Chapter 3 Test Key for B2B marketing and B2C PDF

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Which of the following is the best example of how one's personal value system influences his or her buying behavior?...

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1. A situation in which products that perform the same function compete against one another is referred to as A. lateral competition. B. direct competition. C. functional competition. D. primary competition. E. indirect competition. 2. Compare the following product offerings. Which is the best example of direct competition? A. Burger King and Subway B carpet cleaning stores and . hardware stores that rent carpet cleaners C a pizza restaurant and a . fried chicken restaurant D. Google and Yahoo E. Coca-Cola and Arizona Iced Tea 3. Direct competition is also known as A. brand competition. B. in-house competition. C. market competition. D substitute . product competition. E. lateral competition.

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4. Karlee needed to pick up some toothpaste from the store. She was surprised to find that the store was out of her usual brand, Crest. Rather than go to another store, she decided to buy a tube of Colgate instead. In this example, Colgate represents A. indirect competition. B. an unsought good. C. a substitute product. D. a disposable product. E. lateral competition. 5. Indirect competition occurs when A. consumers purchase products that they did not intend to buy. B. consumers choose between two products that perform the same function. C. products are marketed to a new consumer segment. D. a company introduces a new product to its product line. E. products provide alternate solutions to the same market. 6. Compare the following product offerings. Which is an example of indirect competition? A. Burger King and Subway B. Crest and Colgate toothpaste C. Coca-Cola and Pepsi D. Sirius XM radio and Pandora E. Dunkin' Donuts and Krispy Kreme Doughnuts 7. Monitoring developments outside of the firm's control with the goal of detecting and responding to threats and opportunities is called A. data mining. B. environmental scanning. C. competitive analysis. D. brand positioning. E. market assessment. 2

8. A firm that is engaged in environmental scanning is monitoring developments outside of the firm's control in order to detect and respond to A. the strengths of the firm. B environmental issues . associated with the firm's operations. Cmarket opportunities . associated with environmental concerns. D. the weaknesses of the firm. E. threats and opportunities. 9. The six major external factors that influence the marketing environment of a firm are: economic, demographic, sociocultural, technological, legal and A environ . mental. B. internat ional. C. domest ic. D. politica l. E. financi al. 10. A sudden drop in the average consumer income would be an example of which external force affecting the marketing environment? A tech . nolog ical B econ . omic C politi . cal Dsocio . cultu ral E. lega l

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11. A measure of the market value of all officially recognized final goods and services produced within a country in a given period is referred to as A. purchasing power parity. B. gross domestic product. C. the balance of trade. D. the currency exchange rate. E. the consumer price index. 12. Overall GDP is the most common gauge of A. the overall expansion or contraction of an economy. B. the balance of trade between countries. C. fluctuations in currency exchange rates. D. unemployment and future job forecasting. E. the consumer price index and purchasing power parity. 13. Which of the following is the accurate cause of a recession? A. The unemployment rate declines for two or more consecutive quarters. B. Inflation and unemployment both rise consecutively. C. GDP declines for two or more consecutive quarters. D.The consumer price index falls below the average yearly standard. E. Inflation rises for two or more consecutive quarters. 14. Compare the following statements to determine which one accurately depicts how income is distributed across the U.S. population. A. Income for the middle class in the United States has consistently grown faster than any other wage earning bracket. B. Over the past several decades, there has been a robust shift in the lowest wage earners moving upward to the middle class. C. The top wage earners of the U.S. population are earning only a small percentage of the country's adjusted gross income. D. Over the past several decades, there has been little shift in any of the wage earning brackets of the U.S. population. E. Over the past several decades, income for the highest wage earners grew at a much quicker pace than for households in the bottom wage earning bracket. 4

