1. Given a new brand of barbecue sauce for which to develop a marketing strategy, describe how you would conduct
environmental scanning and analysis.
2. Explain the differences between the competitive structures of a monopoly and an oligopoly.
3. Describe what is meant by a consumer’s buying power. How might this affect a marketing strategy?
4. Contrast recession and depression.
5. Explain how a period of recession might affect the marketing of a product.
6. Explain the difference between procompetitive legislation and consumer protection laws.
7. Describe several ways in which federal agencies influence marketing activities.
8. What roles do the Better Business Bureau and the National Advertising Review Board play in self-regulation of
business?
9. Why must marketers be aware of new developments in technology?
10. What are the major forces that are referred to as sociocultural forces and how do they present marketers with both
challenges and opportunities?
11. In what ways is the United States becoming an increasingly diverse nation in terms of culture?
12. To monitor changes in the marketing environment effectively, marketers must engage in
a.
environmental scanning and analysis.
b.
economic scanning
c.
self-regulatory analysis
d.
marketing research analysis
e.
information collecting
13. Collecting information from secondary sources such as business, government, trade, and general-interest publications
plays an important role in
a.
environmental analysis.
b.
competitive forces.
c.
environmental scanning.
d.
procompetitive legislation.
e.
self-regulatory forces.
MARK.PRID.16.03.01 – LO: 03–01
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Examining And Responding To The Marketing Environment
Bloom’s: Knowledge
14. Three primary methods of collecting information for environmental scanning are
a.
b.
c.
d.
e.
MARK.PRID.16.03.01 – LO: 03–01
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Examining And Responding To The Marketing Environment
Bloom’s: Knowledge
15. The Lazy-Boy Furniture Company collects information about a wide variety of competitive, economic, political, legal
MARK.PRID.16.03.01 – LO: 03–01
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Marketing Plan
A-Head: Examining And Responding To The Marketing Environment
Bloom’s: Knowledge
and regulatory, technological, and sociocultural forces that affect its marketing activities. This process is called
a.
environmental scanning.
b.
survey of environment.
c.
marketing.
d.
environmental analysis.
e.
marketing information processing.
16. In 2009 the Coca-Cola Company introduced the “Freestyler,” a new free-standing soda dispensers where consumers
can chose from over 120 different types of soda and customize their drink. Freestylers would take the place of typical
dispensers where there are only a few different types of soda brands available. In order to develop the new dispenser,
Coca-Cola collected information on the soda-drinking habits of individuals in several different age groups, as well as
information about new technologies for dispensing liquids from vending machines and the sales of its “fountain” syrup for
national restaurant chains to use in their soda machines. Coca-Cola’s collection of this information is an example of
_____ while the assessment of its impact on the potential for the new “Freestyler” is an example of _________
a.
environmental scanning; environmental analysis
b.
an environmental force; environmental scanning
c.
environmental analysis; environmental strategy
d.
strategizing; environmental scanning
e.
strategic management; environmental scanning
a
Moderate
MARK.PRID.16.03.01 – LO: 03–01
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: International Perspectives
A-Head: Examining And Responding To The Marketing Environment
Bloom’s: Application
17. SiriusXM Radio is concerned about how the increasing use of smart phones will affect the future sales of its satellite
radio service. The company decides to gather information about the changing trends in music access and delivery to
prepare for this trend. Sirius XM’s process is called
a.
environmental scanning.
b.
target marketing.
c.
surveying.
d.
environmental analysis.
e.
dynamic responsiveness.
a
Moderate
Moderate
MARK.PRID.16.03.01 – LO: 03–01
United States – BUSPROG: Analytic
United States – AK – DISC: International Perspectives
A-Head: Examining And Responding To The Marketing Environment
Bloom’s: Application
18. According to the textbook, a manager’s duties in an environmental analysis include
a.
checking information for accuracy, resolving inconsistencies, and assigning significance to the findings.
b.
observation and assessment.
c.
conducting research, assessment, and reporting.
d.
observation, market research, and fact finding.
e.
checking the company database, conducting research, and reporting.
a
Easy
MARK.PRID.16.03.01 – LO: 03–01
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Examining And Responding To The Marketing Environment
Bloom’s: Knowledge
19. When PepsiCo takes the information collected through research and attempts to assess and interpret what it means for
its soft-drink marketing efforts, PepsiCo is engaged in environmental
a.
scanning.
b.
forces.
c.
management.
d.
manipulation.
e.
analysis.
e
Moderate
MARK.PRID.16.03.01 – LO: 03–01
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Examining And Responding To The Marketing Environment
Bloom’s: Application
20. Nabisco learned that health-conscious consumers preferred lower fat snack and lower-carbohydrate foods. At the same
time, the firm saw sales of such products slumping and was careful not to launch any new varieties of these products for a
while. Which of the following best describes Nabisco’s action?
a.
