204. The strength of one’s buying power depends partially on the state of the economy.
a. True
b. False
205. An individual’s after-tax income is called his or her discretionary income, which is used for spending and/or saving.
a. True
b. False
206. Disposable income is used to pay taxes, spend, and save.
a. True
b. False
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
207. The total amount of disposable income is affected by the amount of taxes consumers pay.
a. True
b. False
208. Decreases in taxes lead to decreases in disposable income.
a. True
b. False
209. Credit increases future buying power.
a. True
b. False
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
210. An individual can have a high income and very little wealth.
a. True
b. False
211. Wealth is an accumulation of past income, natural, and financial resources.
a. True
b. False
212. If a person has buying power, he or she is influenced only by a product’s absolute price.
a. True
b. False
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
213. Wealth enables consumers to gain buying power.
a. True
b. False
214. One of the factors that affect willingness to spend is general economic conditions.
a. True
b. False
215. Political and legal forces in the marketing environment are closely interrelated.
a. True
b. False
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
216. Proactive marketers think that political forces are beyond their control.
a. True
b. False
217. If political officials have positive feelings toward particular firms or industries, they are less likely to create or
enforce laws and regulations that are unfavorable for business organizations.
a. True
b. False
218. A recent U.S. Supreme Court decision has authorized the government to ban corporate spending in candidate
elections for political offices.
a. True
b. False
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
219. Many laws that directly influence marketing activities were enacted either to preserve a competitive atmosphere or
to protect consumers.
a. True
b. False
220. The Sherman Antitrust Act is a procompetitive law.
a. True
b. False
221. All marketers interpret laws and regulations conservatively and strictly to avoid violating a law.
a. True
b. False
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
222. The Food and Drug Administration influences marketing activities the most.
a. True
b. False
223. Numerous self-regulatory programs have been created to stop or stall the development of laws and government
regulatory groups that would regulate marketing practices.
a. True
b. False
224. Although numerous regulatory forces arise from governmental sources, nongovernmental regulatory forces may
also affect marketing decisions.
a. True
b. False
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
225. A good example of a government regulatory group at the local level is the Better Business Bureau.
a. True
b. False
226. The Council of Better Business Bureaus and the FTC make up the National Advertising Review Board (NARB).
a. True
b. False
227. All members of an industry are bound to follow trade association guidelines.
a. True
b. False
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
228. Technology is the application of knowledge and tools to solve problems and perform tasks more efficiently.
a. True
b. False
229. Technological developments have a direct impact on creating and maintaining a marketing mix.
a. True
b. False
230. Technological changes do not directly affect what, how, when, and where products are marketed.
a. True
b. False
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
231. Personal computers and cellular phones are technological revolutions.
a. True
b. False
232. Technology affects the types of products offered to consumers.
a. True
b. False
233. Technology can help marketers become more productive.
a. True
b. False
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
234. Firms always adopt and use new technology.
a. True
b. False
235. Through technology assessment, managers try to foresee the effects of new products and processes on the firm’s
operations and on society.
a. True
b. False
236. An increasingly diverse cultural base in the United States means that marketers face increasingly diverse consumer
markets.
a. True
b. False
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics
237. Changes in values have little effect on people’s needs for products.
a. True
b. False
238. Changesinsocialandculturalvalueshavedramaticallyinfluencedpeople’sneedsanddesiresforproducts.
a. True
b. False
239. The major forces that make up the consumerism movement are consumer organizations and business organizations.
a. True
b. False
Chapter 3 – The Marketing Environment, Social Responsibility, and Ethics