Essentials of Marketing: Chapter 3: Evaluating Opportunities in Changing Market Environment: Review Questions

This case suggests which of the following are among the keys to Amazon's success?

-It focuses on its own costs over customer convenience

-Amazon recognizes opportunities in other countries

-Its access and use of data about its customers

-Amazon took advantage of its early profitability

Amazon recognizes opportunities in other countries

Its access and use of data about its customers

Customers and competitors are within the ______ market environment and must be considered during marketing strategy planning.

-parallel

-linear

-direct

-external

direct

A company's ______ help guide present decisions and create a path to follow for future development.

-objectives

-free market plan

-competition

-competitive advantage

objectives

An organization's _________________ statement describes the organization's basic purpose for existing.

mission

Firms need a hierarchy of objectives, moving from company objectives to ______.

-competitive strategies

-market environment

-head-on competition

-marketing objectives

marketing objectives

Which of the following is an Amazon innovation?

-A smartphone app called Siri

-Flyknit running shoes

-Lobbying for more favorable laws

-Amazon Echo smart speaker

Amazon Echo smart speaker

What is an important requirement of the marketing strategy planning process?

-Adjusting production quotas to meet consumer demand

-Contacting distributors of marketing materials

-Narrowing down the list of opportunities to those most likely to succeed

-Conducting in-person interviews with a representative sample of potential customers

Narrowing down the list of opportunities to those most likely to succeed

Company ____________________ should guide all aspects of a business and are used by marketing managers as they search for and evaluate opportunities.

objectives

Which of the following aspects should a company evaluate in order to determine its strengths and weaknesses?

-Stock market trends

-Employee knowledge

-Production capability and flexibility

-Current products

-Market demands

Employee knowledge

Production capability and flexibility

Current products

Market demands

Which of the following documents describes a firm's basic purpose?

-Competitive advantage

-Objective statement

-Strategic plan

-Mission statement

Mission statement

Which of the following is most crucial for entering an attractive market?

-A risky marketing plan

-A trained sales force

-A low-budget plan

-Access to capital

Access to capital

Managers should set marketing objectives within the framework of larger ______.

-personal objectives

-target markets

-state regulations

-company objectives

company objectives

In many businesses, the __________ of producing and selling each unit decreases as the number of units produced increases.

cost

Which of the following are examples of marketing strengths that might be enjoyed by the Coca Cola Company?

-Efficient manufacturing facilities

-Good relationships with retailers

-Experienced sales force

-Recognizable branding

Good relationships with retailers

Experienced sales force

Recognizable branding

Marketing managers find breakthrough opportunities or competitive advantage by using their strengths to take on competitors with similar strengths.

-True

-False

False

When considering starting a new business, which of the following can be a financial strength?

-Loyal customers

-Access to capital

-Market share

-Brand recognition

Access to capital

When marketing managers analyze similar businesses and their strategies, they are considering the ______ environment.

-competitive

-social

-internal

-mass

competitive

Which of the following are true of smaller firms?

-They are often handicapped with large special-purpose facilities.

-They are likely to have larger sales forces and production facilities.

-They can have the advantage of flexibility.

-They can be at a disadvantage because the cost of producing less units is higher.

They can have the advantage of flexibility.

They can be at a disadvantage because the cost of producing less units is higher.

Home Depot has great relationships with building contractors. This is an example of a(n) ______ strength.

-marketing

-monopolistic

-quantitative

-ethical

marketing

The four basic market situations include monopoly, pure competition, monopolistic competition, and ____________________.

oligopoly

Which two of the following factors are part of the competitive environment for a fast food chain?

-Types of restaurants in the market

-Income levels in the market

-Availability of finance opportunities in the market

-Number of restaurants in the market

Types of restaurants in the market

Number of restaurants in the market

How common are monopoly situations in market-directed economies?

-Unheard of

-Extremely common

-Relatively common

-Relatively rare

Relatively rare

In pure competition, where competitors offer similar products, over time, profit margins generally ______.

-increase steadily

-stay the same

-fall before increasing

-decline

decline

The market for breakfast cereals includes many brands and marketing mixes that some customers see as different despite their similarities in terms of ingredients and branding. The breakfast cereal market can be described as ______.

-monopolistic competition

-oligopoly

-monopoly

-pure competition

monopolistic competition

Which four of the following are basic market/competitive situations a company might face?

