Question 1

For 18 months, Warner-Lambert Co., an American pharmaceutical company, was required to include the following statement in all television advertisements for Listerine: "Listerine will not help prevent colds or sore throats or lessen their severity." The Federal Trade Commission (FTC) imposed this requirement because previous advertising had caused consumers to believe Listerine was effective against colds. This is an example of the FTC action known as

Accepted Answer

A)  corrective advertising. 
B)  deceptive advertising. 
C)  unethical advertising. 
D)  cease and desist advertising. 
E)  self-regulation.

Question 2

Small businesses employ about ________ of all private-sector employees.

Accepted Answer

A)  one-quarter 
B)  one-third 
C)  one-half 
D)  three-quarters 
E)  ninety percent

Question 3

How would the following environmental trends influence the success of a manufacturer of high-definition televisions (HDTVs): (1) growing number of older Americans; (2) population shifts to remote suburbs and small towns; (3) increase in per capita income and standard of living; and (4) increased use of various types of communication technology?

Accepted Answer

The answer of How would the following environmental trends influence...

Question 4

This year the Shafer family has dined at nice restaurants almost four times a week. Between raises received by Mr. and Mrs. Shafer, their family income rose 11 percent, while the cost of living rose by 4 percent and property taxes went up 5 percent in their community. As a result, the family eats outside the home more often now, compared to dining out only a few times a month a few years ago. This reflects

Accepted Answer

A)  an increase in the number of fine restaurants during times of economic upswing. 
B)  a reaction to an increase in discretionary income. 
C)  a significant drop in disposable income since there was a negative gain in income. 
D)  a rise in deflation. 
E)  a shift from investing to spending

Question 5

Consumerism refers to

Accepted Answer

A)  a movement of conspicuous consumption that began when World War II ended. 
B)  conducting business in a way that protects the natural environment while making economic progress. 
C)  a collaborative effort between buyers and sellers to create an exchange where each benefit. 
D)  the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth. 
E)  the grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions.

Question 6

The grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions is referred to as

Accepted Answer

A)  Naderism. 
B)  consumerism. 
C)  green marketing. 
D)  anti-corporate activism. 
E)  libertarianism.

Question 7

A paint manufacturer will sell a retail paint outlet its paint only if the retailer also buys the manufacturer's line of brushes and accessories. This is an example of

Accepted Answer

A)  exclusive dealing. 
B)  a tying arrangement. 
C)  a selective promotion contract. 
D)  an exclusive territorial distributorship. 
E)  a requirement contract

Question 8

Americans born between 1981 and 1996 are referred to as

Accepted Answer

A)  Generation X. 
B)  baby boomers. 
C)  Generation Y. 
D)  baby busters. 
E)  Generation Z.

Question 9

What actions does the Federal Trade Commission have the power to implement when dealing with deceptive or misleading advertising and unfair business practices?

Accepted Answer

The answer of What actions does the Federal Trade Commission...

Question 10

A blended family is

Accepted Answer

A)  the result of the decline in divorce in recent years. 
B)  a household with unmarried partners. 
C)  a typical outcome of increased cohabitation. 
D)  a family formed by merging two previously separated units into a single household. 
E)  households formed with unrelated individuals.

Question 11

The courts see price fixing as per se illegal, which means the courts

Accepted Answer

A)  see price fixing itself as illegal. 
B)  do not view price fixing as illegal unless the intention was to harm the consumer. 
C)  only consider price fixing to be illegal if a company is sued. 
D)  compare the company behavior to behavior typical in its industry in determining legality. 
E)  view price fixing as illegal only if it causes destructive competition.

Question 12

Electronic commerce refers to

Accepted Answer

A)  an information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunications technologies and digitized offerings. 
B)  any activity that uses electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services. 
C)  two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller. 
D)  electronic storefronts that focus on converting an online browser into an online, catalog, or in-store buyer. 
E)  electronic storefronts that advertise and promote a company's products and services and provide information on how items can be used and where they can be purchased.

Question 13

Bombas has donated more than 10 million pairs of socks to homeless shelters in its efforts to help "an under-publicized problem in the United States." This is an example of which increasingly common cultural value?

Accepted Answer

A)  social action 
B)  competition 
C)  reducing inequality 
D)  believing in fate 
E)  reducing cognitive dissonance

Question 14

Geek Squad set out to provide timely and effective help with all computing needs regardless of the make, model, or place of purchase. Employees were called "agents" and wore uniforms with a Geek Squad logo to create a "humble" attitude that was not threatening to customers. Agents could also be identified by

Accepted Answer

A)  their required crew cuts or ponytails. 
B)  their black-and-white vehicles with the logo on the door. 
C)  the tablet devices they constantly carry. 
D)  pocket protectors and faux black glasses, used to play up the theme. 
E)  the location consumers could find them in the store, an actual freestanding "shack."

Question 15

A metropolitan statistical area refers to

Accepted Answer

A)  a statistical area that has at least one urban cluster of at least 10,000 but less than 50,000 people and adjacent territory that has a high degree of social and economic integration. 
B)  a statistical area of 2.5 million people or more. 
C)  a cluster of exurbs that function as a single unit due to the proximity of their geographic locations to an urbanized area. 
D)  a highly urbanized area with a centrally located population of at least 1,000,000 people. 
E)  a statistical area of at least one urbanized area of 50,000 or more people and adjacent territory that has a high degree of social and economic integration.

Question 16

Registration under the Lanham Act provides important advantages to a trademark owner that has used the trademark in interstate or foreign commerce, but it does not

Accepted Answer

A)  allow a trademark to be used for more than 83 years. 
B)  provide reciprocity with foreign firms allowing their trademarks to be honored here. 
C)  prevent other firms from obtaining similar trademarks for significant improvements on the original product. 
D)  guarantee protection under the Trademark Law Revision Act. 
E)  confer ownership.

Question 17

Multicultural marketing refers to combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different

Accepted Answer

A)  races or ethnic groups. 
B)  nations. 
C)  religions. 
D)  generational cohorts. 
E)  genders.

Question 18

Many consumers are committed to brands with a strong link to social action. An example of this would be

Accepted Answer

A)  McDonald's "I'm Lovin' It" campaign. 
B)  Airbnb's "We Accept" campaign. 
C)  Diesel's "Be Stupid" campaign. 
D)  Liz Claiborne's "Claiborne for Men" campaign. 
E)  Samsung's "The Jitterbug" campaign.

Question 19

All of the following statements about the environmental forces that have influenced Facebook are true except which?

Accepted Answer

A)  The federal government has a laissez-faire policy of not interfering with the development and marketing of Facebook and other social media websites. 
B)  Technological advances include voice recognition software, GPS enabled apps, high resolution cameras, and cloud storage. 
C)  There are a variety of other social networks such as WhatsApp, WeChat, and Twitter, while Facebook also competes with Google and Amazon for digital advertising revenue. 
D)  The global standard of living has been improving and the cost of mobile devices and Internet access declining. 
E)  People increasingly expect delivery of information and real-time communication with simultaneous prevention of fake news and offensive content.

Question 20

Recent legislation including the Telephone Consumer Protection Act and the Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act are reforms that are

Accepted Answer

A)  promotion-related. 
B)  price-related. 
C)  distribution-related. 
D)  self-regulated. 
E)  product-related.

Exam 3: Scanning the Marketing Environment