Environmental scanning
b.
Environmental marketing
c.
Demarketing
d.
Segmentation
e.
Environmental analysis
e
MARK.PRID.16.03.01 – LO: 03–01
United States – BUSPROG: Analytic
United States – AK – DISC: International Perspectives
A-Head: Examining And Responding To The Marketing Environment
Bloom’s: Application
21. After Home Depot gathers information related to its marketing environment, it attempts to define current
environmental changes and predict future changes. This determines possible opportunities and threats facing the company.
It illustrates the process that is called
a.
environmental scanning.
b.
survey of environment.
c.
marketing.
d.
environmental analysis.
e.
marketing information processing.
Moderate
MARK.PRID.16.03.01 – LO: 03–01
United States – BUSPROG: Analytic
United States – AK – DISC: International Perspectives
A-Head: Examining And Responding To The Marketing Environment
Bloom’s: Application
22. Marketers who attempt to influence and change the various environmental forces have a(n) ____ response to these
forces.
a.
reactive
b.
inactive
c.
variable
d.
positive
e.
proactive
e
Easy
MARK.PRID.16.03.01 – LO: 03–01
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Examining And Responding To The Marketing Environment
Bloom’s: Knowledge
23. Toyota has developed aluminum car bodies that are 100 percent recyclable and light enough to help conserve fuel.
What kind of response is this to environmental forces?
a.
Proactive
b.
Competitive
c.
Reactive
Moderate
MARK.PRID.16.03.01 – LO: 03–01
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Examining And Responding To The Marketing Environment
Bloom’s: Application
d.
Inactive
e.
Controllable
24. While Silk Soymilk engages in environmental scanning and analysis, the company is more likely to change its
products and marketing strategies to adapt to environmental forces rather than trying to influence these forces. Silk
Soymilk has a(n) ____ approach to marketing environmental forces.
a.
inactive
b.
reactive
c.
proactive
d.
negative
e.
variable
Moderate
25. Marketers who view political forces as being beyond their control are taking a(n) ____ response toward these forces.
a.
reactive
b.
aggressive
c.
proactive
d.
competitive
e.
liberal
a
Easy
26. When marketers define their target market, they simultaneously establish a set of
a.
technologies.
b.
monopolies.
a
Moderate
c.
competitors.
d.
government regulations.
e.
sociocultural forces.
27. Companies that market products with similar features, benefits, and prices to the same customer group are known as
____ competitors.
a.
generic
b.
product
c.
brand
d.
total budget
e.
monopolistic
c
Easy
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Competitive Forces
Bloom’s: Knowledge
28. ____ competitors provide very different products that satisfy the same basic customer need.
a.
Brand
b.
Generic
c.
Total budget
d.
Product
e.
Marketing
Easy
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Competitive Forces
Bloom’s: Knowledge
29. ____ competitors are those that compete in the same product class, but their products have different features, benefits,
and prices.
a.
Total budget
c
Easy
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Competitive Forces
Bloom’s: Knowledge
b.
Generic
c.
Brand
d.
Product
e.
Price
30. Which of the following is not at the generic competitor level for Ford’s Expedition sport utility vehicle?
a.
Ford’s Escape SUV
b.
Enterprise car rental
c.
Harley Davidson motorcycle
d.
Schwinn mountain bike
e.
Taxi cab ride
a
Moderate
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Competitive Forces
Bloom’s: Application
31. Marketers primarily focus their environmental analysis on ____ competitors.
a.
brand
b.
product
c.
total budget
d.
generic
e.
monopolistic
a
Moderate
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Competitive Forces
Bloom’s: Knowledge
32. In today’s marketing environment, competitors can take on many forms. For example, Diet Coke can be seen as a
competitor to Wrigley’s Double Mint chewing gum. In this circumstance, these two products are described as ____
competitors.
