders.
(B) Business interest group members are primarily business firms whereas societal members are
individuals.
(C) They both get revenues from members.
(D) They both get revenues from selling products. However, business interest groups tend to provide
more services to their members than societal interest groups, so they raise more revenue by selling
products.
(E) None of these is correct.
9 Which of the following are true regarding the power that trade associations have?
(A) Unlike societal interest groups, business interest groups do not provide the interest group
with revenues.
(B) Many organizations belong to both trade and peak groups.
(C) Few business do their own advocating.
(D) Most large businesses do their own advocating.
10 Which statements about business interest groups are correct?
(A) They provide information to business, society, and government.
(B) They advocate for business but also present all stakeholders’ side of the issue to society and
government.
(C) They provide a variety of services to their members.
(D) They set mandatory standards for their members.
(E) Business interest groups also tend to provide far fewer services to their members.
11 Which statements about strategies activists use against business interest groups are
correct?
(A) Activista gain community public sentiment for being socially responsible as a proactive
strategy.
(B) Activists give very positive stories to the news media about businesses.
(C) Activists rarely use coalitions or interest groups working together.
(D) Activists use demonstrations (picketing and rallies) to pressure business for change.
(E) Activists use boycotts to request that society stop doing business with a firm.
12 Which statements about nonmarket strategies businesses use against activists are correct?
(A) Both activists and businesses have seven strategies they commonly use against each other.
(B) Five of the strategies are the same: grassroots efforts, news media relations and advocacy
advertising, coalitions, appeals to the government, and litigation.
(C) Activists are usually on the offensive, pressuring business and government for change, and business is
on the defensive trying to maintain the status quo.
(D) Activists are usually on the defensive.
(E) Activists develop a grand strategy to use to pressure business.
13 List and briefly describe four societal interest groups mentioned in the textbook.
Answer:
14 Define business interest groups.
Answer:
15 Describe in general terms the operations and finance of business interest groups and how
that is different from societal interest groups.
Answer:
16 What is the Better Business Bureau, and how does it operate?
Answer:
17 List five of the seven ways activist grassroots efforts mobilize members and supporters to
contact business and government .
Answer:
18 The __________ is a small and independent business advocate to government and serves
as a key resource for its members.
(A) National Federation of Independent Business (NFIB)
(B) Business Roundtable
(C) Better Business Bureau
(D) U.S. Chamber of Commerce
(E) Group in Behalf of Citizens
19 The ________ is a neutral third-party interest group that helps consumers and business
maintain an ethical marketplace.
(A) National Federation of Independent Business
(B) Business Roundtable
(C) Better Business Bureau
(D) U.S. Chamber of Commerce
(E) Group in Behalf of Citizens
20 Which statement about peak and trade interest groups is correct?
(A) Peaks have the disadvantage of members who have similar interests, which makes a unified
advocacy easy.
(B) Peak, or umbrella, interest groups represent businesses from several industries on a broad range of
general business interest issues.
(C) Peaks are larger in number and have the disadvantage of representing large numbers of companies
and industries with large resources.
(D) Trade groups represent businesses on a broader range of industry, and there more trade than peak
associations.
(E) Trade groups have the disadvantage of less unity of interest.
21 Business interest groups are part of the business market environment.
(A) True
(B) False
22 Business interest groups can be classified into two types: professional and nonprofessional
groups.
(A) True
(B) False
23 The Better Business Bureau is a peak interest group.
(A) True
(B) False
24 National Automobile Dealers Association (NADA) is a trade group.
(A) True
(B) False
25 As business develops nonmarket strategies, so do activists.
(A) True
(B) False
26 Activists are effective at developing and implementing strategies that pressure business to
change.
(A) True
(B) False
27 Watchtower is an association of chief executive officers of leading U.S. corporations that
serves as a business advocate to government.
(A) True
(B) False
28 The larger the grassroots efforts, the more pressure there is on the government to
investigate and on the business to voluntarily change its practices.
(A) True
(B) False
29 Activists use information strategies (outside sources, experts, and stakeholder support) to
tell their side of the issue.
(A) True
(B) False
30 Businesses should take a stakeholder management approach to strategy formulation and
implementation.
(A) True
(B) False
31 Unlike activists, business rarely appeal to the government.
(A) True
(B) False
32 Since litigation can be very expensive, it is commonly used as a scare tactic.
(A) True
(B) False
33 _________is an advocate for the public interest in the political process, holding elected
leaders accountable.
(A) Public Citizen
(B) The Consumer Federation of America
(C) Center for Public Integrity
(D) Watchdog
(E) Common Cause
34 ________ is a consumer advocate to the government.
(A) Public Citizen
(B) The Consumer Federation of America
(C) Center for Public Integrity
(D) Watchdog
(E) Common Cause
35 _________ are nonprofit organizations comprised of groups of firms joined together to
advocate their interest on issues.
(A) Societal interest groups
(B) Chambers of Commerce
(C) Business interest groups
(D) Peak interest groups
(E) None of these
36 _________ raise more revenue than _________ groups through membership products and
services.
(A) Societal interest groups, business interest groups
(B) Operations groups, finance groups
(C) Finance groups, Chambers of Commerce groups
(D) Business interest groups, societal interest groups
(E) Societal interest groups, benevolent order groups
37 What are the five Is of strategic analysis?
Answer: