Question 1

Business has responded to increased awareness of nature's fragility and finiteness by producing wider varieties of camping,hiking,boating,and fishing gear such as boots,tents,backpacks,and accessories.

Accepted Answer

The statement is correct as it highlights how businesses are responding to the increased environmental awareness by producing more eco-friendly and sustainable outdoor gear for camping, hiking, boating, and fishing.

Question 2

Companies assume that the lower the product-penetration percentage,the lower will be the market potential.

Accepted Answer

Companies often view a low product-penetration percentage as an indication of high market potential, suggesting that there are many potential customers who have not yet purchased the product.

Question 3

Forecasting is the art of anticipating what buyers are likely to do under a given set of conditions.

Accepted Answer

Forecasting involves predicting the future behavior of buyers or markets based on past data and current trends, and it is an important tool used in business and economics.

Question 4

Consumer expenditures are affected by income levels,savings,debt,and credit availability.

Accepted Answer

Consumer expenditures are influenced by various factors including their income levels, savings, debt, and credit availability. Higher levels of income usually lead to increased spending, while tighter budgets may result in reduced spending. Consumers with more savings may have a greater ability to make large purchases or investments, while those in debt may be more cautious with their spending. Additionally, credit availability and interest rates can affect consumer behavior and their ability to make purchases through loans or credit cards.

Question 5

Corporate environmentalism recognizes the need to integrate environmental issues into the firm's strategic plans.

Accepted Answer

Corporate environmentalism involves the integration of environmental issues and concerns into a company's strategic plans and decision-making processes. It reflects a recognition of the impact that business practices can have on environmental sustainability and seeks to mitigate these impacts while promoting ecological responsibility.

Question 6

Demand estimates prepared by companies are based on four different time periods.

Accepted Answer

The answer of Demand estimates prepared by companies are based...

Question 7

Market demand for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program.

Accepted Answer

The definition of market demand includes all of these defined parameters.

Question 8

An expansible market is unlikely to be affected by the level of industry marketing expenditures.

Accepted Answer

An expansible market, which is capable of growth or expansion, is likely to be affected by the level of industry marketing expenditures because increased marketing efforts can raise awareness, attract new customers, and ultimately expand the market size.

Question 9

Industrial economies provide limited marketing opportunities for luxurious goods.

Accepted Answer

Industrial economies provide more marketing opportunities for luxurious goods as people have higher purchasing power and disposable income.

Question 10

Environmental regulations enforced by the government adversely affect automobile and steel manufacturing companies.

Accepted Answer

Environmental regulations enforced by the government often require costly changes to the manufacturing processes of automobile and steel companies, leading to decreased profits and increased expenses.

Question 11

Environmental laws imposed by the government may at times create new business opportunities.

Accepted Answer

Environmental laws may require businesses to comply with certain standards or regulations, which can create opportunities for companies that offer products or services that help other businesses meet these requirements. For example, a company that specializes in renewable energy or waste management may benefit from laws promoting sustainability or reducing carbon emissions.

Question 12

The time between introduction of products and peak production is shrinking.

Accepted Answer

With advances in technology and more efficient production processes, companies are able to bring products to market faster and scale production more quickly. This means that the time between introducing a product and reaching peak production levels is generally decreasing.

Question 13

The U.S.leads the world in annual R&D expenditures while Japan is fast increasing its R&D expenditures in physics,biophysics,and computer science.

Accepted Answer

The statement is true. According to the National Science Foundation, in 2018 the U.S. spent approximately $558 billion on research and development, while Japan spent approximately $170 billion in the same year. However, Japan has been increasing their R&D investments in certain fields such as physics, biophysics, and computer science.

Question 14

Governments have reduced their agencies' powers to investigate and ban potentially unsafe products.

Accepted Answer

Governments typically maintain or enhance their agencies' powers to investigate and ban potentially unsafe products to protect public health and safety.

Question 15

In order to estimate future demand,companies commonly prepare a company sales forecast first,followed by an industry forecast,and finally a macroeconomic forecast.

Accepted Answer

Companies typically start with a macroeconomic forecast to understand the overall economic environment, then an industry forecast to gauge the specific market conditions, and finally, a company sales forecast to predict their own sales based on the broader economic and industry outlooks.

Question 16

The market forecast shows expected market demand,not maximum market demand.

Accepted Answer

The market forecast predicts the expected demand for a product or service based on various factors such as consumer behavior, market trends, and economic conditions. It does not necessarily represent the maximum market demand, which may be influenced by various unpredictable factors.

Question 17

The penetrated market is the set of consumers who have an interest in a market offer but do not have the accessibility.

Accepted Answer

The definition of penetrated market is incorrect. A penetrated market is the set of consumers who have purchased or used a specific product or brand within a particular market.

Question 18

Trends in the natural environment for marketers to be aware of include the shortage of raw materials,especially water;increased pollution levels;and the changing role of governments.

Accepted Answer

These are all key trends in the natural environment that are important for marketers to take into consideration in their strategies and operations.

Question 19

Secondary beliefs and values are passed on from parents to children and reinforced by major social institutions,making them very difficult to change by marketers.

Accepted Answer

Secondary beliefs and values are more open to change than core beliefs and values, making them somewhat easier for marketers to influence through advertising and other forms of communication.

Question 20

The available purchasing power in an economy depends on current income,prices,savings,debt,and credit availability.

Accepted Answer

The available purchasing power in an economy is dependent on a variety of factors including current income, prices, savings, debt, and credit availability. These factors can all impact an individual or household's ability to purchase goods and services. Therefore, A is the correct answer.

Quiz 3: Gathering Information and Forecasting Demand