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85. Marketers are keenly aware that good marketing alone is not enough to win the hearts and minds of
consumers anymore. Now, marketers must market in a socially responsible manner or risk alienating consumers
in ways that can be irreparable. Which one of the following statements is true regarding social responsibility?
a. Government legislation can mandate socially responsible actions.
b. Consumer activism cannot promote social responsibility.
c. There are five dimensions of social responsibility.
d. Consumers demand that marketers give more weight to profits than to social well-being.
e. The traditional concept of social responsibility only extended to employees.
86. The regulatory agency that can require advertisers to provide additional information about products in their
advertisements is the _____.
a. Federal Trade Commission (FTC)
b. Environmental Protection Agency (EPA)
c. Food and Drug Administration (FDA)
d. Federal Advertising Commission (FAC)
87. Which of the following is an example of indirect competition?
a. A Sony home entertainment system competing with a Jacuzzi hot tub
b. An ExxonMobil station opening across the street from a Shell retail outlet
c. Competition among Verizon, AT&T, and T-Mobile
d. The purchase of a Honda Accord competing with a Toyota Camry
88. A local furniture store was recently penalized for continuously using a “going out of business” message in its
marketing communications to influence shoppers to visit the store and assume that prices would be very low.
This ethical issue is linked to the _____ variable of the marketing mix.
a. promotion
b. product
c. distribution
d. price
89. Advantages of technology include all of the following except:
a. new products.
b. increased costs.
c. better customer service.
d. more efficient distribution.
90. It is believed that marketers need to reevaluate their strategies and concentrate on their most promising
products during the _____ stage of the business cycle.
a. recession
b. recovery
c. maturity
d. prosperity
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91. Which one of these is NOT an example of how marketers have responded to society’s demographic shifts
and changing values ?
a. Selling more ecologically friendly, greener products
b. Offering lower cost products to match a close competitor’s choices
c. Developing health care products for the aging baby boomer generation
d. Creating a new Spanish-language streaming service
e. Selling ready-to-eat meals for busy families
92. The _____ component of the marketing environment consists of laws that require firms to operate under
competitive conditions and to protect consumer rights.
a. economic
b. competitive
c. social-cultural
d. political-legal
93. News reports from Zimbabwe indicate that a small pack of locally produced coffee beans costs
approximately 1 billion Zimbabwean dollars, an amount that would have bought 60 new cars less than ten years
ago in the same country. It can be surmised that Zimbabwe is experiencing extremely high levels of _____,
which has spiraled out of control in the past ten years.
a. growth
b. stagflation
c. deflation
d. inflation
94. Kia Motors has gained consumer confidence and increased sales through its warranty program that includes
a 10-year and 100,000 mile limited warranty. Kia Motors notes that all warranties are “limited” and consumers
are encouraged to read the fine print to fully understand what the warranty covers. To which element of the
marketing mix is the warranty linked when considering a company’s ethical behavior?
a. product
b. price
c. promotion
d. distribution
95. Brock recently graduated from college and began his job as a media analyst earning $50,000 per year. He
wants to start saving for retirement and use a weekly budget to keep him from spending too much money. He
determines that his _______ income is $120 per week for entertainment, dining out, clothes, and other non-
essential items.
a. discretionary
b. net
c. gross
d. frivolous
96. Marketers’ standards of conduct and moral values is termed as _____.
a. social marketing
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b. corporate identity
c. green marketing
d. marketing ethics
97. When determining a competitive strategy, marketers consider “In what markets should we compete?”
During this time, they are likely:
a. allocating resources to the areas of greatest opportunity.
b. considering their objectives and profit potential.
c. making product, distribution, pricing, and promotion decisions.
d. determining how to create a competitive advantage.
98. The history of U.S. government regulation can be divided into four phases: the antimonopoly period, _____,
consumer protection, and industry deregulation.
a. protecting trade
b. protecting competitors
c. protecting cyberspace
d. protecting privacy
99. The overall health of the economy has a significant impact on consumers’ ability and willingness to
purchase goods and services. The most reliable measure of the economy’s health is the sum of all final goods
and services produced in the country in a given period. This measure is called ____________.
a. National income
b. Gross national product
c. Consumer expenditures
d. Gross domestic product
e. Corporate profits
100. Which of the following usually indicates a strong economy?
a. Growth in services such as banking and restaurants
b. Cautious spending by businesses and consumers
c. A focus on basic, functional products with lower price tags
d. Increase in purchasing power coupled with uncertain consumer demand
101. A market structure in which a single seller dominates trade in a good or service for which buyers can find
no close substitutes is called a(n) _____.
a. oligopoly
b. monopoly
c. monopsony
d. perfect market
102. When determining a competitive strategy, marketers ask all of the following questions except:
a. In what markets should we compete?
b. How should we compete?
c. Should we compete?
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d. Against which competitors should we compete?
103. You own a high-end restaurant competing for the business of well-heeled diners. Now you’re worried, because a
gourmet takeout store just opened across the street. The new store will mean increased _____ competition.
a. direct
b. indirect
c. generic
d. mealtime
e. price
Indicate one or more answer choices that best complete the statement or answer the question.
104. It’s not only the government that regulates what toys your store can sell to children. Non-governmental regulatory
forces include:
a. Public consumer interest groups focused on protecting kids
b. Private consumer interest groups focused on protecting kids
c. Self-regulatory organizations
d. Better Business Bureau
e. Consumer Product Safety Commission
105. You just had a job interview at a firm that develops housing complexes around the country. The interviewer seemed
impressed by your knowledge of the complex political-legal environment affecting the industry. Which level(s) of
government impose(s) regulations on real estate developers – as well as on many other industries?
a. Federal
b. State
c. Local
d. Civic
e. Administrative
106. You feel strongly about working for a socially responsible company, so you are pleased when a prospective
employer brings this up. He shows you a set of statements that are posted in all the firm’s offices to remind people of the
basic steps in the social responsibility pyramid. Choose the statements that appear in this set.
a. Be profitable.
b. Obey the law.
c. Be ethical.
d. Be a good corporate citizen.
e. Put efficiency first.
107. A consultant has given you a list of questions to help determine a competitive strategy for your online editing
business. Which of the following questions were most likely included on the list? (Select all that apply)
a. Should we compete in the editing business?
b. Should we compete in the student market, or in the professional writing market?
c. How should we compete in the editing business?
d. Why should we compete in the editing business?
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108. How can marketers help companies to meet their social responsibility? What impact does social
responsibility have on the public’s perception of an organization? Give examples of companies that have
undertaken socially responsible initiatives.
109. Describe the role of ethics in the promotion of products and services.
110. Summarize the economic factors that influence marketing decision making and consumer buying behavior.
111. What are the questions that can help a company to determine a competitive strategy? Discuss.
112. What is consumerism? What can marketers do to protect the consumer’s right to be informed?
113. What is the role of the Federal Trade Commission (FTC) in the regulation of marketing activities?
114. What ethical issues might arise when developing a product strategy?
115. List out the four phases in the history of U.S. government regulations. Why were these regulations passed?
116. Define the terms inflation and deflation. Discuss their effects on the economy with the help of real-life
examples.
117. Differentiate between direct and indirect competition with examples.
118. Explain the importance of the technological environment on marketing.
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Answer Key
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