15. Which of the following is the correct definition of inflation? A. The rise in the rate of unemployment due to a slowing economy B. An increase in the general level of prices of products in an economy over a period of time C. A decline in gross domestic product for two or more consecutive quarters D. The rise in the amount of goods and services that can be purchased for a specific amount of money E. A decline in consumer confidence about the overall state of the economy and their own personal finances 16. Daniel is looking to buy a hybrid vehicle because he is noticing that the price of gasoline continues to rise compared to years past. The rise in the price of gasoline is most likely a result of A. deflation. B. a recession. C. a rise in GDP. D. inflation. E. an increase in purchasing power. 17. If the cost of groceries goes up by 10 percent this year, the amount of groceries you can buy for $50 decreases by that same 10 percent. This is an example of A. deflation. B. a recession. C. a rise in GDP. D. a decline in GDP. E. a decrease in purchasing power. 18. A measure of how optimistic consumers are about the overall state of the economy and their own personal finances is referred to as A. consumer confidence. B. purchasing power. C. market confidence. D. purchasing confidence. E. consumer expectations.

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19. Which of the following is NOT considered to be a demographic characteristic? A. age B. gender C. ethnicity D. education level E. consumer confidence 20. The description of human populations based on characteristics such as age, gender, ethnicity, and education level is referred to as A. statistical analysis. B. sociocultural analysis. C. psychographics. D. demographics. E. consumer group profiling. 21. Which of the following is the fastest growing demographic group in the U.S.? A. teenager s B middle. aged women C. seniors D college. age males E. young adults 22. The generation of children born between 1946 and 1964 are retiring at a rate of 10,000 per day. What is the name of this demographic group? A. Millennials B. Generation x C. Generation y D. Digital natives E. Baby boomers

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23. Marketers are particularly interested in targeting baby boomers because they typically possess two things that marketing professionals seek: A. higher education levels and disposable income. B. higher paying jobs and greater interest in leisure activities. C. greater purchasing power and more consumer confidence. D. disposable income and free time. E. higher paying jobs and higher education levels. 24. The amount of spending money available to households after paying taxes is called A. discretionary income. B unaccountab . le income. C. disposable income. D. tax-free income. E. at-will income. 25. A marketer that uses social media sites to engage potential customers is most likely targeting which demographic group? A. Generation Z B. Generation X C. Silent Generation D. Millennials E. Baby Boomers

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26. Currently, females account for what percentage of all consumer purchases in the United States? A. 5 percent B. 12 percent C. 35 percent D. 60 percent E. 85 percent 27. Compare the following statements and select the one that reflects your text's assertion as to why educated consumers are prime targets for marketing strategies. A. Educated consumers are more likely to earn significantly more money throughout the course of their lifetime. B. Educated consumers are more willing to spend money than uneducated consumers. C. Educated consumers typically have more access to various forms of media and therefore are easier to target as a consumer group. D. Educated consumers know that in order to keep the economy moving, people must spend money. E. Educated consumers typically have less free time and therefore spend money on products that save them time and make their lives easier. 28. Which ethnic group population in the United States is expected to almost double by the year 2050? A. Asian Americans B. Hispanics C. African Americans D. Eastern Europeans E. Pacific Islanders

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29. The external marketing factor that refers to the combination of social and cultural factors that affect individual development is A. demogra phics. B. human nature. C. sociocult ural. D. ethnicity. E. culturalis m. 30. According to your text, one of the biggest sociocultural changes in the United States over the past half century has been A. the immigration of Hispanics into the country. B. the decline of females as the primary purchasers of products. C. the gradual increase of college graduates in the workplace. D. the increased use of the Internet for purchasing consumer products. E. the shift from one-income families to two-income and singleparent households. 31. What external marketing factor is at work when political action committees raise money to help elect individuals to promote a particular issue related to their industry? A. economic B. legal C. sociocultu ral D. political E. technologi cal 32. Which regulation was passed to eliminate monopolies and guarantee competition? A. the Robinson-Patman Act (1936) B. the Wheeler-Lea Act (1938) C. the Sherman Antitrust Act (1890) D. the Fair Packaging and Labeling Act (1966) E. the Telephone Consumer Protection Act (1991)

