Marketing Chapter 3 When Inflation Occurs The General Level Prices For Products Increases Thus Reducing

105. The ______ ______ ______ works to foster international monetary cooperation, secure financial stability, facilitate

international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

106. The IMF was particularly important when it was first created because it helped stabilize the world’s economic system

following ______ ______ ______.

107. A belief by residents of a country that it is inappropriate or immoral to purchase foreign-made goods and services is known

as consumer _______.

108. When a company assumes that foreign consumers want exactly the same products that are sold in the United States, it has

failed to analyze the importance of understanding ______ ______.

109. Nonprofit organizations rely primarily on three sources of funding: special events, individual donations, and _______.

110. During the recession that began in December of 2007, Americans reduced their overall charitable giving by over _______

percent.

111. Laws and regulations that have an impact on how nonprofit firms operate are part of the _______ factors that impact the

marketing efforts for these firms.

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Difficulty: 2 Medium

Learning Objective: 03-05 Describe the emerging factors that influence the nonprofit marketing environment.

Topic: Nonprofit Marketing Environment

112. A nonprofit firm that uses social media to organize activists, or conduct charity campaigns, is aware of the _______ factor

that can impact marketing campaigns.

113. Direct competition is also known as category competition.

114. Direct competition occurs when a product provides alternate solutions to the same market.

115. A long-time leader in the beverage industry, Coca-Cola saw soft-drink sales decline when competitors began selling juices,

teas, and energy drinks. This is an example of indirect competition.

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Topic: Competitive Environment

116. Environmental scanning involves monitoring developments within a firm’s control to evaluate the firm’s strengths and

weaknesses.

117. The six major external factors that can influence the marketing environment of a firm are: economic factors, domestic

factors, international factors, political factors, legal factors, and sociocultural factors.

118. Economic factors influence almost every marketing decision a firm makes.

119. A recession occurs when inflation rises for two or more consecutive quarters.

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Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 03-02 Summarize the major external factors that influence the marketing environment.

Topic: Economic Environment

120. In periods of inflation, the purchasing power of money declines.

121. A recession and contraction of the economy tends to reduce consumer confidence.

122. Rapidly retiring baby boomers make up only a quarter of the U.S. population, but account for 50 percent of all domestic

consumer spending.

123. Compared with other generational groups, baby boomers have the greatest familiarity with and most use for digital

communication, social media, and other forms of technology.

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Topic: Demographic Environment

124. Projections indicate that by 2050 the Asian population in the United States will almost double to more than 127 million.

125. One of the biggest sociocultural changes in the United States over the past half century has been the shift from a nation of

primarily one-income families to one in which two-income families and single-parent households predominate.

126. The Federal Commerce Commission (FCC) serves as the consumer protection agency for the United States.

127. Currency fluctuations can provide marketing opportunities whether a currency is appreciating or depreciating.

128. A country’s currency exchange rate provides the most reliable picture of its purchasing power.

129. NAFTA is an international trade agreement between the United States, Canada, and Mexico.

130. The Democratic Republic of Congo in Africa joined CAFTA in 2004, renaming the trade agreement DR-CAFTA.

131. The World Trade Organization was officially formed in 1995 under the Marrakech Agreement.

132. Created in 1945, the WTO is governed by and accountable to the 188 countries that make up its near-global membership.

133. The belief by residents of a country that it is inappropriate or immoral to purchase foreign-made goods and services is

referred to as consumer ethnocentrism.

134. Analyzing cultural fit and overcoming consumer ethnocentrism are essential aspects of environmental scanning on a global

scale that help firms create value for international consumers.

135. Nonprofit organizations primarily rely on three sources of funding: individual donations, corporate donations, and federal

funds.

136. Donations made to nonprofit organizations are not usually affected by economic recessions.

137. The use of social media is not applicable to nonprofit organizations because they tend to get the most success from

traditional marketing methods.

138. Discuss the difference between direct and indirect competition. Provide an example of a product that you buy regularly and

some of its direct and indirect competitors.

139. What are the economic factors that influence the marketing environment? If you own a used car dealership, which

economic factors do you feel are most important to understand and monitor to make your business successful?

140. What additional factors that affect the marketing environment do you need to consider when selling your product or service

globally?

141. You are the manager of a grocery store (supermarket) that sells a varied menu of prepared foods like pizza, wings,

sandwiches, salads, sushi, hot meals, Chinese food, and other foods besides your other grocery items. Identify some of your

indirect competitors.

142. Sally would like to start a nonprofit agency that assists lower income children in Central America by providing funds for their

education and living costs. Help Sally analyze what factors she needs to consider to market her nonprofit to raise funds in the

United States.

143. Tim is 19 years old and is thinking of starting a business to target his generation, the millennials. What are some of the

demographic factors that he needs to analyze to help him determine how to market his business?

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Chapter 03 Test Bank Summary