MKTG 409 Exam 1 Chapter 3 MindTap Study Guide – Marketing Environment, Competition &
Economic Forces Review
The Better Business Bureau
a.provides consumers with point-of-sale information about maintenance costs of
automobiles and major appliances.
b.sponsors meetings among local business leaders to facilitate the development of
self-regulatory programs.
c.is a local regulatory agency that is financially supported by local businesses.
d.has strong enforcement tools to use in dealing with firms that use questionable business
practices.
e.is a governmental regulatory group. - ANS ✔✔c.is a local regulatory agency that is financially
supported by local businesses.
In its advertisements, Florida Orange Juice Producers claim that it reduces the risk of cancer.
Members of the National Advertising Review Board believe the claim is unsupportable. What
action can the NARB take?
a. Force Johnson's to stop running the advertisement.
b. Fine Johnson's for each time the ad appears.
c. File a complaint with the Federal Trade Commission.
d. Sue Johnson's Hair Care Products in federal court.
e. Force television stations to stop airing the ad. - ANS ✔✔c. File a complaint with the Federal
Trade Commission.
Which of the following is not an advantage of self-regulatory programs?
a. Many self-regulatory programs do not have the tools or authority to enforce guidelines.
b. Self-regulatory guidelines are often more realistic and operational.
c. Self-regulatory programs are usually less expensive to establish and implement.
,d. Self-regulatory programs can reduce the need to expand government bureaucracy.
e. Managers prefer to have the opportunity to regulate themselves rather than having a
government agency regulate them. - ANS ✔✔a. Many self-regulatory programs do not have the
tools or authority to enforce guidelines.
If Janet Jones has an income of $20,000, pays $6,000 in rent, $1,200 in utilities, and $5,000 in
taxes per year, her disposable income is
a. $7,800
b. $14,000
c. $9,000
d. $20,000
e. $15,000 - ANS ✔✔e. $15,000
Technology
a. has little impact on buyers' or marketers' decisions. b. has only a positive influence on our
lives.
c. is the result of research conducted by businesses, universities, and nonprofit
organizations.
d. does not influence our standard of living.
e. is always beneficial. - ANS ✔✔c. is the result of research conducted by businesses,
universities, and nonprofit
organizations.
If consumers during a recession are less oriented toward conspicuous consumption, which
organization is most vulnerable to this change in cultural values?
a. Sears
b. Kmart
c. Kroger grocery stores
, d. Subway sandwich shops
e. Ralph Lauren/Polo - ANS ✔✔e. Ralph Lauren/Polo
Effective buying income is similar to
a. disposable income.
b. consumer income.
c. wealth.
d. buying power.
e. discretionary income. - ANS ✔✔a. disposable income.
Which of the following is a byproduct of recent changes in cultural values in the U.S.?
a.31 percent of the population is age 65 or over
b.Fewer marriages end in divorce
c.Increased conspicuous spending
d.More nonbiodegradable products
e.Televised condom ads - ANS ✔✔e.Televised condom ads
Expectations of future employment and of rising prices may increase people's
a. willingness to spend.
b. ability to obtain credit.
c. buying power.d. reluctance to buy.
e. accumulation of wealth. - ANS ✔✔a. willingness to spend.
Chrysler has developed aluminum car bodies that are 100 percent recyclable and help conserve
fuel. What kind of response is this to environmental forces?
a. competitive
Economic Forces Review
The Better Business Bureau
a.provides consumers with point-of-sale information about maintenance costs of
automobiles and major appliances.
b.sponsors meetings among local business leaders to facilitate the development of
self-regulatory programs.
c.is a local regulatory agency that is financially supported by local businesses.
d.has strong enforcement tools to use in dealing with firms that use questionable business
practices.
e.is a governmental regulatory group. - ANS ✔✔c.is a local regulatory agency that is financially
supported by local businesses.
In its advertisements, Florida Orange Juice Producers claim that it reduces the risk of cancer.
Members of the National Advertising Review Board believe the claim is unsupportable. What
action can the NARB take?
a. Force Johnson's to stop running the advertisement.
b. Fine Johnson's for each time the ad appears.
c. File a complaint with the Federal Trade Commission.
d. Sue Johnson's Hair Care Products in federal court.
e. Force television stations to stop airing the ad. - ANS ✔✔c. File a complaint with the Federal
Trade Commission.
Which of the following is not an advantage of self-regulatory programs?
a. Many self-regulatory programs do not have the tools or authority to enforce guidelines.
b. Self-regulatory guidelines are often more realistic and operational.
c. Self-regulatory programs are usually less expensive to establish and implement.
,d. Self-regulatory programs can reduce the need to expand government bureaucracy.
e. Managers prefer to have the opportunity to regulate themselves rather than having a
government agency regulate them. - ANS ✔✔a. Many self-regulatory programs do not have the
tools or authority to enforce guidelines.
If Janet Jones has an income of $20,000, pays $6,000 in rent, $1,200 in utilities, and $5,000 in
taxes per year, her disposable income is
a. $7,800
b. $14,000
c. $9,000
d. $20,000
e. $15,000 - ANS ✔✔e. $15,000
Technology
a. has little impact on buyers' or marketers' decisions. b. has only a positive influence on our
lives.
c. is the result of research conducted by businesses, universities, and nonprofit
organizations.
d. does not influence our standard of living.
e. is always beneficial. - ANS ✔✔c. is the result of research conducted by businesses,
universities, and nonprofit
organizations.
If consumers during a recession are less oriented toward conspicuous consumption, which
organization is most vulnerable to this change in cultural values?
a. Sears
b. Kmart
c. Kroger grocery stores
, d. Subway sandwich shops
e. Ralph Lauren/Polo - ANS ✔✔e. Ralph Lauren/Polo
Effective buying income is similar to
a. disposable income.
b. consumer income.
c. wealth.
d. buying power.
e. discretionary income. - ANS ✔✔a. disposable income.
Which of the following is a byproduct of recent changes in cultural values in the U.S.?
a.31 percent of the population is age 65 or over
b.Fewer marriages end in divorce
c.Increased conspicuous spending
d.More nonbiodegradable products
e.Televised condom ads - ANS ✔✔e.Televised condom ads
Expectations of future employment and of rising prices may increase people's
a. willingness to spend.
b. ability to obtain credit.
c. buying power.d. reluctance to buy.
e. accumulation of wealth. - ANS ✔✔a. willingness to spend.
Chrysler has developed aluminum car bodies that are 100 percent recyclable and help conserve
fuel. What kind of response is this to environmental forces?
a. competitive