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33. The Consumer Protection Agency for the United States is the A. Consumer Protection Commission. B. Federal Communications Commission. C. Food and Drug Administration. D. Federal Trade Commission. E. Bureau of Consumer Financial Protection. 34. What was the purpose of the Wheeler-Lea Act (1938)? A. It eliminated monopolies and guaranteed competition. B. It made deceptive and misleading advertising illegal. C. It guaranteed that product packages are labeled correctly. D. It banned unfair credit card rate increases. E. It established the Federal Trade Commission. 35. According to your text, of all the external factors that affect the marketing environment, which one represents the most significant challenges, as well as the most significant opportunities, for marketing professionals? A. econo mic B demog . raphic C technol . ogical D sociocu . ltural E. politic al 36. While shopping for back-to-school clothes, Josie uses apps on her smartphone to comparison shop, and to obtain coupons and fashion advice. What external factor affecting the marketing environment does this represent? A. economic B. demograp hic C. legal D. sociocultu ral E. technologi cal 10

37. As described in your text, how did marketers at Disney utilize technology to provide a more hassle-free experience at their theme parks? A. by introducing wristbands with a radio-frequency identification device B. by installing smartphone charging stations C. by providing users with a park pass that could be used for their entire stay D. by introducing a laser stamp that could be used instead of a park pass E. by installing monitor screens showing wait times for various rides/attractions 38. Compare the following statements to determine which one is accurate regarding marketing on a global scale versus marketing domestically? A. There is no difference between how products are marketed globally versus domestically. B. The external marketing factors that are considered when marketing domestically do not apply when marketing products globally. C. Most U.S. firms do not need to consider the global marketing environment in any context. D.Environmental scanning on a global scale is more complex than it is in the domestic environment. E. Small businesses are not affected by global trends like large corporations are. 39. What term refers to how the value of one country's currency changes in relation to the value of other currencies? A. currency exchange B. currency fluctuation C. value fluctuation D. value exchange E. currency expectation

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40. The price of one country's currency in terms of another country's currency is referred to as A. the currency exchange rate. B. the currency fluctuation rate. C. the value fluctuation rate. D. the value exchange rate. E. the currency expectation rate. 41. Analyze the following statements to determine what would happen if the value of the euro appreciates relative to the dollar. A. It would increase the spending power of American consumers seeking to buy European products. B. It would reduce the spending power of European consumers seeking to buy American products. C. It would reduce the spending power of American consumers seeking to buy European products. D.The price of goods and services for European products would become evenly matched with American products. E. The spending power of both American and European consumers would increase. 42. What country has been criticized for undervaluing its currency? A Unite . d States B. Chin a C. Japa n D Great . Britai n E. Brazi l

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43. Currency fluctuations can provide marketing opportunities A. only when a currency is appreciating. B. only if currency exchange rates remain stable. C. only internationally, but not domestically. D. only when a currency is depreciating. E. whether a currency is appreciating or depreciating. 44. When marketers for Walt Disney World in Florida attract French and British families by advertising the resort's new affordability for Europeans, what global marketing environment factor are they employing? A. income distribution levels B. cultural fit C. lowered trade barriers D international . economic cooperation E. currency fluctuation 45. According to your text, what provides the most reliable picture of a country's purchasing power? A. an appreciating currency value B. its income distribution C. its level of gross domestic product D. a stable rate of currency fluctuation E. a high level of consumer confidence

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46. A nation's purchasing capability tends to increase when the proportion of A. lower-income households increase. B. upper-income households increase. C. top wage earners increase. D.middle-income households increase. E. top wage earners decreases. 47. When it comes to income distribution, what income class are marketing professionals particularly attracted to? A. middle-income households B. upper-income households C. the top wage earners D. lower-income households E. those below the poverty line 48. International trade agreements, monetary unions, and organizations can impact the environment in which a firm operates in all of the following ways EXCEPT A. they can affect how easy it is for firms to enter a foreign market. B. they can affect what the currency exchange rate is between countries. C. they can affect what competition firms will encounter in the domestic market. D. they can facilitate the exchange of money and products across borders. E. they can make it easier to bypass regulations on economic activity. 49. NAFTA is a trade agreement between A. Brazil, China, and India. B. the United States, Canada, and Mexico. C. the European Union and the United States. D. the United States and China. E. the United States, Mexico, and Brazil. 14