Easy
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Competitive Forces
Bloom’s: Knowledge
a.
generic
b.
product
c.
total budget
d.
monopolistic
e.
pure
33. Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Year’s Eve party crowd instead of
Korbel champagne. As a result of this action, Korbel and Hawaiian Punch can be viewed as ____ competitors.
a.
generic
b.
product
c.
total budget
d.
oligopolistic
e.
pure
a
Moderate
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Competitive Forces
Bloom’s: Application
34. Companies that compete for the same limited financial resources of the same customers are known as ____
competitors.
a.
oligopolic
b.
total budget
c.
generic
d.
product
e.
brand
Easy
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
A-Head: Competitive Forces
Bloom’s: Knowledge
c
Moderate
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Competitive Forces
Bloom’s: Application
35. ____ competitors are the most significant to marketers because buyers see the different products of these firms as
direct substitutes for each other.
a.
Oligopolic
b.
Total budget
c.
Generic
d.
Product
e.
Brand
36. Companies delivering mixed concrete know that it cannot be shipped farther than twenty-five miles because the
concrete might harden in the truck. Citrus County Concrete Company is the only supplier of mixed concrete to customers
within a thirty-mile radius. Citrus County Concrete is an example of which one of the following competitive structures?
a.
Monopoly
b.
Oligopoly
c.
Monopolistic competition
d.
Pure competition
e.
Monopsony
a
Moderate
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Competitive Forces
Bloom’s: Application
37. The four major competitive structures are
a.
monopolies, oligopolies, oligopolistic monopolies, and pure competition.
b.
pure competition, heavy competition, moderate competition, and light competition.
c.
brand, product, total budget, and generic.
d.
oligopolies, monopolies, monopolistic competition, and pure competition.
e.
monopolies, limited competition, oligopolistic competition, and pure competition.
Moderate
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Competitive Forces
e
Easy
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Competitive Forces
Bloom’s: Knowledge
38. What type of competitive structure exists when a firm produces a product that has no close substitutes?
a.
Monopoly
b.
Oligopoly
c.
Monopolistic competition
d.
Pure competition
e.
Mixed competition
a
Easy
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Competitive Forces
Bloom’s: Knowledge
39. The type of competitive structure that exists in the case where there are almost no substitutes for a product is a(n)
a.
monopolistic competition.
b.
oligopoly.
c.
pure competition.
d.
monopoly.
e.
noncompetition.
Easy
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Competitive Forces
Bloom’s: Knowledge
40. The American automobile industry was historically dominated by “The Big Three,” referring to General Motors, Ford,
and Chrysler. However, as many more foreign competitors began influencing this market, the American companies had to
modify and differentiate their products. The automobile industry moved from a(n) ____ structure to a(n) ____ structure.
a.
monopolistic; oligopolistic
b.
oligopolistic; pure competition
c.
oligopolistic; monopolistic competition
d.
monopolistic competition; pure competition
e.
monopolistic; monopolistic competition
c
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
Bloom’s: Knowledge
41. The Decca Electric Corporation produces light bulbs that are used in refrigerator manufacturing. Currently, only three
other companies produce bulbs used in the production of refrigerators, with Decca as the leader in market share. In this
case, Decca Electric Corporation would be considered
a.
an oligopoly.
b.
a monopoly.
c.
involved in monopolistic competition.
d.
involved in perfect competition.
e.
involved in a perfect oligopoly.
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Competitive Forces
Bloom’s: Application
42. Which of the following firms would be most likely to have a monopoly for its competitive environment?
a.
TimeWarner Cable TV
b.
Mitchell Trucking
c.
American Airlines
d.
Rogers Plumbing
e.
Chemlawn Lawn Care
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Competitive Forces
Bloom’s: Application
43. Most marketers operate in a competitive environment of either
a.
oligopoly or monopoly.
b.
oligopoly or monopolistic competition.
c.
oligopoly or pure competition.
d.
monopoly or pure competition.
e.
pure competition or monopolistic competition.
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
A-Head: Competitive Forces
Bloom’s: Application
44. When a firm has many potential competitors and tries to develop a marketing strategy to differentiate its products
from the competitors’ products, a(n) ____ structure exists in the competitive environment.
a.
oligopoly
b.
monopoly
c.
pure competition
d.
oligopolistic competition
e.
monopolistic competition
e
Easy
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Competitive Forces
Bloom’s: Knowledge
45. What type of competitive structure exists when just a few sellers control a large portion of the supply of a product?
a.
Monopoly
b.
Oligopoly
c.
Monopolistic competition
d.
Mixed competition
e.