-Oligopoly

-Pure competition

-Monopoly

-Monopolistic competition

-Isolationism

-Customer competition

Oligopoly

Pure competition

Monopoly

Monopolistic competition

Which of the following activities are part of the basic approach to competitor analysis?

-Seek new sources of financial capital.

-Evaluate the strengths and weaknesses of your target market and marketing mix.

-Study the strategies of successful businesses in other industries.

-Understand how your marketing mix compares to your competitors' offerings and strategy.

-Identify existing and potential competitors.

Evaluate the strengths and weaknesses of your target market and marketing mix.

Understand how your marketing mix compares to your competitors' offerings and strategy.

Identify existing and potential competitors.

Marketing managers focus their competitive analysis on ______, firms that offer similar products and marketing mixes.

-sales forecasts

-global partners

-competitive rivals

-mission statements

competitive rivals

Which competitive market situation describes one organization having total control over a product-market?

-Monopoly

-Pure competition

-Oligopoly

-Market-directed economy

Monopoly

Which of the following statements regarding marketing managers and potential competitors is true?

-It is unethical for marketing managers to seek information about competitors.

-A marketing manager should avoid information about competitors.

-Hearing too much about competitors will negatively influence marketing managers.

-A marketing manager should research and seek information about competitors.

A marketing manager should research and seek information about competitors.

In pure competition, customers see the different available products as close substitutes. Many marketing managers compete by ______.

-reducing quality to cut costs

-negative advertising

-making significant changes to their product offerings

-lowering prices and sacrificing profits

lowering prices and sacrificing profits

In ______ competition, several firms offer marketing mixes that at least some customers see as different. In this situation, marketing managers try to differentiate their offerings by adjusting other aspects of the marketing mix.

-idealistic

-homogeneous

-free

-monopolistic

monopolistic

The first step in competitor analysis is to identify potential ______.

-pitfalls

-competitors

-target markets

-product concepts

competitors

Macro-economic factors that influence consumer spending, including rates of inflation and economic growth, are part of the ______ environment.

-political

-economic

-social

-competitive

economic

In competitive analysis, marketing managers attempt to identify those firms whose products and marketing mix are the most similar, these firms are known as ______.

-market share

-competitive hardships

-strategic rivals

-competitive rivals

competitive rivals

The collapse of the U.S. housing market in 2008 was an example of a rapid change in the ______ environment.

-competitive

-political

-direct market

-economic

economic

Aliza is the marketing manager at SinoSure Foods, an Asian food company. She has been going to stores to check out the new products that can be substitutes of SinoSure Foods. She is actively seeking out information about current and potential _____________________.

competitors

Susan is a first-time home buyer. She wants to keep her monthly mortgage payments as low as possible. Which of the following would work in her favor?

-A high inflation rate

-A high interest rate

-A low interest rate

-A short-term loan

A low interest rate

The _____________________ environment changes more rapidly than the cultural and social environment.

economic

What term describes the use of scientific advancements to help convert resources into goods and services?

-Technology

-Marketing

-Processing

-Environmentalism

Technology

Which three of the following are considered elements of the economic environment?

-Inflation rates

-National income

-Economic growth rates

-Political instability

-Communication infrastructure

Inflation rates

National income

Economic growth rates

What are the most likely pending effects of the technology of driverless cars in the future?

-Fewer alcohol-related auto accidents

-Higher auto insurance premiums

-Less need for emergency services in hospitals

-More multitasking in automobiles

Fewer alcohol-related auto accidents

Less need for emergency services in hospitals

More multitasking in automobiles

Which of the following is an example of change in the economic environment that can affect a company's marketing strategy?

-The emergence of environmentalism in the 1970s.

-The collapse of the U.S. housing market in 2008.

-The introduction of additional taxes on imported goods.

-The presence of cultural diversity that affects customer preference.

The collapse of the U.S. housing market in 2008.

Artificial intelligence refers to:

-humans that operate like machines.

-machines that operate like humans.

machines that operate like humans.

The _______________ rate is the cost associated with borrowing money.

interest

Which is the best definition of the metaverse?

-a marketing strategy for video games

-an area of outer space where satellites orbit

-an in-person meeting at a tech company

-an interactive space in virtual reality

an interactive space in virtual reality

A major difference between the economic environment and the cultural and social environment is that the economic environment ______.

-does not affect marketing strategy

-always stays the same

-changes rapidly

-changes very slowly

changes rapidly

Some businesses avoid using new technology because they don't understand it, while other companies immediately use every new technology without assessing its value. Both of these approaches can steer a company into a ______ way of thinking.

