82. The Children’s Online Privacy Protection Act prohibits websites and Internet providers from:
a. selling products to children under the age of 18.
b. seeking personal information from children under the age of 13.
c. selling products to children under the age of 12.
d. doing research about the buying habits of children under 15.
e. selling products to children under the age of 15.
83. Of all the federal regulatory units, the ____ most heavily influences marketing activities.
a. Food and Drug Administration (FDA)
b. Federal Communications Commission (FCC)
c. Environmental Protection Agency (EPA)
d. Federal Trade Commission (FTC)
e. Federal Power Commission (FPC)
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
84. After several children fell 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
85. The FTC can issue a cease-and-desist order, which is an injunction to:
a. report to the FTC immediately.
b. stop doing whatever caused the complaint.
c. appear before the courts.
d. pay for damages caused by negligence of the firm.
e. close down the firm until further notice.
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
86. In its advertisements for a light beer, Anheuser-Busch brewing company has decided to include a statement saying
“Know when to say when,” indicating that customers should know when to stop drinking. This is an example of a:
a. federal regulation.
b. state regulation.
c. city regulation
d. self-regulation
e. social regulation
87. Which of the following regulatory groups is a system of nongovernmental, independent, local regulatory agencies
supported by local businesses?
a. The Chamber of Commerce
b. The National Advertising Review Board
c. The National Advertising Division
d. The Better Business Bureau
e. American Marketing Association
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
88. The Pharmaceutical Research and Manufacturers of America sets guidelines for its member firms to follow
regarding the use of unethical practices. Thus, it is engaging in:
a. legislation.
b. lobbying.
c. self-regulation.
d. environmental scanning.
e. trade restraint.
89. Jared Bledsoe hired Green Gardens Corp., a local landscape firm, to plant trees and shrubs in his front yard. The
landscape looked beautiful after the work was completed. However, in just a few days many of the plants began to
die. When Jared complained to the manager of Green Gardens, the manager said that Jared must have done
somethingtothemthatcausedtheplantstodie,suchasoverwateringthem.GreenGardensdoesn’thaveany
moneybackguarantees.Jaredisangrythathecan’tgetarefundorreplacement.Atthistime,Jared’sbest course
of action would be to contact the:
a. local Chamber of Commerce.
b. Federal Trade Commission.
c. Sherman Commission.
d. Better Business Bureau.
e. local Small Claims Court.
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
90. The Better Business Bureau is probably the best-known:
a. nongovernmental regulatory group.
b. state-operated enforcement agency.
c. national evaluator of advertisements.
d. federal regulatory group.
e. self-regulatory unit operating at the national level.
91. In its advertisements, Regent Hair Care Products claims that its KLTR-14 gel will restore the hair of bald men.
Even though Regent shows supporting evidence in its ads, members of the National Advertising Review Board
(NARB) believe the claim is unsupportable. Which of the following actions can be taken by the National
Advertising Review Board?
a. Force Regent Hair Care Products to stop running the advertisement.
b. File a complaint with the Federal Trade Commission.
c. Fine Regent Hair Care Products for each time the ad appears.
d. Sue Regent Hair Care Products in federal court.
e. Sue Regent Hair Care Products in state court.
92. Which of the following statements about self-regulatory programs is false?
a. Self-regulatory programs are usually less expensive than governmental regulatory programs.
b. Self-regulatory programs’ guidelines generally are more realistic and operational.
c. Nongovernmental self-regulatory programs have neither the tools nor the authority to enforce guidelines.
d. Self-regulatory guidelines generally are stricter than governmental regulatory programs.
e. When a trade association sets up industry guidelines, some firms that are in the industry but not in the trade
association do not follow the guidelines.
93. Which of the following is an advantage that self-regulatory agencies such as the BBB and the NARB have over
governmental laws and regulatory agencies?
a. Firms must strictly abide by the rulings of self-regulatory agencies.
b. Establishment and implementation are usually less expensive.
c. They have better tools to enforce their rulings.
d. Guidelines are often stricter and create greater compliance from firms.
e. Money is very rarely an issue in enforcing decisions of self-regulatory agencies.
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
94. When a firm continues to violate what the Better Business Bureau believes to be good business practices, the
bureau _____.
a. leads a consumer boycott of the business
b. sues the chief executive of the business
c. imposes fines on the owners/managers of the business
d. supports legal ordinances against the business
e. warns consumers of the unfair practices
95. Which of the following national self-regulatory organizations screens advertisements?
a. Federal Advertising Review Division
b. National Advertising Review Board
c. Federal Communications Commission
d. Consumer Federation of America
e. Better Business Bureau
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
96. Technology is:
a. the formulation of scientific concepts.
b. the application of knowledge and tools to solve problems and perform tasks more efficiently.
c. a theoretical science.
d. one of the weakest marketing environment forces.
e. the result of research performed primarily by universities.
