Marketing Chapter 3

Environmental scanning is:

A. The process of evaluating employee performance
B. The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends
C. The process of developing new products for customers
D. The process of creating promotional campaigns

Answer: B The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends

Which environmental force includes demographic shifts and cultural changes?

A. Economic
B. Technological
C. Social
D. Regulatory

Answer: C. Social

Which environmental force includes macroeconomic conditions and consumer income?

A. Social
B. Economic
C. Competitive
D. Regulatory

Answer: B. Economic

Which environmental force includes changing technology and technology-enabled data analytics?

A. Technological
B. Social
C. Competitive
D. Economic

Answer: A. Technological

Which environmental force includes alternative forms of competition and small businesses?

A. Regulatory
B. Economic
C. Competitive
D. Social

Answer: C. Competitive

Which environmental force includes laws protecting competition and laws affecting marketing mix actions?

A. Technological
B. Social
C. Competitive
D. Regulatory

Answer: D. Regulatory

Social forces refer to:

A. Inventions or innovations from applied science
B. Restrictions placed on business activities by law
C. Demographic characteristics of the population and its culture
D. Income and expenditures affecting households

Answer: C. Demographic characteristics of the population and its culture

Demographics describe a population according to selected characteristics such as:

A. Entry barriers and substitutes
B. Age, gender, ethnicity, income, and occupation
C. Laws and regulations
D. Technology adoption rates

Answer: B. Age, gender, ethnicity, income, and occupation

Why do demographics matter?

A. They determine legal restrictions on firms
B. They explain who makes up an audience and help segment customers by characteristics and needs
C. They measure macroeconomic performance
D. They define competitive market structures

Answer: B. They explain who makes up an audience and help segment customers by characteristics and needs

Culture incorporates:

A. Income and expenditure patterns
B. A set of values, ideas, and attitudes that are learned and shared among members of a group
C. Market structures and competition
D. Technological breakthroughs

Answer: B. A set of values, ideas, and attitudes that are learned and shared among members of a group

Economic forces pertain to:

A. Demographic characteristics of a population
B. Income, expenditures, and resources that affect the cost of running a business and a household
C. Restrictions placed on business activities
D. Inventions resulting from engineering research

Answer: B. Income, expenditures, and resources that affect the cost of running a business and a household

Technological forces are:

A. Restrictions state and federal laws place on business activities
B. Inventions or innovations from applied science or engineering research
C. Demographic characteristics of the population and its culture
D. Income and expenditures affecting households

Answer: B. Inventions or innovations from applied science or engineering research

The competitive environment encompasses:

A. Only the number of competitors
B. The number of competitors, their relative size, and the degree of interdependence within the industry
C. Only substitute products
D. Only pricing behavior

Answer: B. The number of competitors, their relative size, and the degree of interdependence within the industry

Regulatory forces are:

A. Demographic shifts and cultural values
B. Restrictions state and federal laws place on business with regard to the conduct of its activities
C. Technological breakthroughs
D. Income and expenditure patterns

Answer: B. Restrictions state and federal laws place on business with regard to the conduct of its activities