Question 1

Coupons is a frequently used marketing tactic for which form of competition?

Accepted Answer

Coupons are commonly used in monopolistic competition because businesses use them to attract customers and differentiate their products from competitors in the market. In pure competition, businesses have little control over their prices, so using coupons would not be effective. Oligopolies and monopolies have limited competition, so coupons are not as necessary. Cross-market competition refers to businesses in different industries competing for the same customer, so the use of coupons would depend on the specific industries involved.

Question 2

During the holiday shopping season,many catalog retailers offer buyers price reductions,coupons,two-for-one deals,and/or free delivery.This is because these catalog retailers operate in a(n)__________ environment.

Accepted Answer

Catalog retailers offer buyers various incentives during the holiday shopping season, which suggests that they operate in a monopolistic competition environment. Monopolistic competition refers to a market structure where there are many small firms that offer differentiated products. These firms compete based on product differentiation, price, marketing, and other strategies. The holiday season is a time when consumers are looking for deals and incentives, and catalog retailers try to differentiate themselves from their competitors by offering various promotions, discounts, and other deals. Therefore, the catalog retailers' behavior is consistent with the characteristics of monopolistic competition.

Question 3

Paul Avery is a salesperson at the only Ford automobile dealership in Wausau,Wisconsin.However,there are several other auto dealerships in town,offering both domestic and foreign cars and trucks.Paul works hard to keep his customers satisfied because he knows that if his customers are unhappy,they can simply buy a car from one of the several other comparable dealers in Wausau.This marketing environment is an example of

Accepted Answer

The presence of several other auto dealerships offering both domestic and foreign cars and trucks indicates that there is competition in the market. However, each dealership offers a slightly different range of products and services, which means that there is some differentiation. This is typical of a monopolistic competition market structure.

Question 4

The form of competition where just a few companies control the majority of industry sales is referred to as __________.

Accepted Answer

An oligopoly is a market structure where a few large firms have control over the market, meaning that they can influence the price and output of goods and services. This can lead to limited competition, as the smaller firms have difficulty competing with the larger firms' economies of scale and can struggle to enter the market due to high barriers to entry.

Question 5

Kodak,Fuji,and Agfa control the majority of sales for traditional 35mm photographic film.The photographic film industry is an example of a(n)__________.

Accepted Answer

The fact that Kodak, Fuji, and Agfa control the majority of sales for traditional 35mm photographic film implies that there are only a few dominant firms in the market, indicating an oligopoly.

Question 6

The form of competition in which there are many sellers and they each have a similar product is referred to as __________.

Accepted Answer

Pure competition is a market structure where there is a large number of small firms selling an identical product. In this form of competition, no single firm has any control over the market price, and all firms are price takers. This means that the price is determined by the forces of supply and demand, and individual firms have no power to influence the market price.

Question 7

According to a recent Federal Communications Commission report,AT&T,Verizon,Sprint-Nextel,and T-Mobile control the vast majority of the subscribers in the U.S.wireless mobile phone market.Which form of competition characterizes this market?

Accepted Answer

An oligopoly is a market structure in which a few large firms dominate the market. In this case, the four major wireless carriers, AT&T, Verizon, Sprint-Nextel, and T-Mobile, control the majority of the subscribers in the U.S. wireless mobile phone market, indicating an oligopolistic competition.

Question 8

Small businesses account for __________ of the gross domestic product (GDP).

Accepted Answer

According to the Small Business Administration, small businesses account for approximately 50 percent of the gross domestic product (GDP) in the United States.

Question 9

__________ is the form of competition where distribution is the only element of the marketing mix that exerts an impact on the firm.

Accepted Answer

Pure competition is a market scenario where there are a large number of buyers and sellers dealing with homogeneous products. Hence, distribution is the only element of the marketing mix that can have an impact on the firm's performance because the product, price, and promotion are all uniform across all competitors.

Question 10

Because there are few sellers,price competition among firms is not desirable for them in which form of competition?

Accepted Answer

The answer of Because there are few sellers,price competition among...

Question 11

The form of competition in which many sellers compete with their products on a substitutable basis within a price range is called

Accepted Answer

The description in the question is characteristic of monopolistic competition, in which many sellers offer products that are similar but not identical, and therefore have some degree of control over the price they charge. Pure competition would involve identical products with no control over price, while oligopoly and monopoly involve a small number of dominant sellers with varying degrees of control over price. Cross-market competition is not a recognized term in economics.

Question 12

Since ___________ is typically regulated by the state or federal government,marketing plays a relatively small role in this setting.

Accepted Answer

In a pure monopoly, there is only one seller in the market and the government usually regulates the prices and activities of the firm to protect consumers. Since the government is heavily involved in regulating the operations of a pure monopoly, marketing plays a relatively small role in this setting.

Question 13

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

Accepted Answer

In this scenario, there is only one provider, which means that it is a monopoly. However, the fact that the government regulates the firm shows that it is not a pure monopoly but a regulated or legal monopoly.

Question 14

Small businesses make up the majority of the competitive landscape for most businesses.There are approximately __________ small businesses in the United States.

Accepted Answer

According to the Small Business Administration, there are approximately 27 million small businesses in the United States.

Question 15

Agribusinesses that sell commodity products like wheat,rice,and grain are often in a __________ position with their competitors.

Accepted Answer

Agribusinesses that sell commodity products like wheat, rice, and grains are often in a situation of pure competition. In pure competition, there are many buyers and sellers, the products are homogeneous, and there is no control over the price. Therefore, agribusinesses cannot easily differentiate their products, face many competitors, and have no control over the pricing of their products.

Question 16

In 2012,the four major retailers of online music include the iTunes,Amazon,Napster,and Rhapsody.In terms of the form of competition,this industry is an example of a(n)__________.

Accepted Answer

The fact that there are only four major retailers indicates that this is an oligopoly, which is characterized by a small number of firms dominating the market.

Question 17

In marketing,the form of competition that occurs when only one firm sells the product is referred to as __________.

Accepted Answer

A pure monopoly occurs when only one firm sells a product, with no close substitutes available in the market. This gives the firm complete control over the price and supply of the product, as there is no competition to worry about.

Question 18

Boeing,Northrup Grumman,and Lockheed Martin control the vast majority of the U.S.defense contractor industry.In terms of the form of competition,this industry is an example of a(n)__________.

Accepted Answer

An oligopoly is a market structure in which a small number of large firms dominate the industry. In this case, Boeing, Northrup Grumman, and Lockheed Martin control the vast majority of the defense contractor industry, suggesting that it is an oligopoly. The other options are not applicable because a trilateral monopoly and monopoly involve only one or a few firms, and pure competition and monopolistic competition involve many smaller competitors with no dominant players.

Question 19

The U.S.Securities and Exchange Commission has designated just nine credit-rating agencies as "nationally recognized statistical rating organizations" (NRSROs),which include Moody's,Standard & Poor's,and Fitch Ratings.These agencies provide opinions on the creditworthiness of other entities and the financial obligations issued by them.Because so few companies can compete in it,the credit-rating industry would be considered a(n)

Accepted Answer

The fact that there are only nine major credit-rating agencies indicates that there are significant barriers to entry in the industry, making it an oligopoly.

Question 20

Small businesses employ __________ of all private sector employees.

Accepted Answer

The answer of Small businesses employ __________ of all private...

Quiz 3: Scanning the Marketing Environment, Ethical Behavior and Social Responsibility