Exam 3: The Marketing Environment

Credit increases future buying power.

Technology can help marketers become more productive.

What roles do the Better Business Bureau and the National Advertising Review Board play in self-regulation of business?

Contrast recession and depression.

Scenario 3.3 The Consumer Financial Protection Bureau settled a claim with the Bank of America for deceiving customers and unfairly billing them for services such as credit monitoring and identity theft protection. Bank of America agreed to provide refunds to 2.9 million people and pay $45 million in fines for their illegal credit card practices. Their deceptive practices dated to 2000 where they had billed customers for products such as "Privacy Guard" or "Privacy Assist" without first obtaining authorization for the products. The $45 million in fines includes $25 million as a civil penalty that will be paid to the Office of the Comptroller of the Currency and $20 million to the Consumer Financial Protection Bureau. The Bureau also claims that Bank of America deceived about 1.4 million customers into making about $268 million in payments by, among other things, improperly telling them the first 30 days of coverage were free or the benefits were greater than existed. Refer to Scenario 3.3. If the Consumer Financial Protection Bureau decides to contact the Federal Trade Commission (FTC) to investigate Bank of America and its practices regarding deceptive billing practices, and if the FTC believes that Bank of America has violated a law, the FTC would first

Which of the following statements is true?

The Guitar Center traces its roots to 1959 when Wayne Mitchell opened a home organ store in California. In 1964, the company began selling guitars and amplifiers and changed its name to the Guitar Center. The company added stores gradually and today is known as the largest musical instrument retailer in the world. The company continues to grow and maintains over 250 stores across the United States. According to their website, "Guitar Center is home to the world's largest selection of popular guitars, basses, amplifiers, keyboards, workstations, drums, percussion, microphones, PA systems, DJ equipment, stage lighting, recording software, studio gear and more." Assume that you are one of the brand managers for a line of products such as guitars or keyboards. Which of the following would be most important to you in assisting you to forecast sales and plan inventory levels for the chain of stores?

Wealth is an accumulation of past income, natural resources, and financial resources.

Which category of income are marketers most interested in?

People for the Ethical Treatment of Animals (PETA) has demonstrated against the sale of coats made of animal furs. PETA's efforts to change shoppers' attitudes represent a ____ force for fur retailers.

Scenario 3.2 Use the following to answer the question. Clayton Homes, a mobile home manufacturer since 1934, introduced its new i-House in 2007. The i-House is one of the first of its kind, designed as an updated, modern version of the modular home, offered as a base home plus add-ons known as "pods." The base home is a one-bedroom, one-bath, 734-square-foot version at a price of around $80,000. There is also a 1,000-square-foot version for around $100,000. All versions may add on the additional one-room pods, which are shipped to your location and constructed on site. The homes offer galvanized metal roofing, corrugated steel siding, VOC-free paints, and a "butterfly" roof that collects rainwater. The i-House uses 30% less energy than a similar square-foot home and offers "green" characteristics of solar panels, tankless water heaters, and low-flow faucets. In addition, it comes with bamboo flooring, a renewable resource. The modular, prefabricated design offers endless options for creating the customer's home, and its engineered building system cuts down on construction waste. Due to the "green effects" of the i-House, the state governments have given it a tax abatement for any sales taxes. Refer to Scenario 3.2. The i-House's reduction of energy use, renewable resources as materials, "pod" customization, reduction of construction waste, and tax abatement status is/are examples of reaction to which environmental forces?

If political officials have positive feelings toward particular firms or industries, they are less likely to create or enforce laws and regulations that are unfavorable for business organizations.

Jameson receives $50,000 in income. He paid $10,000 in taxes, $7,500 in rent and utilities, $5,000 on food, $2,000 in clothing, and $1,000 on a new couch. Based on these calculations, Jameson's discretionary income is

Procompetitive laws are those designed to

Scenario 3.3 The Consumer Financial Protection Bureau settled a claim with the Bank of America for deceiving customers and unfairly billing them for services such as credit monitoring and identity theft protection. Bank of America agreed to provide refunds to 2.9 million people and pay $45 million in fines for their illegal credit card practices. Their deceptive practices dated to 2000 where they had billed customers for products such as "Privacy Guard" or "Privacy Assist" without first obtaining authorization for the products. The $45 million in fines includes $25 million as a civil penalty that will be paid to the Office of the Comptroller of the Currency and $20 million to the Consumer Financial Protection Bureau. The Bureau also claims that Bank of America deceived about 1.4 million customers into making about $268 million in payments by, among other things, improperly telling them the first 30 days of coverage were free or the benefits were greater than existed. Refer to Scenario 3.3. Which environmental force is Bank of America responding to by agreeing to pay fines and refunds to consumers?

Most marketers operate in a competitive environment of either

Beautycounter is a firm that specializes in high-quality cosmetics that do not use any products which could be potentially harmful to humans. Founder Gregg Renfrew was inspired by the documentary An Inconvenient Truth to get rid of all products in her house that could contain harmful chemicals. However, when she tried to find makeup products that contained nontoxic ingredients, she could not find any that were of high quality. After she founded Beautycounter, the firm did extensive research to find high-quality, nontoxic materials that could be used in cosmetics. Beautycounter's target market is consumers who want high-quality makeup without the possibility of harm. This desire for ingredients that are healthy and nontoxic reflects changes in which type of issue in the sociocultural environment?

Which of the following industries is most commonly regulated by state regulatory agencies?

Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economic

In today's marketing environment, competitors can take on many forms. For example, Diet Coke can be seen as a competitor to Wrigley's Doublemint chewing gum. In this circumstance, these two products are described as ____ competitors.