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62) As a consequence of the green movement, many companies are developing strategies and
practices that support ________.
A) government intervention
B) environmental sustainability
C) deregulation
D) mass marketing
E) rapid exploitation of natural resources
63) Many firms today use RFID technology to ________.
A) identify new target markets
B) analyze threats and opportunities in the macroenvironment
C) move toward environmental sustainability
D) track products through various points in the distribution channel
E) track patterns of online consumer behavior
64) Many companies use RFID product labels on their goods, which exemplifies the ________
environment in business.
A) natural
B) political
C) economic
D) demographic
E) technological
65) A firm dumping chemical wastes in the local waterbody is ________.
A) actively resisting social change
B) contributing to organizational anarchy
C) engaging in a "do well by doing good" mission
D) adopting a proactive stance toward the marketing environment
E) contributing to increased pollution
66) New technologies most likely lead to ________.
A) economic imbalance in society
B) reduced exports
C) trade deficits
D) an increased demand for unskilled labor
E) fresh markets and opportunities
67) Which of the following is most likely a result of regulations set up by the Food and Drug
Administration and the Consumer Product Safety Commission?
A) The time between new product ideas and their introduction to the market has decreased.
B) Annual spending on research and development has decreased.
C) Research costs for companies have risen.
D) Product innovation has significantly declined.
E) Marketers have grown increasingly apathetic toward meeting safety standards.
68) The ________ environment consists of laws, government agencies, and pressure groups that
influence or limit various organizations and individuals in a given society.
A) socio-legal
B) cultural
C) political
D) technological
E) economic
69) Governments develop public policy to ________.
A) encourage deregulation
B) identify demographic patterns
C) identify cultural patterns
D) guide commerce
E) protect marketers
70) Laws are passed to define and prevent unfair competition primarily because ________.
A) business executives tend to favor pure monopolies
B) businesses sometimes try to neutralize threatening firms
C) governments in free market economies tend to nationalize ailing firms
D) private lobbying hurts the interests of national and state governments
E) most MNEs in advanced economies are averse to invest in emerging markets
71) Funco Inc., a toy manufacturer, sold plastic racing cars that were manufactured with toxic
materials, which threatened the health of several children. Under which of the following acts is
Funco most likely to be prosecuted?
A) Child Protection Act
B) Children's Online Privacy Protection Act
C) Magnuson-Moss Warranty Act
D) CAN-SPAM Act
E) Wheeler-Lea Act
72) The ________ prohibits monopolies and activities (price-fixing, predatory pricing) that
restrain trade or competition in interstate commerce.
A) Sherman Antitrust Act
B) Lanham Trademark Act
C) Fair Packaging and Labeling Act
D) CAN-SPAM Act
E) Magnuson-Moss Warranty Act
73) The ________ limits the number of commercials aired during children's programs.
A) Children's Online Privacy Protection Act
B) Child Protection Act
C) Fair Packaging and Labeling Act
D) Children's Television Act
E) Consumer Product Safety Act
74) A company or association's ________ is designed to help guide responses to complex social
responsibility issues.
A) code of ethics
B) marketing plan
C) non-disclosure policy
D) privacy policy
E) non-compete clause
75) The boom in Internet marketing has created a new set of social and ethical issues. Critics
worry most about ________.
A) accessibility
B) puffery in advertising
C) online privacy issues
D) sustainability
E) issues pertaining to efficiency
76) Cause-related marketing has become a primary form of ________.
A) quality control
B) corporate fraud protection
C) corporate giving
D) legislative lobbying
E) price discrimination
77) The ________ environment consists of institutions and other forces that affect a society's
basic values, perceptions, preferences, and behaviors.
A) social
B) cultural
C) political
D) physical
E) natural
78) Marketers should understand that people's core beliefs and values tend to be ________.
A) fixed
B) highly flexible
C) similar around the world
D) constantly and rapidly changing
E) easily influenced by secondary beliefs
79) Mercury Inc., an American MNC, is currently planning to enter the promising consumer
goods market in India. The firm will most likely discover that ________ beliefs and values are
more open to change in India.
A) inherited
B) secondary
C) primary
D) core
E) traditional
80) A society's ________ are expressed in how people view themselves and others,
organizations, society, nature, and the universe.
A) social codes
B) cultural values
C) demographics
D) public policies
E) norms
81) Which of the following is most likely true with regard to people's views of organizations in
contemporary America?
A) In the American workplace, there has been an overall increase in organizational loyalty.
B) Most Americans are confident in their employers and are unlikely to switch jobs as frequently
as in the past.
C) The past two decades have seen a sharp decrease in confidence in and loyalty toward
America's business organizations.
D) Most U.S. workers view work as a source of personal satisfaction and organizational pride.
E) In the last decade, corporate scandals and layoffs had little impact on people's confidence in
U.S. firms.
82) People vary in their attitudes toward their society—while ________ defend it, malcontents
want to leave it.
A) reformers
B) patriots
C) activists
D) environmentalists
E) historical revisionists
83) Which of the following is a potential downside to using patriotic themes in marketing
programs?
A) Consumers rarely respond to patriotic marketing messages in a favorable manner.
B) A consumer's societal orientation has no visible impact on product consumption.
C) Patriotism could be viewed as an attempt to gain from a nation's triumphs.
D) Patriotic Americans may have less disposable income than reformers.
E) Mass marketing has limited appeal among patriotic Millennials.
84) Consumers in the "lifestyles of health and sustainability" (LOHAS) market are more likely to
seek ________.
