Question 1

The economies of the world are connected and changes in one economy quickly affect others. One key reason for this is that:
A) The amount of international trade is decreasing.
B) The amount of international trade is difficult to forecast.
C) The amount of international trade is increasing.
D) The amount of international trade is unstable.
E) The amount of international trade is stable.

Accepted Answer

The economies of the world are connected and changes in one economy quickly affect others. One reason for this is that the amount of international trade is increasing.

Question 2

The economic environment
A) of an individual country has little effect on other countries.
B) refers to the application of science to convert resources to output.
C) includes changes in interest rates and inflation.
D) has little impact on an organization's marketing strategy.
E) does not change rapidly.

Accepted Answer

Changes in the economy are often accompanied by changes in the interest rate and inflation.

Question 3

The scientific way in which an economy's resources are converted to output is part of the _______________ environment.
A) competitive
B) economic
C) political
D) technological
E) social

Accepted Answer

Technology is the application of science to convert an economy's resources to output.

Question 4

The economic environment:
A) Has no relationship to the technological environment.
B) Is not affected by the way all of the parts of the macro-marketing system interact.
C) Is the same from country to country.
D) Can change very rapidly.
E) Never requires marketing managers to make immediate changes in strategy.

Accepted Answer

The economic environment can, and does, change quite rapidly.

Question 5

Low consumer spending and a lack of adequate financing are conditions that arise mostly due to factors in:
A) the competitive environment.
B) the cultural and social environment.
C) the technological environment.
D) the political environment.
E) the economic environment.

Accepted Answer

Marketers that evaluate opportunities during an economic downturn can expect depressed consumer spending and a potential lack of financing from lending institutions. These considerations arise from within the economic environment.

Question 6

Which of the following demonstrates how the technological environment is changing the way marketers promote products?
A) Marketing aimed at youth is increasingly regulated by governments.
B) Search engines match consumer searches with relevant banner ads.
C) Marketers make routine claims that products are eco-friendly.
D) Manufacturers partner with local retailers to buy ads that feature both firms.
E) New laws regulate consumer privacy.

Accepted Answer

Technology has led to the increasing use of online advertising, most notably search-related advertising.

Question 7

A ________ is an organized table that compares the strengths and weaknesses of a company with those of its competitive rivals.
A) competitive advantage
B) competitor matrix
C) insight table
D) positioning graph
E) competitor analysis

Accepted Answer

A useful tool for organizing the competitor analysis is a competitor matrix, an organized table that compares the strengths and weaknesses of a company with those of its competitive rivals.

Question 8

Interest rates
A) often change with changes in the economy.
B) affect consumer markets, but not business customers.
C) usually decrease during periods of inflation.
D) do not directly affect the total price borrowers must pay for loans.
E) don't affect the prices buyers pay.

Accepted Answer

Changes in the economy are often accompanied by changes in the interest rate.

Question 9

A marketing manager may ethically and actively seek information about current or potential competitors by
A) searching a firm's public website.
B) waiting at a landfill for competitors' trash to find copies of confidential company reports.
C) using computer "hackers" to break into a competitor's computer network.
D) hiring people from competing firms and then asking them confidential information about the competitor.
E) spying on competitors to obtain trade secrets.

Accepted Answer

A firm that puts all of its marketing information on a public website for customers also makes it readily available to competitors.

Question 10

________ are the firms that are considered to be the organization's closest challengers.
A) Aggressive rivals
B) Competitive rivals
C) Direct rivals
D) Indirect rivals
E) Passive rivals

Accepted Answer

Competitive rivals are firms that will be the closest competitors.

Question 11

A change in the _____ environment can affect consumer purchases of homes, cars, and other items usually bought on credit.
A) legal
B) political
C) social/cultural
D) technological
E) economic

Accepted Answer

Changes in the economy are often accompanied by changes in the interest rate. It also affects consumer purchases of homes, cars, and other items usually bought on credit.

Question 12

The _____ refers to how much one country's money is worth in another country's money.
A) monetary value
B) exchange rate
C) dollar value
D) net worth
E) purchasing power

Accepted Answer

Exchange rate is how much one country's money is worth in another country's money.

