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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.
14. Three primary methods of collecting information for environmental scanning are
a.
marketing research, company records, and advance orders.
b.
secondary sources, company records, and observation.
c.
executive knowledge, media, and marketing research.
d.
observation, secondary sources, and marketing research.
e.
company database, executive knowledge, and research.
15. The Lazy-Boy Furniture Company collects information about a wide variety of competitive, economic, political, legal
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
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.
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.
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.
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
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.
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
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
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
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
26. When marketers define their target market, they simultaneously establish a set of
a.
technologies.
b.
monopolies.
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
28. ____ competitors provide very different products that satisfy the same basic customer need.
a.
Brand
b.
Generic
c.
Total budget
d.
Product
e.
Marketing
29. ____ competitors are those that compete in the same product class, but their products have different features, benefits,
and prices.
a.
Total budget
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
31. Marketers primarily focus their environmental analysis on ____ competitors.
a.
brand
b.
product
c.
total budget
d.
generic
e.
monopolistic
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.
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
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
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
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.
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
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.
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
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.
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
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.
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
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
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.
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.
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.
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
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.
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.
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
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
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
55. During which stage of the business cycle is unemployment low and total income relatively high?
a.
Repression
b.
Prosperity
c.
Recovery
d.
Recession
e.
Depression
56. Total buying power declines during periods of economic
a.
recovery.
b.
prosperity.
c.
recession.
d.
uncertainty.
e.
expansion.
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.
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.