Pure competition
Easy
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Competitive Forces
Bloom’s: Knowledge
46. Changes Salon is part of the hair and personal care service industry. In what type of competitive environment is
Changes Salon most likely operating?
a.
pure competition.
b.
a monopoly.
c.
monopolistic competition.
d.
oligopolistic competition.
e.
an oligopoly.
Easy
MARK.PRID.16.03.02 – LO: 03–02
United States – AK – DISC: Marketing Plan
A-Head: Competitive Forces
Bloom’s: Knowledge
47. The tobacco industry in the United States is dominated by three large companies. When any one of these companies
changes its price on tobacco products, the other two companies quickly adjust their prices to match it. From these
characteristics, the tobacco industry could best be described as
a.
price sensitive.
b.
opportunistic.
c.
monopolistic competition.
d.
an oligopoly.
e.
a monopoly.
Moderate
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Pricing
A-Head: Competitive Forces
Bloom’s: Application
48. J. Pitner Clothing is a medium-size specialty men’s and women’s clothing store in a market with many other specialty
stores, department stores, and discounters. It has established a reputation for offering high-quality, fashionable
merchandise with quality service. J. Pitner’s competitive environment would best be characterized as
a.
a monopoly.
b.
an oligopoly.
c.
monopolistic competition.
d.
pure competition.
e.
faceted competition.
c
Moderate
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Competitive Forces
Bloom’s: Application
49. In general, which of the following competitive structures is an organization least likely to operate?
a.
Monopoly
b.
Monopolistic competition
c.
Oligopoly
d.
Elastic competition
e.
Pure competition
e
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Competitive Forces
Bloom’s: Knowledge
50. The two least common competitive structures are
a.
monopolies and oligopolies.
b.
pure competition and monopolies.
c.
monopolistic competition and monopolies.
d.
pure competition and no competition.
e.
oligopolies and pure competition.
Easy
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Competitive Forces
Bloom’s: Comprehension
51. The best approach for a company to take when monitoring its competitors is
a.
watching for increases and decreases in competitors’ prices and match them.
b.
analyzing all information that is readily available about competitors.
c.
sending employees to competitors’ offices and factories to observe their actions.
d.
developing a system for gathering ongoing information about competitors.
e.
reading important business publications such as The Wall Street Journal.
Easy
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Competitive Forces
Bloom’s: Comprehension
52. Volkswagen is planning its promotional strategy for its Passat model. When compared to others in its class, the Passat
has average gas mileage, better comfort ratings, more leg room, better interiors, average dependability, and is made in its
plants in Tennessee. Which of the following attributes of a Volkswagen Passat would be most appropriate to emphasize in
television commercials during an economic recession?
a.
Gas mileage
b.
Dependability
c.
Made in the U.S.A.
d.
Leg room
Moderate
MARK.PRID.16.03.02 – LO: 03–02
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Competitive Forces
Bloom’s: Comprehension
e.
Comfort
53. In a period of economic recovery, the best marketing strategy for FedEx would be characterized by which of the
following features?
a.
Flexibility
b.
Aggressiveness
c.
Austerity
d.
Retrenchment
e.
Boldness
a
Moderate
54. Assuming that inflation is low, high buying power characterizes the ____ stage of the business cycle.
a.
prosperity
b.
depression
c.
recovery
d.
succession
e.
recession
a
Easy
55. During which stage of the business cycle is unemployment low and total income relatively high?
a.
Repression
b.
Prosperity
c.
Recovery
d.
Recession
c
Moderate
e.
Depression
56. Total buying power declines during periods of economic
a.
recovery.
b.
prosperity.
c.
recession.
d.
uncertainty.
e.
expansion.
c
Easy
MARK.PRID.16.03.03 – LO: 03–03
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Economic Forces
Bloom’s: Knowledge
57. Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods
of economic
a.
recovery.
b.
prosperity.
c.
recession.
d.
uncertainty.
e.
expansion.
c
Easy
MARK.PRID.16.03.03 – LO: 03–03
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Economic Forces
Bloom’s: Comprehension
58. Publix Supermarket is revising its marketing plan for the upcoming quarter. Publix typically focuses on its wide
variety of products and its high quality customer service, having very few weekly “sales.” However, during the upcoming
quarter, Publix plans to focus on price and value, and promote weekly “values” instead. Publix is most likely in a(n)
a.
inflation period.
b.
prosperity period.
Easy
MARK.PRID.16.03.03 – LO: 03–03
United States – BUSPROG: Analytic
United States – AK – DISC: Marketing Plan
A-Head: Economic Forces
Bloom’s: Knowledge