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117. Consumerism is a
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.
diverse group of individuals and organizations attempting to protect the rights of consumers.
e.
social movement that provides consumers with means for expressing satisfaction and expressing their
gratitude to producers.
118. 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 part of what we see today as the
a.
cultural diversity movement.
b.
civil rights movement.
c.
urban unrest cycle.
d.
procompetitive movement.
e.
consumerism movement.
119. Scenario 3.1
Use the following to answer the questions.
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.
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
b.
Wheeler-Lee
c.
Robinson-Patman
d.
Celler-Kefauver
e.
Consumer Goods Pricing
120. Scenario 3.1
Use the following to answer the questions.
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.
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
121. Scenario 3.1
Use the following to answer the questions.
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.
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 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.
Better Business Bureau
e.
Office of Consumer Affairs
122. Scenario 3.1
Use the following to answer the questions.
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.
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. 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.
123. Scenario 3.2
Use the following to answer the questions.
Clayton Homes, a mobile home manufacturer since 1934, introduced its new i-House in 2007. The i-House 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 i-House 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 i-House, the state governments have given it a tax abatement for any sales taxes.
Refer to Scenario 3.2.
The new Clayton Homes i-House 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.
124. Scenario 3.2
Use the following to answer the questions.
Clayton Homes, a mobile home manufacturer since 1934, introduced its new i-House in 2007. The i-House 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 i-House 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 i-House, the state governments have given it a tax abatement for any sales taxes.
Refer to Scenario 3.2. In what type of competitive structure is Clayton Homes most likely operating?
a.
Monopoly
b.
Oligopoly
c.
Monopolistic competition
d.
Pure competition
e.
Monopsony
125. Scenario 3.2
Use the following to answer the questions.
Clayton Homes, a mobile home manufacturer since 1934, introduced its new i-House in 2007. The i-House 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 i-House 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 i-House, the state governments have given it a tax abatement for any sales taxes.
Refer to Scenario 3.2. The i-House'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 which environmental forces?
a.
political and sociocultural.
b.
political, sociocultural, economic.
c.
sociocultural and economic.
d.
political and economic.
e.
political, economic, sociocultural, and technological.
126. Scenario 3.2
Use the following to answer the questions.
Clayton Homes, a mobile home manufacturer since 1934, introduced its new i-House in 2007. The i-House 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 i-House 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 i-House, the state governments have given it a tax abatement for any sales taxes.
Refer to Scenario 3.2. Clayton Homes is revising its marketing strategy for the i-House due to the recent recession. Which
of the following is the best action for promoting the i-House in the near future?
a.
Emphasize the value of the i-House 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.
127. Scenario 3.2
Use the following to answer the questions.
Clayton Homes, a mobile home manufacturer since 1934, introduced its new i-House in 2007. The i-House 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 i-House 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 i-House, the state governments have given it a tax abatement for any sales taxes.
Refer to Scenario 3.2. The income a consumer would use to purchase an i-House is considered ____ income.
a.
discretionary
b.
buying power
c.
disposable
d.
consumer spending
e.
comprehensive spending
128. The marketing environment consists of external forces that directly or indirectly influence an organization's
acquisition of inputs and generation of outputs.
a.
True
b.
False
129. Environmental analysis is the process of collecting information about forces in the marketing environment.
a.
True
b.
False
130. Environmental analysis helps managers identify potential threats and opportunities linked to environmental changes.
a.
True
b.
False
131. Brand competitors market products with similar features, benefits, and prices to the same customers.
a.
True
b.
False
132. Product competitors provide very different products that solve the same problem or satisfy the same basic customer
need.
a.
True
b.
False
133. The number of firms that control the supply of a product may affect the strength of competition.
a.
True
b.
False
134. A monopoly exists when a firm with many potential competitors attempts to develop a marketing strategy to
differentiate its products.
a.
True
b.
False
135. An oligopoly exists when a firm offers a product that has no close substitutes, making the firm the sole source of
supply.
a.
True
b.
False
136. Pure competition is a common competitive environment.
a.
True
b.
False
137. Monitoring the competitive environment guides marketers in developing competitive advantages.
a.
True
b.
False
138. Changes in general economic conditions affect (and are affected by) supply and demand, buying power, willingness
to spend, consumer expenditure levels, and intensity of competitive behavior.
a.
True
b.
False
139. A recession is characterized by extremely high unemployment, very low wages, minimal total disposable income,
and lack of consumer confidence in the economy.
a.
True
b.
False
140. The strength of one's buying power depends partially on the state of the economy.
a.
True
b.
False
141. 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
142. Disposable income is used to pay taxes, spend, and save.
a.
True
b.
False
143. The total amount of disposable income is affected by the amount of taxes consumers pay.
a.
True
b.
False
144. Decreases in taxes lead to decreases in disposable income.
a.
True
b.
False
145. Credit increases current buying power at the expense of future buying power.
a.
True
b.
False
146. Credit increases future buying power.
a.
True
b.
False
147. An individual can have a high income and very little wealth.
a.
True
b.
False
148. Wealth is an accumulation of past income, natural resources and financial resources.
a.
True
b.
False
149. If a person has buying power, he or she is influenced only by a product's absolute price.
a.
True
b.
False
150. Wealth enables consumers to gain buying power.
a.
True
b.
False
151. For a given level of buying power, the larger the family, the greater the willingness to spend.
a.
True
b.
False
152. A factor that affects willingness to spend is general economic conditions.
a.
True
b.
False
153. Political and legal forces in the marketing environment are highly interrelated.
a.
True
b.
False
154. Political forces are beyond the control of marketers, and so they can only react to them.
a.
True
b.
False
155. 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
156. A recent U.S. Supreme Court decision has nullified federal laws that limited corporate contributions to political
campaign funds for specific canidates
a.
True
b.
False
157. Many laws that directly influence marketing activities were enacted either to preserve a competitive atmosphere or to
protect consumers.
a.
True
b.
False
158. The Sherman Antitrust Act, along with several other laws, is a procompetitive law because it was created to preserve
competition.
a.
True
b.
False
159. Fraud and antitrust violations are the most frequently sentenced organizational crimes.
a.
True
b.
False
160. All marketers interpret laws and regulations conservatively and strictly to avoid violating a vague law.
a.
True
b.
False