97. More than half of the research of technology created is paid for by:
a. corporations.
b. state and local governments.
c. the federal government.
d. large universities.
e. private investors.
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
98. While playing soccer Bryan suddenly fell and broke his arm. On his way to the hospital, he sees a billboard for The
Cleveland Clinic promoting its time-text service where he can call the number GET-TXT-TIME, and they will text
him the approximate waiting time at the closest three hospital locations. Thus, the Cleveland Clinic is providing
enhanced service to its patients by capitalizing on the _____ environmental force.
a. economic
b. competitive
c. political
d. legal and regulatory
e. technological
99. The broad nature of technology as it moves through society is referred to as _____.
a. reach
b. dynamics
c. environment
d. self-sustenance
e. impact
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
100. Which of the following is the best example of utilizing technology to improve consumer relationships?
a. Waiters recording orders on handheld computers
b. Surveying customers to determine their needs
c. Responding to changes in competitors’ prices
d. Introducing stringent package standards
e. Requiring dolphin-safe tuna
101. Technology assessment is:
a. measuring how much technology has been incorporated into an organization.
b. trying to foresee the effects of new products and processes on the firm’s operation and on society in general.
c. assessing the technologies that a company is currently using.
d. judging how a firm’s products affect society.
e. weighing the cost of new technology to determine whether a firm can afford to use it.
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
102. UPS Inc. is considering its distribution strategy for the next five years. As part of the strategy development, UPS
Inc. is investigating the use of radio frequency identification, consumer payments through smart phones, Facebook,
and Twitter and how they might use these to interface with their customers. UPS is most likely engaging in:
a. product differentiation.
b. monopolistic competition.
c. technology assessment.
d. distinctive promotional methods.
e. innovative marketing.
103. 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.
b. cultural values.
c. income levels.
d. consumerism.
e. subcultures.
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
104. People for the Ethical Treatment of Animals (PETA) have held protests against the sale of coats made of animal
furs. PETA’s efforts to change shoppers’ attitudes represent a ____ force for fur retailers.
a. technological
b. political
c. sociocultural
d. self-regulatory
e. controllable
105. By the turn of the twentieth century, the population of the United States had shifted to three large racial and ethnic
groups. These groups are:
a. Whites, Blacks, and Hispanics.
b. Asians, African-Americans, and Caucasians.
c. Asians, African-Americans, and Hispanics.
d. African-Americans, Native American Indians, and Caucasians.
e. Hispanics, Native-American Indians, and Caucasians.
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
106. In the near future, _____will become the second largest group in the United States.
a. Whites
b. African-Americans
c. Asians
d. Hispanics
e. Native American Indians
107. The Coca Cola Company has recognized the significant increase in population diversity within the U.S. soft-drink
market. Which one of the following best illustrates the company’s integration of this knowledge into its marketing
strategy?
a. Ads featuring nostalgic Americana
b. Bonus coupons in Cola twelve-packs
c. Ads featuring Hispanic actors and Tejano music
d. Ads in The New Yorker and Reader’s Digest
e. Ads aimed at children
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
108. The Classic Hotel Group has begun to offer entire floors of rooms in its hotels that are smoke-free, adults-only, and
pet-friendly. The Classic Hotel Group is responding to changes in:
a. technology.
b. the legal environment.
c. demographics.
d. its cultural values.
e. its cultural diversity.
109. Many well-known restaurants and corporations are changing to a completely smoke-free environment, and fewer
restaurants offer smoking and nonsmoking sections. These firms are responding to changes in:
a. federal law.
b. cultural values.
c. demographics.
d. consumerism.
e. technological forces.
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
110. Consumerism is a(n):
a. diverse group of individuals and organizations opposed to foreign producers that sell products in the United
States that are much cheaper than those produced by U.S. manufacturers.
b. social movement that is trying to encourage consumer satisfaction.
c. social movement that is reorganizing the Council of Better Business Bureaus.
d. attempt made by various individuals and organizations to protect the rights of consumers.
e. social movement that provides consumers with means for expressing satisfaction and expressing their
gratitude to producers.
111. AgroupofprotesterscarriessignsencouragingpeopletoboycottTheFarmer’sMarket,asmallgrocerystoreinan
urbanarea.TheprotestersclaimthatFarmer’stakesunfairadvantageofelderlyandminorityconsumersby
charging them as much as 20% higher prices than other locations in the suburbs. This protest is considered a part
of:
a. cultural diversity movement.
b. civil rights movement.
c. urban unrest cycle.
d. procompetitive movement.
e. consumerism movement.
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
Scenario 3.1
Meyers’ Sporting Goods, a national chain, has been doing business with Soljur Sports, a manufacturer of
skateboards, for several years. Recently, it came to the attention of Meyers’ financial director that the average cost
per Soljur Sports skateboard had substantially increased over that of the previous year. The financial director asked
the marketing department if they knew what the Soljur skateboards cost at competing sporting goods stores, to see
if they too were likely hit with a higher cost.