-marketing-oriented

-production-oriented

production-oriented

When an auto manufacturer applies scientific advancements to improve the gas mileage of its vehicles and increase sales, it is taking advantage of ______.

-culture

-economics

-technology

-finance

technology

Protecting the interest of one's country before everything else, also known as ______, can strongly affect marketing efforts for multinational firms.

-homogeneity

-colonialism

-ethnocentrism

-nationalism

nationalism

Company managers can accurately predict long-range effects of technological advances.

-True

-False

False

Carrie walks into her kitchen every morning and speaks to a device on her counter, "Alexa, what's the weather today?" The device she is interacting with is based on what technology?

-JIT

-IM

-ISO

-AI

Al

The United States, Canada, and Mexico have an agreement in which there are no restrictions on imports and exports between the three countries. This is an example of ______.

-free trade

-the four Ps

-nationalism

-the marketing mix

free trade

The metaverse exists in ____________ reality.

virtual

The legal environment of the United States assumes that competition between numerous small businesses ______ the economy.

-helps

-moderates

-reduces

-degrades

helps

To use technology in the best possible way, marketing managers must ______.

-make sure they learn the most up-to-date technologies.

-employ a technology person on the marketing team

-begin with customer needs

-understand that technology will only offer new opportunities

begin with customer needs

Under English and U.S. common law systems, a seller is required to do which three of these things?

-Maintain quality

-Uphold contracts

-Tell the truth

-Stand behind the firm's product

-Guarantee satisfaction

Uphold contracts

Tell the truth

Stand behind the firm's product

China's resistance to foreign firms is an example of ______.

-globalism

-capitalism

-democracy

-nationalism

nationalism

To protect consumers, Congress passed an act in 1972, which set up the _____________________________________ Commission. The Commission has broad power to set safety standards and can impose penalties for failure to meet these standards.

Consumer Product Safety

Businesses and individual managers are subject to both _____________ and ____________ laws.

criminal, civil

Regional economic groupings such as the North American Free Trade Agreement are likely to promote similar ______ environments among member countries.

-cultural

-social

-technological

-political

political

In the United States, businesses that try to ______ competition are thought to act against the public interest.

-cultivate

-grow

-limit

-nurture

limit

There are state and city laws regulating ______.

-the maximum amount of benefits the company can offer

-the number of employees a business must have

-starting up a business

-the setting of prices

starting up a business

the setting of prices

In the U.S. marketplace, vigorous competition is expected to ______ careful consumers.

-exploit

-protect

-diminish

-reduce

protect

Which of the following variables contribute to the cultural and social environment?

-Trade regulations

-Education level

-Religious beliefs

-Language

-Clothing styles

Education level

Religious beliefs

Language

Clothing styles

Which of the following groups is responsible for establishing and enforcing safety standards in the United States?

-Consumer Product Safety Commission

-Consumer Services Safety Committee

-U.S. Commission for Safety

-Safety Commission for Consumers

Consumer Product Safety Commission

A marketer who is analyzing demographic trends might study ______.

-current government-imposed taxes

-the age of the population

-the buying habits of the population

-products offered by the competition

the age of the population

Management officials at Grace's Granola Corp. were found guilty of using low-cost artificial ingredients while claiming to use completely natural ingredients. This was considered a criminal offense. What type of legal action could a judge impose on these managers?

-No legal action could be taken

-A jail sentence

-A civil lawsuit

-A retribution claim

A jail sentence

Which of these statements regarding population trends is accurate?

-About 80% of U.S. residents live in urban areas.

-More residents of Kenya live in urban areas compared to urban residents in the U.S.

-About 50% of U.S. residents live in rural areas.

-More U.S. residents live in urban areas compared to urban residents in Japan.

About 80% of U.S. residents live in urban areas.

In Parul's condominium community, it is illegal to sell magazines door-to-door. This is an example of a ______ law.

-local

-national

-state

-federal

local

Gross domestic product is a widely used measure of ______.

-gross profits

-currency values

-national birth rates

-national income

national income

The various ways in which people live, including their motivations and behaviors, are part of the ______ environment.

-political and regulatory

-cultural and social

-economic and financial

-legal and ethical

cultural and social

The degree of _______________ of a population can determine the way information is delivered.

literacy

The United States makes up nearly 50% of the total world population.

-True

-False

False

Which of the following regions in the United States are currently experiencing the highest rates of population growth?

