Chapter 03 Test Bank
1. The political, economic, demographic, sociocultural, technological, and legal factors that affect a company’s ability to meet its
marketing goals are all part of
A. a company’s demographic characteristics.
B. a company’s internal forces.
2. A situation in which products that perform the same function compete against one another is referred to as
A. indirect competition.
B. functional competition.
compete against one another.
3. Compare the following product offerings. Which is the best example of direct competition?
4. Direct competition is also known as
5. Karlee needed to pick up some toothpaste from the store. She was surprised to find that the store was out of her usual brand,
Crest. Rather than go to another store, she decided to buy a tube of Colgate instead. In this example, Colgate represents
6. Indirect competition occurs when
7. Compare the following product offerings. Which is an example of indirect competition?
8. Monitoring developments outside of the firm’s control with the goal of detecting and responding to threats and opportunities is
called
9. A firm that is engaged in environmental scanning is monitoring developments outside of the firm’s control in order to detect
and respond to
10. The six major external factors that influence the marketing environment of a firm are economic, demographic, sociocultural,
technological, legal, and
A. environmental.
B. financial.
11. A sudden drop in the average consumer income would be an example of which external force affecting the marketing
environment?
12. A measure of the market value of all officially recognized final goods and services produced within a country in a given
period is referred to as
13. Overall GDP is the most common gauge of
A. the balance of trade between countries.
B. fluctuations in currency exchange rates.
14. Which of the following is the accurate cause of a recession?
15. Compare the following statements to determine which one accurately depicts how income is distributed across the U.S.
population.
16. Which of the following is the correct definition of inflation?
17. Daniel is looking to buy a hybrid vehicle because he is noticing that the price of gasoline continues to rise compared to years
past. The rise in the price of gasoline is most likely a result of
A. deflation.
B. a recession.
18. If the cost of groceries goes up by 10 percent this year, the amount of groceries you can buy for $50 decreases by that same
10 percent. This is an example of
19. A measure of how optimistic consumers are about the overall state of the economy and their own personal finances is
referred to as
20. Which of the following is not considered to be a demographic characteristic?
21. The description of human populations based on characteristics such as age, gender, ethnicity, and education level is
referred to as
22. Which of the following is the fastest growing demographic group in the United States?
23. The generation of children born between 1946 and 1964 is retiring at a rate of 10,000 per day. What is the name of this
demographic group?
A. Millennials
B. Generation X
24. Marketers are particularly interested in targeting baby boomers because they typically possess which two things that
marketing professionals seek?
25. The amount of spending money available to households after paying taxes is called
A. discretionary income.
B. at-will income.
26. A marketer that uses social media sites to engage potential customers is most likely targeting which demographic group?
27. Currently, females account for what percentage of all consumer purchases in the United States?
A. 5 percent
B. 12 percent
28. Compare the following statements and select the one that reflects your text’s assertion as to why educated consumers are
prime targets for marketing strategies.
29. Which ethnic group population in the United States is expected to almost double by the year 2050?
A. African Americans
B. Pacific Islanders
30. The external marketing factor that refers to the combination of social and cultural factors that affect individual development
is
31. According to your text, one of the biggest sociocultural changes in the United States over the past half century has been
A. the immigration of Hispanics into the country.
B. the increased use of the Internet for purchasing consumer products.
32. What external marketing factor is at work when political action committees raise money to help elect individuals to promote a
particular issue related to their industries?
33. Which regulation was passed to eliminate monopolies and guarantee competition?
34. The consumer protection agency for the United States is the
A. Bureau of Consumer Financial Protection.
B. Consumer Protection Commission.
35. What was the purpose of the Wheeler-Lea Act (1938)?
36. According to your text, of all the external factors that affect the marketing environment, which one represents the most
significant challenges, as well as the most significant opportunities, for marketing professionals?
37. While shopping for back–to-school clothes, Josie uses apps on her smartphone to comparison shop, and to obtain coupons
and fashion advice. What external factor affecting the marketing environment does this represent?
38. As described in your text, how did marketers at Disney utilize technology to provide a more hassle-free experience at their
theme parks?
A. by providing users with a park pass that could be used for their entire stay
B. by installing monitor screens showing wait times for various rides/attractions
39. Compare the following statements to determine which one is accurate regarding marketing on a global scale versus
marketing domestically?
03–14
Topic: International Marketing Environment
40. What term refers to how the value of one country’s currency changes in relation to the value of other currencies?
41. The price of one country’s currency in terms of another country’s currency is referred to as
42. Analyze the following statements to determine what would happen if the value of the euro appreciates relative to the dollar.
43. What country has been criticized for undervaluing its currency?
44. Currency fluctuations can provide marketing opportunities
45. When marketers for Walt Disney World in Florida attract French and British families by advertising the resort’s new
affordability for Europeans, what global marketing environment factor are they employing?
46. According to your text, what provides the most reliable picture of a country‘s purchasing power?
A. its level of gross domestic product
B. a stable rate of currency fluctuation
47. A nation’s purchasing capability tends to increase when the proportion of
48. When it comes to income distribution, what income class is the marketing professional particularly attracted to?
A. the top wage earners
B. lower-income households
49. International trade agreements, monetary unions, and organizations can impact the environment in which a firm operates in
all of the following ways except
50. NAFTA is a trade agreement between
51. The largest share of U.S. exports is to
52. Taxes on imports and exports between countries are called
A. import/export fees.
B. trade restrictions.
53. What was one of the key goals of the North American Free Trade Agreement?
54. CAFTA is a trade agreement for countries in
55. What country joined the Central America Free Trade Agreement in 2004?
56. Which country belonging to the DR-CAFTA trade agreement has the largest economy?
57. Which of the following generated an estimated 25 percent share of the global gross domestic product, making it the largest
economy in the world in 2014?
58. Which of the following acronyms stands for the international organization that regulates trade among participating countries
and helps importers and exporters conduct their business?
59. Which of the following organizations was formed in 1995, is headquartered in Geneva, Switzerland, and with its 162
members represents more than 97 percent of the world’s population?
60. Consider the following activities to determine which one is not a function of the International Monetary Fund.