Question 1

In many geographic areas, there is only a single provider for gas and electric service for businesses and consumers. However, the government regulates that entity to ensure price protection for the buyer. This is an example of

Accepted Answer

A)   pure competition.
B)   a pure monopoly.
C)   an oligopoly.
D)   monopolistic competition.
E)   a megopoly.F) A) and E)
G) D) and E)

Question 2

There are many diet aids on the market. They promise immediate weight loss without exercise or a change in diet. Each is accompanied by a testimonial from a satisfied user. If you pay close attention, you will notice that each ad also contains the statement, "Results may vary." Most likely this statement is included to prevent the Federal Trade Commission (FTC)  from requiring the dietary aid distributor to

Accepted Answer

A)   engage in self-regulation.
B)   engage in comparative advertising.
C)   issue an advertising injunction.
D)   guarantee truth in advertising.
E)   run corrective advertising.F) C) and E)
G) B) and E)

Question 3

Which generational cohort is also known as the baby bust? Describe the interests and lifestyles of this cohort and explain why it is important to marketers.

Accepted Answer

The baby boom cohort is followed by Gene...

Question 4

The Lemon Tree is a high-fashion boutique selling top-of-the-line women's clothing and accessories. The keys to its success include knowing customers' changing tastes and providing something different than other retailers. In addition, because of the high value of the merchandise, The Lemon Tree's management is investing in the use of computerized inventory controls and sales order processing. The least important environmental force to The Lemon Tree at this time is likely to be

Accepted Answer

A)   economic.
B)   competitive.
C)   technological.
D)   social.
E)   regulatory.F) A) and B)
G) A) and C) E

Question 5

According to a Toyota executive, "After Superstorm Sandy, the Food Bank was having a problem fulfilling the needs of all the displaced residents, so we implemented a Toyota production system to help them package and distribute food more efficiently." This is an example of which concept of social responsibility?

Accepted Answer

A)   societal responsibility.
B)   value responsibility.
C)   benefit responsibility.
D)   profit responsibility.
E)   stakeholder responsibility.F) A) and E)
G) B) and E)

Question 6

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 of 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.F) D) and E)
G) A) and C)

Question 7

FedEx and UPS are converting their delivery trucks with standard diesel engines to more fuel-efficient and cleaner hybrid-electric vehicles, which can cut fuel costs by half and lower fuel emissions by 90 percent. This is an example of

Accepted Answer

A)   demarketing.
B)   triple-top line marketing.
C)   preemptive compliance.
D)   green marketing.
E)   cause marketing.F) A) and E)
G) A) and D)

Question 8

It had been the Campbell Soup Co.'s practice to insert clear glass marbles into the bottom of soup containers used in print advertisements to bring some of the soup's ingredients (e.g., noodles or chicken)  to the surface, thus misrepresenting the amount of solid ingredients in the soup. Which agency would monitor such a practice?

Accepted Answer

A)   Food and Drug Administration
B)   U.S. Department of Justice
C)   Federal Trade Commission
D)   Better Business Bureau
E)   American Marketing AssociationF) All of the above
G) None of the above C

Question 9

Recently, Chillafish recalled some of its Chillafish brand of children's balance bikes. The Consumer Product Safety Commission website stated that overinflated tires could cause the wheel rims to crack and send pieces of the plastic rim flying, posing a laceration hazard to consumers. Chillafish was responding to consumers' right to

Accepted Answer

A)   choose.
B)   be informed.
C)   be treated courteously.
D)   safety.
E)   happiness.F) D) and E)
G) All of the above

Question 10

Economic espionage refers to

Accepted Answer

A)   the destruction of a competitor's products or services through physical damage of property or damage to their reputation.
B)   persuading someone to act in one's favor, typically illegally or dishonestly, by a gift of money or other inducement.
C)   an illicit payment made to someone who has facilitated a transaction or appointment.
D)   the collection of trade secrets or other intellectual property from foreign countries or governments.
E)   the clandestine collection of trade secrets or proprietary information about a company's competitors.F) None of the above
G) A) and E)

Question 11

The Latin phrase caveat emptor is a legal concept that means

Accepted Answer

A)   "Cash on delivery."
B)   "Let the buyer beware."
C)   "Let's make a deal."
D)   "Be informed."
E)   "Such is life."F) A) and D)
G) All of the above

Question 12

Stakeholder responsibility refers to

Accepted Answer

A)   the view that an organization has an obligation to those who can affect the achievement of its objectives.
B)   the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit.
C)   the duty of a firm to maximize profits for its owners or stockholders.
D)   the concept that no expansion or additional research and development will occur until a company is making a profit.
E)   the idea that organizations are part of a larger society and are accountable to that society for their actions.F) A) and E)
G) A) and B)

Question 13

Small businesses make up a large portion of the competitive landscape for most businesses. There are approximately ________ small businesses in the United States.

Accepted Answer

A)   17 million
B)   29 million
C)   39 million
D)   52 million
E)   97 millionF) A) and B)
G) B) and D)

Question 14

The money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation is referred to as

Accepted Answer

A)   net income.
B)   disposable income.
C)   discretionary income.
D)   household income.
E)   gross income.F) B) and D)
G) C) and D) B

Question 15

Which of the following statements about social responsibility is most accurate?

Accepted Answer

A)   The three concepts of social responsibility are economic responsibility, internal social responsibility, and external social responsibility.
B)   Organizations are part of a larger society and are accountable to that society for their actions.
C)   Societal responsibility focuses on the obligations an organization has to its customers, employees, suppliers, and distributors.
D)   The duty of an organization is most easily understood at the societal responsibility level.
E)   social responsibility cannot be taught; it is an innate outgrowth of a person's moral and ethical belief system.F) D) and E)
G) C) and D)

Question 16

The portion of one's income that remains after paying for taxes and necessities is referred to as

Accepted Answer

A)   net income.
B)   discretionary income.
C)   disposable income.
D)   household income.
E)   gross income.F) A) and D)
G) A) and C)

Question 17

How did President John F. Kennedy move American business culture away from the concept of caveat emptor in the 1960s?

Accepted Answer

Before the 1960s, the legal concept of c...

Question 18

Visa and MasterCard have recently been accused of violating antitrust laws by improperly fixing credit and debit card fees (known as swipe fees)  paid by retailers to use their services, creating an anti-competitive environment. Legislation that prohibits price-fixing is an example of ________ forces that affect the marketing environment.

Accepted Answer

A)   economic
B)   ecological
C)   technological
D)   regulatory
E)   socialF) D) and E)
G) A) and B)

Question 19

Self-regulation refers to

Accepted Answer

A)   governmental guidelines that suggest what is legal and ethical and what is not.
B)   a self-imposed set of rules set by a specific industry watchdog group that dictates legal and ethical behaviors.
C)   an alternative to government control where an industry attempts to police itself.
D)   voluntary compliance to governmental rules and regulations set for a specific industry.
E)   a set of rules created and enforced by the FTC to which all members of an industry voluntarily agree to comply.F) C) and E)
G) A) and B)

Question 20

In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. Which of the following is a major principle that was included?

Accepted Answer

A)   to have legal representation in a court of law
B)   to exchange or return products and services within a reasonable period of time
C)   to receive fair prices for both products and services
D)   to be heard
E)   to be compensated for product defectsF) All of the above
G) A) and D)

Exam 3: Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

In many geographic areas, there is only a single provider for gas and electric service for businesses and consumers. However, the government regulates that entity to ensure price protection for the buyer. This is an example of

Correct Answer
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Correct Answer
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Which generational cohort is also known as the baby bust? Describe the interests and lifestyles of this cohort and explain why it is important to marketers.

Correct Answer
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The baby boom cohort is followed by Gene...
View Answer

Correct Answer
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E

Correct Answer
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Correct Answer
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FedEx and UPS are converting their delivery trucks with standard diesel engines to more fuel-efficient and cleaner hybrid-electric vehicles, which can cut fuel costs by half and lower fuel emissions by 90 percent. This is an example of

Correct Answer
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Correct Answer
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C

Correct Answer
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Economic espionage refers to

Correct Answer
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The Latin phrase caveat emptor is a legal concept that means

Correct Answer
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Stakeholder responsibility refers to

Correct Answer
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Small businesses make up a large portion of the competitive landscape for most businesses. There are approximately ________ small businesses in the United States.

Correct Answer
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The money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation is referred to as

Correct Answer
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B

Which of the following statements about social responsibility is most accurate?

Correct Answer
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The portion of one's income that remains after paying for taxes and necessities is referred to as

Correct Answer
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How did President John F. Kennedy move American business culture away from the concept of caveat emptor in the 1960s?

Correct Answer
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Before the 1960s, the legal concept of c...
View Answer

Correct Answer
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Self-regulation refers to

Correct Answer
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In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. Which of the following is a major principle that was included?

Correct Answer
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Exam 3: Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

In many geographic areas, there is only a single provider for gas and electric service for businesses and consumers. However, the government regulates that entity to ensure price protection for the buyer. This is an example of

Correct AnswerverifiedShow Answer

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Which generational cohort is also known as the baby bust? Describe the interests and lifestyles of this cohort and explain why it is important to marketers.

Correct AnswerverifiedThe baby boom cohort is followed by Gene...View AnswerShow Answer

Correct AnswerverifiedE

Correct AnswerverifiedShow Answer

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FedEx and UPS are converting their delivery trucks with standard diesel engines to more fuel-efficient and cleaner hybrid-electric vehicles, which can cut fuel costs by half and lower fuel emissions by 90 percent. This is an example of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedC

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Economic espionage refers to

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The Latin phrase caveat emptor is a legal concept that means

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Stakeholder responsibility refers to

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Small businesses make up a large portion of the competitive landscape for most businesses. There are approximately ________ small businesses in the United States.

Correct AnswerverifiedShow Answer

The money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation is referred to as

Correct AnswerverifiedB

Which of the following statements about social responsibility is most accurate?

Correct AnswerverifiedShow Answer

The portion of one's income that remains after paying for taxes and necessities is referred to as

Correct AnswerverifiedShow Answer

How did President John F. Kennedy move American business culture away from the concept of caveat emptor in the 1960s?

Correct AnswerverifiedBefore the 1960s, the legal concept of c...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Self-regulation refers to

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In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. Which of the following is a major principle that was included?

Correct AnswerverifiedShow Answer

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The baby boom cohort is followed by Gene...
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E

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C

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B

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Before the 1960s, the legal concept of c...
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