50. The largest share of U.S. exports are to A. the European Union. B. China. C. Canada and Mexico. D. Brazil and India. E. Canada and Japan. 51. Taxes on imports and exports between countries are called A.import/exp ort fees. B. trade restriction s. C. duties. D. tariffs. E. concessio ns. 52. What was one of the key goals of the North American Free Trade Agreement? A. the allowance of agricultural exports B. the elimination of tariffs C. the establishment of trade embargoes D. the establishment of trade sanctions E. the equalization of import/export fees 53. CAFTA is a trade agreement for countries in A. Africa. B. Asia. C Central . Americ a. D North . Americ a. E. Europ e.

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54. Which of the following countries is NOT part of the Central American Free Trade Agreement (CAFTA)? A. Costa Rica B. Brazil C. Guatem ala D. El Salvado r E. Hondur as 55. What country joined the Central American Free Trade Agreement in 2004? ADomini . can Republi c B. Brazil C. Cuba D United . States E. Mexic o 56. Which country belonging to the DR-CAFTA trade agreement has the largest economy? A. Costa Rica B. Nicaragua C. El Salvador D. Honduras E. Dominican Republic 57. Which of the following generated an estimated 26 percent share of the global gross domestic product, making it the largest economy in the world in 2010? A. the United States B. China C. the Central American countries of DR-CAFTA D. the European Union E. the North American countries of NAFTA

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58. Which of the following acronyms stands for the international organization that regulates trade among participating countries and helps importers and exporters conduct their business? A. IMF B. NAT O C. CAFT A D.NAFT A E. WTO 59. Which of the following organizations was formed in 1995 under the Marrakech Agreement and with its 153 members represents more than 97 percent of the world's population? A. WT O B. NAT O C. UN D NAF . TA E. IMF 60. Consider the following activities to determine which one is NOT a function of the International Monetary Fund. A. foster international monetary cooperation B. regulate trade among participating countries C. secure financial stability D. facilitate international trade E. reduce poverty around the world 61. The International Monetary Fund was particularly important when it was first created because it helped stabilize the world's economic system following A. World War I. B. World War II. C. the Great Depression. D. the break-up of the Soviet Union. E. the creation of the European Union.

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62. As of March 2013, how many countries are part of the IMF? A. 59 B. 86 C. 11 2 D. 18 8 E. 21 0 63. Which of the following represents how technology is being used in the global marketing environment? A. The use of translation programs which allows customers to view websites in their own language B. Companies advertising in both domestic and international publications C. Countries joining free trade agreements to facilitate the import and export of products D. Corporations that directly invest in foreign countries by opening satellite facilities overseas E. Companies outsourcing various functions such as customer service call centers to other countries 64. If a domestic firm makes the mistake of believing that foreign consumers want exactly the same products that are sold in the United States, then that firm is most likely ignoring the importance of A. consumer ethnocentrism. B. demographics. C. environmental scanning. D. cultural fit. E. consumer confidence. 65. What U.S. corporation was criticized when it created an in-store ad for some European stores that showed a Hindu goddess atop a ham sandwich with the caption, A snack that is sacred. A. McDon ald's B.Burger King C. Wendy 's D. Subwa y E. Denny 's 18

66. A belief by residents of a country that it is inappropriate or immoral to purchase foreign-made goods and services is known as A. cultural fit. B. xenophobia. C. consumer ethnocentrism. D. sociocultural bias. E. international protectionism. 67. Consider the following statements to determine which one accurately describes the concept of consumer ethnocentrism. A. A belief that the world's goods and services should be distributed fairly by all nations B. A belief by residents of a country that the goods and services they produce are superior to that of other countries C. A measure of how optimistic consumers are about the overall state of the economy and their own personal finances D. A measure of the amount of goods and services that can be purchased based on the currency exchange rate E. A belief by residents ...