A) alternative medicine
B) perfumes made from animal products
C) clothing made of fur
D) leather goods
E) foods high in saturated fat
85) The fact that people are dropping out of organized religion doesn't mean that they are
abandoning their faith. Some futurists have noted a renewed interest in ________, perhaps as a
part of a broader search for a new inner purpose.
A) taming nature
B) the fine arts
C) charitable giving
D) spirituality
E) materialism
86) A regional supermarket chain runs print, radio, and television advertisements announcing
that 1 percent of each of its sales is donated to local after-school programs for underprivileged
youth. This is an example of ________.
A) cause-related marketing
B) generational marketing
C) sustainable marketing
D) market segmentation
E) product differentiation
87) Taurus Automobile's Arrow is the first mass-produced hybrid vehicle, known for its fuel
efficiency and environmental friendliness. The Arrow is most likely to become popular in the
________ market.
A) SOHO
B) LOHAS
C) LGBT
D) business
E) Millennials'
88) Ursula Jenkins, a fifty-one-year-old school teacher from Nebraska, believes that people
should choose a profession they like, which is an example of Ursula's ________.
A) secondary belief
B) core belief
C) core value
D) work ethic
E) moral code
89) A pastor from Kansas believes that adultery is immoral. This refers to the pastor's ________.
A) secondary belief
B) acquired belief
C) social identity
D) core belief
E) cultural orientation
90) Rather than assuming that strategic options are bounded by the current environment, firms
adopting a(n) ________ to the marketing environment develop strategies to change the
environment.
A) environmental stance
B) proactive stance
C) reactive stance
D) relativist approach
E) no-compromise approach
91) Companies that take a proactive stance toward the marketing environment are most likely to
________.
A) develop strategies to change the environment in their favor
B) passively accept the marketing environment
C) resist organizational change
D) discourage innovation
E) consider technological advances more disruptive than beneficial
92) Sarah Parker is a senior manager in a manufacturing firm that hires lobbyists to influence
legislation that affects the manufacturing industry. Sarah's firm takes a(n) ________ stance
toward the marketing environment.
A) reactive
B) proactive
C) adversarial
D) passive
E) altruistic
93) Which of the following is most likely influenced by marketers?
A) population shifts
B) core cultural values
C) income distribution
D) ethnic diversity
E) media
32
Refer to the scenario below to answer the following questions.
Casey Brickly opened The Landing, a convenience store on the north shore of Witmer Lake, in
1962. With a sandwich counter on one side and a bait shop and grocery on the other, The
Landing was an immediate hit with weekend lake visitors and local residents alike. In the
summer, boaters parked at the piers and bought all their fishing needs, such as rods and reels,
bait, snacks, and soft drinks at The Landing. Even during the winter months, snowmobilers and
ice fishermen were lured to The Landing for snacks and hot coffee or hot chocolate.
As time passed, the business changed and grew tremendously. What was formerly a weekend
tourist area gradually became a full-fledged residential area. Many of the houses, which were
built as cottages in the 1950s and 1960s, were remodeled into residential homes. By the end of
the 1970s, the days of small motor boats and 10 mile-per-hour speed limits were gone; skiing
and fast speed boats became the rage. Through it all, The Landing continued to attract flocks of
patrons.
In the 1980s, however, Casey started to realize that the grocery area in The Landing could not
compete with larger local retailers. He eventually enlarged the sandwich counter, transforming
the bait shop and grocery into a restaurant with a full menu typical of any diner.
"Getting rid of the bait shop was hard to do," Casey admitted. "I still had a summer crowd that
relied on us for their fishing needs, but we couldn't survive a whole year on four months of
profit."
In the early 2000s, the atmosphere of Witmer Lake and the neighboring lakes became upscale. "I
could see that people were spending more on their speed boats than what they had originally paid
for their cottages!" Casey exclaimed. Many of the cottages were inherited by children and
grandchildren of the original owners. Once again, the scene started to change as many of the lake
houses were used only as weekend lake homes. Unlike the previous generation, a vast number of
the current owners could afford to live closer to their jobs while maintaining lake homes. "At this
point, business wasn't growing," Casey said.
As local competition continued to increase, Casey converted the diner of The Landing into a bar
with a lounge area. "The change might have been too drastic," Casey said, "but it was the only
way we could maintain a strong, year-round business in spite of the population shifts and
competitive forces."
94) Which of the following microenvironment actors has had the most influence on The
Landing?
A) competitors
B) suppliers
C) marketing intermediaries
D) resellers
E) citizen-action publics
95) Which of the following is the macroenvironmental force that has had the greatest effect on
The Landing?
A) the demographic environment
B) the technological environment
C) marketing intermediaries
D) the political environment
E) citizen-action publics
96) Which of the following is the macroenvironmental force that benefitted The Landing the
most?
A) the legal environment
B) the natural environment
C) the economic environment
D) the political environment
E) the technological environment
97) Which of the following generational groups is most likely to represent the present owners of
cottages surrounding Witmer Lake?
A) Baby Boomers
B) Echo Boomers
C) Silent Generation
D) Lost Generation
E) Millennials
98) The aim of the entire value delivery network is to serve target customers and create strong
relationships with them.
99) The microenvironment consists of larger societal forces that affect a company, such as
demographic, economic, political, and cultural forces.
100) The macroenvironment consists of the factors close to the company that affect its ability to
serve its customers, such as suppliers, customer markets, competitors, and publics.
101) A company's marketing environment excludes the actors and forces outside marketing that
affect marketing management's ability to build and maintain successful relationships with target
customers.