-The northeast

-The midwest

-The southeast

-The west

The southeast

The west

Fifty years ago, about two-thirds of the world's population lived in ________ areas.

rural

The total value of all of the goods and services produced within a country in a given year is known as ______.

-gross national income

-gross domestic product

-gross national product

-gross domestic output

gross domestic product

In the United States, people over the age of 65 (regardless of the year they were born) are called ______.

-young millennial

-Generation X

-senior citizens

-Generation Y

senior citizens

Which of these companies is being affected by literacy?

-Dimension Development Corp. is creating a marketing campaign for senior citizens and a separate campaign for millennials.

-Kimball's Kroutons added pictures of ingredients to its packaging being sold in Ethiopia for consumers who could not read a list of ingredients.

-Katrine's Computers has provided alternative power cords to consumers with different electrical sources.

-Chuck's Cheeses produces both organic and traditional products to reach a broader consumer market.

Kimball's Kroutons added pictures of ingredients to its packaging being sold in Ethiopia for consumers who could not read a list of ingredients.

Generation X is _____ in number than the baby boom generation.

-larger

-smaller

smaller

Which of the following statements about Generation Y are true?

-They prefer possessions over experiences.

-They are not bargain hunters.

-They are health conscious.

-They are relatively comfortable with technology.

They are health conscious.

They are relatively comfortable with technology.

A regional population ______ typically creates stronger competition among firms in the area.

-increase

-stagnation

-decline

decline

What name is generally given to those born between 1995 and 2010?

-Baby boomers

-Millennials

-Generation Y

-Generation Z

Generation Z

People of what age range are generally considered senior citizens in the United States?

-Over 16

-Over 35

-Over 65

-Over 45

Over 65

What nickname is given to those born after 2010?

-Generation Alpha

-Generation X

-Millennials

-Baby boomers

Generation Alpha

The people born between 1965 to 1977 are referred to as ______.

-Generation X

-Generation Y

-senior citizens

-Millennials

Generation X

The people born from 1978 to 1994, who are sometimes called Millennials, are referred to as ______.

-Generation Y

-Generation X

-baby boomers

-senior citizens

Generation Y

What is the best definition of strategic business units?

-categories of customers who use a product or service

-units of production

-bank branches that handle business accounts

-independently managed divisions of a large company

independently managed divisions of a large company

After analyzing environmental trends and the firm's resources and objectives, marketing managers should develop ______ to narrow down the number of strategic choices.

-new sources of capital

-screening criteria

-a list of product ideas

-customer relationships

screening criteria

Which of the following are likely to be true for members of Generation Z?

-patronize companies with their values

-early adopters of social media

-comfortable with technology

-spend most income on their children

patronize companies with their values

early adopters of social media

comfortable with technology

Which society-transforming event began during the lifetime of Generation Alpha?

-World War II

-COVID-19 pandemic

-introduction to the smartphone

-invention of the Internet

COVID-19 pandemic

Which of the following factors do marketing managers consider when evaluating the industry attractiveness dimension of a product-market plan?

-The potential environmental impact of the plan

-Market size and rate of growth

-The skills and abilities of the firm's employees

-The types and amount of competition in the industry

The potential environmental impact of the plan

Market size and rate of growth

The types and amount of competition in the industry

It is more difficult to evaluate opportunities in international markets due to the wide range of environmental variables.

-True

-False

True

Divisions of a large company that are managed independently are termed ____________ business units.

strategic

What is the purpose of developing screening criteria to select choices for a marketing strategy?

-They remove the qualitative components from the decision-making process.

-They summarize in one place what the firm wants to accomplish.

-They expand the number of strategies that the firm can consider implementing.

-They justify the manager's intuition or gut feeling concerning the strategy to follow.

They summarize in one place what the firm wants to accomplish.

The ______ dimension of a strategic planning grid helps managers determine whether a product-market plan is a good idea.

-strength and weakness

-competitive advantage

-industry attractiveness

-business strengths

industry attractiveness

Which two of the following statements about international markets are true?

-It can be challenging to anticipate potential business risks.

-If the international market selected has a stable government, business operations are guaranteed to go smoothly.

-It is often difficult to gain a full understanding of the market environment variables.

-Because the risks of international markets are nearly impossible to determine, no analysis is necessary before entering the markets.

It can be challenging to anticipate potential business risks.

It is often difficult to gain a full understanding of the market environment variables.