The marketing department found that the Soljur skateboards were priced at $15 less in the competing store than at
Meyers. The financial director found that Soljur Sports was selling a similar number of skateboards to one of
Meyers’competitorsfor$10lessperskateboard.TheattorneyforMeyers’SportingGoodsimmediatelyfileda
complaint with the Federal Trade Commission.
112. Refer to Scenario 3.1. Suppose that the Soljur Sports company was actually discriminating against Meyer Sporting
Goods with its price increase. Which of the following acts prohibits this type of business behavior?
a. Sherman Antitrust Act
b. Wheeler-Lee Act
c. Robinson-Patman Act
d. Celler-Kefauver Act
e. Consumer Goods Pricing Act
113. Refer to Scenario 3.1. If the Federal Trade Commission believes that Soljur Sporting Goods is acting in violation of
the law, the first move for the FTC is to:
a. issue a cease-and-desist order.
b. issue a complaint stating that the business is in violation of the law.
c. seek a monetary penalty.
d. issue negative publicity about the company.
e. contact the sporting goods manufacturers association.
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
114. Refer to Scenario 3.1. A regular customer of Meyers Sporting Goods feels that some of its advertisements are
deceptive. He responded to an ad for sale of skateboards one hour after the store opened and found that none were
left. Where should he file a complaint?
a. Federal Advertising Commission
b. National Advertising Review Board
c. Consumer Product Safety Commission
d. National Advertising Division
e. Office of Consumer Affairs
115. Refer to Scenario 3.1. Suppose that a customer has a complaint against Meyers Sporting Goods Stores. He files a
complaint with the Better Business Bureau (BBB). What action could the BBB take against Meyers if the
complaint was substantiated and Meyers did not change the offending practice?
a. Issue a cease-and-desist order.
b. Seek a $10,000 monetary penalty.
c. Issue a warning to consumers through the local newspaper.
d. Order Meyers to make restitution.
e. Seek a $5,000 monetary penalty.
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
Scenario 3.2
Clayton Homes, a mobile home manufacturer since 1934, introduced its new iHome in 2009. The iHome is one of
the first of its kind, designed as an updated, modern version of the modular home, offered as a base home plus add-
onsknownas“pods.”Thebasehomeisaonebedroom,onebath734squarefootversionatapriceofaround
$80,000. There is also a 1,000 square-foot version for around $100,000. All versions may add on the additional
one-room pods as desired which are shipped to your location and constructed on-site. The homes offer galvanized
metalroofing,corrugatedsteelsiding,VOCfreepaints,anda“butterfly”roofthatcollectsrainwater.TheiHome
uses30%lessenergythanasimilarsquarefoothomeandoffers“green”characteristicsofsolarpanels,tankless
water heaters, and low-flow faucets. In addition, it comes with bamboo flooring, a renewable resource. The
modular,prefabricateddesignoffersendlessoptionsforcreatingthecustomer’shomeanditsengineeredbuilding
systemcutsdownonconstructionwaste.Duetothe“greeneffects”oftheiHome,thestategovernmentshave
given it a tax abatement for any sales taxes.
116. Refer to Scenario 3.2.
ThenewClaytonHomesiHomeproductisareflectionofthecompany’sattentionto____indevelopingits
strategy.
a. marketing research analysis
b. self-regulatory analysis
c. consumer behavior analysis
d. marketing information processing
e. environmental scanning and analysis
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
117. Refer to Scenario 3.2.Which of the following types of competitive structures is being followed by Clayton Homes?
a. Monopoly
b. Oligopoly
c. Monopolistic competition
d. Perfect competition
e. Monopsony
118. RefertoScenario3.2.TheiHome’sreductionofenergyuse,renewableresourcesasmaterials,“pod”
customization, reduction of construction waste, and tax abatement status is/are examples of reaction to _____
environmental forces.
a. political and sociocultural
b. political, sociocultural, and economic
c. sociocultural and economic
d. political and economic
e. political, economic, sociocultural, and technological
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
119. Refer to Scenario 3.2. Clayton Homes is revising its marketing strategy for the iHome due to the current recession.
Which of the following is the best action for promoting the iHome in the near future?
a. Emphasize the value of the iHome products.
b. Focusonthe“green”qualitiesofthehomeandtargetenvironmentallyconsciousindividuals.
c. Significantly reduce advertising expenditures to create an exclusive image.
d. Decrease production until the economy improves.
e. Significantly reduce the prices on the company’s product offerings.
120. Refer to Scenario 3.2. The income a consumer would use to purchase an iHome is considered as _____.
a. discretionary income
b. buying power
c. disposable income
d. consumer spending
e. comprehensive spending
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics