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c.
recession.
d.
depression.
e.
recovery period.
59. Consumer confidence is at a low during periods of
a.
recession.
b.
prosperity.
c.
recovery.
d.
slowdown.
e.
depression.
60. Consumer confidence and willingness to spend begins to increase during periods of ____, and marketers must remain
very flexible to make the necessary adjustments.
a.
depression
b.
prosperity
c.
recovery
d.
growth
e.
recession
61. The strength of a person's "buying power" depends on economic conditions and
a.
level of income.
b.
size of resources that can be traded in an exchange.
c.
how much a consumer will buy.
d.
a consumer's spending pattern.
e.
levels of median wealth.
62. Why are marketers interested in consumers' levels of disposable income?
a.
It accurately predicts future buying power.
b.
It increases current buying power.
c.
It is what is left after taxes and savings to buy luxuries with.
d.
It is a ready source of buying power.
e.
It is essential for forecasting future business trends.
63. The amount of money received through wages, rents, investments, pensions, and subsidies is called
a.
income.
b.
wealth.
c.
discretionary income.
d.
prosperity.
e.
credit.
64. If Julio Ruiz has an income of $30,000, pays $6,000 in rent, $1,200 in utilities, and $5,000 in taxes per year, his
disposable income is
a.
$7,800.
b.
$14,000.
c.
$9,000.
d.
$25,000.
e.
$20,000.
65. Which category of income are marketers most interested in?
a.
Wealth
b.
Disposable income
c.
Discretionary income
d.
Total income
e.
Extra income
66. A person's buying power is a function of
a.
disposable income.
b.
past income, natural resources, and financial resources.
c.
wages, rents, and investments.
d.
income, wealth, and credit.
e.
discretionary income.
67. Discretionary income is associated with all of the following except
a.
automobiles.
b.
education.
c.
pets.
d.
furniture.
e.
food.
68. Lindsay was reviewing her bank statement for last month. She had paid her rent, her car payment, electric and phone
bills, and made three trips to the grocery. Lindsay had also bought tickets to a Katy Perry concert and new clothes to wear
to the concert. The money spent on Lindsay’s rent, car, electric and phone bills was likely from her ____ , while the
money spent on the concert tickets and new clothes was from her _____.
a.
Disposable income; savings
b.
Gross income; disposable income
c.
Disposable income; net income
d.
Disposable income; discretionary income
e.
Gross income; Savings income
69. The accumulation of past income, natural resources, and financial resources is known as
a.
income.
b.
collected income.
c.
credit.
d.
wealth.
e.
savings.
70. Which of the following companies would probably be most interested in tracking discretionary income levels?
a.
Safeway food stores
b.
BMW automobiles
c.
Gulf States Utilities
d.
General Mills
e.
Florida Orange Growers
71. By offering both credit and financing through its GMAC division, General Motors is trying to help consumers
a.
expand future buying power at the expense of current buying power.
b.
expand disposable income at the expense of discretionary income.
c.
expand current buying power at the expense of future buying power.
d.
expand both disposable income and wealth.
e.
decrease both disposable and discretionary income.
72. When using credit to make purchases, consumers are
a.
decreasing current buying power and increasing future buying power.
b.
increasing their present discretionary income to extend purchasing power.
c.
putting themselves at significant risk of financial disaster.
d.
forgoing the accumulation of wealth to increase current income.
e.
increasing current buying power at the expense of future buying power.
73. Which of the following terms refers to consumers' propensity to buy?
a.
Disposable income
b.
Discretionary income
c.
Buying power index
d.
Buying power
e.
Willingness to spend
74. Shelby's new job with the federal government provides a comfortable income and a fairly stable income. She would
like to buy a new car now that she has a job; however, Shelby hesitates to purchase a new car because she is concerned
about how poor economic conditions may affect her position in the future. Shelby lacks
a.
disposable income.
b.
willingness to spend.
c.
buying power.
d.
credit.
e.
discretionary income.
75. Texas rice farmers wish to get their product into the Japanese market but are hindered by a complex maze of
regulations imposed by the Japanese government. The farmers are most likely to attempt to influence which aspect of the
marketing environment?
a.
Sociocultural
b.
Technological
c.
Competitive
d.
Economic
e.
Political
76. Textile companies historically face issues concerning the use of child labor in foreign countries and the various
regulations created concerning this labor. The type of marketing environment forces executives for these companies are
most likely to try to influence are ____ forces.
a.
economic
b.
competitive
c.
political
d.
environmental
e.
sociocultural
77. Which of the following statements is true?
a.
Political officials can-not influence how much a government agency purchases and from whom.
b.
The U.S. Supreme Court ruled that the government is not authorized to ban corporate spending in candidate
elections.
c.
Company sponsored political advertising can only focus on topics and not on candidates.
d.
Political officials can-not accept direct corporate campaign contributions.
e.
Companies can-not participate in the political process through lobbying.
78. Which of the following actions is illegal?
a.
Political officials influencing how much a government agency purchases and from whom.
b.
Corporate contributions to candidates.
c.
Corporate contributions to elected officials.
d.
Political officials helping businesses secure foreign markets.
e.
Paying political officials not to enforce a particular law.
79. Which of the following acts was enacted to prevent businesses from restraining trade and monopolizing markets?
a.
Sherman Antitrust Act
b.
Clayton Act
c.
Federal Trade Commission Act
d.
Robinson-Patman Act
e.
Wheeler-Lea Act
80. If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating
the
a.
Wheeler-Lea Act.
b.
Clayton Act.
c.
Robinson-Patman Act.
d.
Sherman Antitrust Act.
e.
Celler-Kefauver Act.
81. Which of the following provides protection for and regulates brand names, brand marks, trade names, and trademarks?
a.
Sherman Antitrust Act
b.
Clayton Act
c.
Robinson-Patman Act
d.
Lanham Act
e.
Celler-Kefauver Act
82. Procompetitive laws are those designed to
a.
preserve competition.
b.
protect the consumer.
c.
ensure product safety.
d.
reduce competition.
e.
limit business lobbying of government officials.
83. International Office Supplies Wholesaler charges different prices to its various customers without any legal
justification. This company is in violation of the
a.
Sherman Antitrust Act.
b.
Wheeler-Lea Act.
c.
Lanham Act.
d.
Federal Trade Commission Act.
e.
Robinson-Patman Act.
84. Price discrimination is prohibited by the ____ Act.
a.
Sherman Antitrust
b.
Wheeler-Lee
c.
Robinson-Patman
d.
Celler-Kefauver
e.
Consumer Goods Pricing
85. The 1990 Nutrition Labeling and Education Act directly prohibits
a.
exaggerated claims made by health and fitness products.
b.
putting the words "cholesterol-free" on any food package.
c.
putting nutritional information on most food products.
d.
exaggerated health claims on food packages.
e.
the use of any health claim on food packaging.
86. Consumer protection legislation deals with all of the following legal concerns except
a.
consumer safety.
b.
sale of hazardous products.
c.
monopolistic practices.
d.
information disclosure.
e.
health claims on food packages.
87. 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
88. Which of the following are the most frequently sentenced organizational crimes?
a.
False advertising and price discrimination
b.
Price discrimination and fraud
c.
Fraud and antitrust violations
d.
Price fixing and antitrust violations
e.
Fraud and price fixing
89. 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)
90. After several children became 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
91. 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.
92. Which of the following agencies regulates marketing activities the most?
a.
Environmental Protection Agency
b.
Food and Drug Administration
c.
Federal Trade Commission
d.
Better Business Bureau
e.
National Advertising Review Board
93. Which of the following industries is most commonly regulated by state regulatory agencies?
a.
Automobile manufacturers
b.
Cigarette producers
c.
Clothing manufacturers
d.
Television networks
e.
Utility companies
94. In its advertisements for Bud Light beer, Anheuser-Busch has decided to include a statement saying "Know when to
say when." This is an example of which one of the following types of regulatory forces affecting marketing efforts?
a.
Federal regulation
b.
State regulation
c.
City regulation
d.
Self-regulation
e.
Social regulation
95. 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
96. 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.
97. Jared Bledsoe hired Green Gardens, a local landscape firm to plant trees and shrubs in his front yard. The landscape is
beautiful when the company is done; however, in just a few days many of the plants begin to die. When Jared complained
to the manager of Green Gardens, the manager says that Jared must have done something to them that caused the plants to
die, such as overwatering 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.
98. 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.
99. 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. What action can the NARB take?
a.
Force Regent to stop running the advertisement.
b.
File a complaint with the Federal Trade Commission.
c.
Fine Regent for each time the ad appears.
d.
Sue Regent Hair Care Products in federal court.
e.
Sue Regent Hair Care Products in state court.
100. 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.
Many 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.
101. 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.
102. When a firm continues to violate what the Better Business Bureau believes to be good business practices, what is one
of the main actions the bureau will take?
a.
Lead a consumer boycott of the business.
b.
Sue the chief executive of the business.
c.
Impose fines on the owners/managers of the business.
d.
Support legal ordinances against the business.
e.
Warn consumers of the unfair practices.
103. What national self-regulatory organization screens ads?
a.
Federal Advertising Review Division
b.
National Advertising Review Board
c.
Federal Communications Commission
d.
Consumer Federation of America
e.
Better Business Bureau
104. Technology is
a.
the application of scientific knowledge to build products that customers desire.
b.
the application of knowledge and tools to solve problems and perform tasks more efficiently.
c.
applied sciences.
d.
one of the weakest marketing environment forces.
e.
the result of research performed primarily by universities.
105. 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.
106. While playing soccer, Bryan suddenly fell and broke his arm. Needing to get to the hospital, he was not only
interested in the nearest location, but also the shortest emergency room wait time. He remembered seeing a billboard for
The Cleveland Clinic promoting their time-text service where he could call the number GET-TXT-TIME and they would
text him the approximate waiting time at the closest three hospital locations. The Cleveland Clinic is providing enhanced
service to its patients by capitalizing on which environmental force?
a.
Economic
b.
Competitive
c.
Political
d.
Legal and regulatory
e.
Technological
107. The broad nature of technology as it moves through society is referred to as
a.
reach.
b.
dynamics.
c.
environment
d.
self-sustaining.
e.
impact.
108. 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
109. 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 how much technology one wants to incorporate into a company in the future.
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.
110. UPS is considering its distribution strategy for the next five years. As part of the strategy development, UPS 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.
111. 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.
112. People for the Ethical Treatment of Animals (PETA) have demonstrated 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
113. 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.
African-Americans, Hispanics, and Caucasians.
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.
114. 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 Coca-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
115. 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.
customer demands.
b.
the legal environment.
c.
demographics.
d.
cultural values.
e.
cultural diversity.
116. In addition to the proliferation of new organic brands many conventional marketers have introduced organic versions
of their products, including Orville Redenbacher, Heinz, and even Walmart. These firms are responding to changes in
a.
federal law.
b.
cultural values.
c.
demographics.
d.
consumerism.
e.
technological forces.
