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113) Regulations force companies to be responsible. However, most companies want to be
responsible. Impacts of government regulations include all of the following EXCEPT
________.
A) informing the public that products are safe
B) higher research costs
C) increased sales because they have been found to be safe
D) penalties to companies that fail to meet the regulations
E) longer times between new product ideas and their introduction
Refer to the scenario below to answer the following question(s).
Casey Brickly opened The Landing, a convenience store on the north shore of Witmer Lake, in
1962. With a sandwich counter on one side and a bait shop and grocery on the other, The
Landing was an immediate hit with weekend lake visitors and local residents alike. In the
summer, boaters parked at the piers and bought all their fishing needs, such as rods and reels,
bait, snacks, and soft drinks at The Landing. Even during the winter months, snowmobilers and
ice fishermen were lured to The Landing for snacks and hot coffee or hot chocolate.
As time passed, the business changed and grew tremendously. What was formerly a weekend
tourist area gradually became a full-fledged residential area. Many of the houses, which were
built as cottages in the 1950s and 1960s, were remodeled into residential homes. By the end of
the 1970s, the days of small motorboats and 10 mile-per-hour speed limits were gone; skiing
and fast speedboats became the rage. Through it all, The Landing continued to attract flocks of
patrons.
In the 1980s, however, Casey started to realize that the grocery area in The Landing could not
compete with larger local retailers. He eventually enlarged the sandwich counter, transforming
the bait shop and grocery into a restaurant with a full menu typical of any diner. "Getting rid of
the bait shop was hard to do," Casey admitted. "I still had a summer crowd that relied on us for
their fishing needs, but we couldn't survive a whole year on four months of profit."
In the early 2000s, the atmosphere of Witmer Lake and the neighboring lakes became upscale.
"I could see that people were spending more on their speed boats than what they had originally
paid for their cottages!" Casey exclaimed. Many of the cottages were inherited by children and
grandchildren of the original owners. Once again, the scene started to change as many of the
lake houses were used only as weekend lake homes. Unlike the previous generation, a vast
number of the current owners could afford to live closer to their jobs while maintaining lake
homes. "At this point, business wasn't growing," Casey said.
As local competition continued to increase, Casey converted the diner of The Landing into a
bar with a lounge area. "The change might have been too drastic," Casey said, "but it was the
only way we could maintain a strong, year-round business in spite of the population shifts and
competitive forces."
114) Which of the following is the macroenvironmental force that benefitted The Landing the
most?
A) the legal environment
B) the natural environment
C) the economic environment
D) the political environment
E) the technological environment
115) Environmental sustainability concerns have declined steadily over the past three decades.
116) The technological environment is predominantly static.
117) The introduction of new technologies is equally beneficial to all industries.
118) How can marketers benefit from developing solutions to environmental problems, such as
pollution and raw material shortages?
119) What are the major trends in today's natural environment? How do these trends affect
companies?
120) Why is the technological environment such a dramatic force in today's market?
121) The ________ prohibits monopolies and activities (price-fixing, predatory pricing) that
restrain trade or competition in interstate commerce.
A) Sherman Antitrust Act
B) Lanham Trademark Act
C) Fair Packaging and Labeling Act
D) CAN-SPAM Act
E) Magnuson-Moss Warranty Act
122) The ________ limits the number of commercials aired during children's programs.
A) Children's Online Privacy Protection Act
B) Child Protection Act
C) Fair Packaging and Labeling Act
D) Children's Television Act
E) Consumer Product Safety Act
123) The ________ environment consists of laws, government agencies, and pressure groups
that influence or limit various organizations and individuals in a given society.
A) socio-legal
B) cultural
C) political
D) technological
E) economic
124) Governments develop public policy to ________.
A) encourage deregulation
B) identify demographic patterns
C) identify cultural patterns
D) guide commerce
E) protect marketers
125) Laws in the United States and many other countries have many business-oriented laws
covering issues such as competition, environmental protection, pricing, packaging and labeling,
product safety, truth in advertising, consumer privacy, and ________.
A) land ownership
B) taxation
C) fair-trade practices
D) education
E) interdepartmental communication
126) Business legislation is enacted to protect ________.
A) consumers from unfair business practices
B) businesses from unfair attacks by consumers
C) consumers from competition by businesses
D) businesses from achieving unfairly high profits
E) society from profitable business activity
127) Laws are passed to define and prevent unfair competition primarily because ________.
A) business executives tend to favor pure monopolies
B) businesses sometimes try to neutralize threatening firms
C) governments in free market economies tend to nationalize ailing firms
D) private lobbying hurts the interests of national and state governments
E) most multinational entities in advanced economies are averse to invest in emerging markets
128) Funco Inc., a toy manufacturer, sold plastic racing cars that were manufactured with toxic
materials, which threatened the health of several children. Which purpose of government
regulation to protect consumers is involved?
A) misleading customers in their advertising
B) deceiving consumers through their packaging
C) making shoddy products
D) deceiving consumers through their pricing
E) invading consumer privacy
129) A company or association's ________ is designed to help guide responses to complex
social responsibility issues.
A) code of ethics
B) marketing plan
C) non-disclosure policy
D) privacy policy
E) non-compete clause
130) The boom in Internet marketing has created a new set of social and ethical issues. Critics
worry most about ________.
A) accessibility
B) puffery in advertising
C) online privacy issues
D) sustainability
E) issues pertaining to efficiency
131) Cause-related marketing has become a primary form of ________.
A) quality control
B) corporate fraud protection
C) corporate giving
D) legislative lobbying
E) price discrimination
132) A regional supermarket chain runs print, radio, and television advertisements announcing
that 1 percent of its sales is donated to local after-school programs for underprivileged youth.
This is an example of ________.
A) cause-related marketing
B) generational marketing
C) sustainable marketing
D) market segmentation
E) product differentiation
133) The ________ environment consists of institutions and other forces that affect a society's
basic values, perceptions, preferences, and behaviors.
A) social
B) cultural
C) political
D) physical
E) natural
134) Marketers should understand that people's core beliefs and values tend to be ________.
A) fixed
B) highly flexible
C) similar around the world
D) constantly and rapidly changing
E) easily influenced by secondary beliefs
135) Babita Singh, a 51-year-old schoolteacher from Los Angeles, believes that people should
choose a profession they like, which is an example of Babita's ________.
A) secondary belief
B) core belief
C) core value
D) work ethic
E) moral code
136) A pastor from Kansas believes that adultery is immoral. This refers to the pastor's
________.
A) secondary belief
B) acquired belief
C) social identity
D) core belief
E) cultural orientation
137) Mercury Inc., an American multinational corporation, is currently planning to enter the
promising consumer goods market in India. The firm will most likely discover that ________
beliefs and values are more open to change in India.
A) inherited
B) secondary
C) primary
D) core
E) traditional
138) A society's ________ are expressed in how people view themselves and others,
organizations, society, nature, and the universe.
A) social codes
B) cultural values
C) demographics
D) public policies
E) norms
139) Which of the following is most likely true with regard to people's views of organizations
in contemporary America?
A) In the American workplace, there has been an overall increase in organizational loyalty.
B) Most Americans are confident in their employers and are unlikely to switch jobs as
frequently as in the past.
C) The past two decades have seen a sharp decrease in confidence in and loyalty toward
America's business organizations.
D) Most U.S. workers view work as a source of personal satisfaction and organizational pride.
E) In the last decade, corporate scandals and layoffs had little impact on people's confidence in
U.S. firms.
140) People vary in their attitudes toward their society—while ________ defend it, malcontents
want to leave it.
A) reformers
B) patriots
C) activists
D) environmentalists
E) historical revisionists
141) Which of the following is a potential downside to using patriotic themes in marketing
programs?
A) Consumers rarely respond to patriotic marketing messages in a favorable manner.
B) A consumer's societal orientation has no visible impact on product consumption.
C) Patriotism could be viewed as an attempt to cash in on the nation's emotions.
D) Patriotic Americans may have less disposable income than reformers.
E) Mass marketing has limited appeal among patriotic Millennials.
142) Consumers in the "lifestyles of health and sustainability" market are more likely to seek
________.
A) alternative medicine
B) perfumes made from animal products
C) clothing made of fur
D) leather goods
E) foods high in saturated fat
143) The fact that people are dropping out of organized religion doesn't mean that they are
abandoning their faith. Some futurists have noted a renewed interest in ________, perhaps as a
part of a broader search for a new inner purpose.
A) interacting with nature
B) the fine arts
C) charitable giving
D) spirituality
E) materialism
144) Josie's FarmFresh creates sustainable, all-natural food products. These products are most
likely to become popular with which group?
A) SOHO
B) environmentally conscious
C) LGBT
D) business
E) Millennials'
145) The popularity of cause-related marketing as a form of corporate giving is rapidly
declining.
146) Secondary beliefs and values are less open to change than core beliefs and values.
147) Explain the controversy surrounding cause-related marketing.
148) Why is government regulation necessary to protect consumers from unfair business
practices?
149) How do socially responsible firms positively impact consumers and the environment?
150) What is the difference between core beliefs and secondary beliefs? Give an example of
each.
151) What are the different ways in which the major cultural values of a society are expressed?
152) Why is it important for marketers to understand cultural swings?
153) Discuss why business legislation is enacted. Provide examples.
154) What is cause-related marketing? Illustrate with examples.
155) How do people's views of nature affect marketers?
156) Rather than assuming that strategic options are bounded by the current environment, firms
adopting a(n) ________ to the marketing environment develop strategies to change the
environment.
A) environmental stance
B) proactive stance
C) reactive stance
D) relativist approach
E) no-compromise approach
157) Companies that take a proactive stance toward the marketing environment are most likely
to ________.
A) develop strategies to change the environment in their favor
B) passively accept the marketing environment
C) resist organizational change
D) discourage innovation
E) consider technological advances more disruptive than beneficial
158) Katrina Mendoza is a senior manager in a manufacturing firm that hires lobbyists to
influence legislation that affects the manufacturing industry. Katrina's firm takes a(n) ________
stance toward the marketing environment.
A) reactive
B) proactive
C) adversarial
D) passive
E) altruistic
159) Which of the following is most likely influenced by marketers?
A) population shifts
B) core cultural values
C) income distribution
D) ethnic diversity
E) media
160) Companies and their products often create ________.
A) new consumers
B) new technologies
C) new industries and their structures
D) new advertising campaigns
E) new manufacturing methods
161) When a company hires lobbyists to influence legislation affecting its industry, it is taking
a defensive stance toward the marketing environment.
162) In reacting to the marketing environment, what strategies do firms adopt in order to shift
from a reactive to a more proactive stance?