Question 13

Increased demand for new homes due to low interest rates is an example of the impact of the ___________ environment.
A) technological
B) cultural
C) competitive
D) economic
E) social

Accepted Answer

In the economic environment, interest rates directly affect the total price borrowers must pay for products. So the interest rate affects when, and if, they will buy.

Question 14

A firm that is unable to obtain financing to manufacture new products is likely encountering negative pressures from:
A) the competitive environment.
B) the technological environment.
C) the economic environment.
D) the political/legal environment.
E) the cultural/social environment.

Accepted Answer

While marketers encounter many challenges from the external market environment, the inability of firms to acquire financing is usually due to forces in the economic environment.

Question 15

The marketing manager for a financial services firm knows that customer preferences for mutual funds and bond accounts will differ depending on the current interest rate. She must plan her offerings with the _____ environment in mind.
A) economic
B) social
C) technological
D) cultural
E) legal

Accepted Answer

In the economic environment, interest rates directly affect the total price borrowers must pay for products. So the interest rate affects when, and if, they will buy.

Question 16

Regarding the competitive environment:
A) It is easy to find environments that are "competitor-free."
B) Monopoly situations are more common than are situations characterized by monopolistic competition.
C) "Competitive rivals" are a firm's closest competitors.
D) Competitor analysis should begin with an identification of competitors from the viewpoint of the manager, not the consumer.

Accepted Answer

Competitive rivals are firms that will be the closest competitors.

Question 17

When a local bank in Kansas City makes loans to its small business customers, it charges them an interest rate for borrowing money. Interest rates are part of the ____________ environment.
A) cultural and social
B) economic
C) legal
D) political
E) competitive

Accepted Answer

Changes in the economy are often accompanied by changes in the interest rate. This is part of the economic environment.

Question 18

Swanson Beverages, Inc., is using ______________ to compare the strengths and weaknesses of its current target market and marketing mix with what its competitors are doing (or are likely to do).
A) clustering
B) scenario analysis
C) brand positioning
D) marketing mix review
E) competitor analysis

Accepted Answer

Competitor analysis is an organized approach for evaluating the strengths and weaknesses of current or potential competitors' marketing strategies.

Question 19

Rising costs and inflation are part of the uncontrollable ______________ environment.
A) technological
B) economic
C) competitive
D) legal
E) cultural and social

Accepted Answer

Rising costs and inflation are part of the economic environment.

Question 20

X-Brand Bikes, a manufacturer of off-road bicycles, carefully developed a strategy for moving into South America. The strategy had poor results after interest rates and inflation rose rapidly in most of its South American markets, demonstrating the influence of the _____ on marketing strategy.
A) economic environment
B) technological environment
C) social environment
D) legal environment
E) political environment

Accepted Answer

Interest rates and inflation are part of the economic environment.

Quiz 3: Evaluating Opportunities in the Changing Market Environment

The economies of the world are connected and changes in one economy quickly affect others. One key reason for this is that:

The economic environment

The scientific way in which an economy's resources are converted to output is part of the _______________ environment.

The economic environment:

Low consumer spending and a lack of adequate financing are conditions that arise mostly due to factors in:

Which of the following demonstrates how the technological environment is changing the way marketers promote products?

A ________ is an organized table that compares the strengths and weaknesses of a company with those of its competitive rivals.

Interest rates

A marketing manager may ethically and actively seek information about current or potential competitors by

________ are the firms that are considered to be the organization's closest challengers.

A change in the _____ environment can affect consumer purchases of homes, cars, and other items usually bought on credit.

The _____ refers to how much one country's money is worth in another country's money.

Increased demand for new homes due to low interest rates is an example of the impact of the ___________ environment.

A firm that is unable to obtain financing to manufacture new products is likely encountering negative pressures from:

The marketing manager for a financial services firm knows that customer preferences for mutual funds and bond accounts will differ depending on the current interest rate. She must plan her offerings with the _____ environment in mind.

Regarding the competitive environment:

When a local bank in Kansas City makes loans to its small business customers, it charges them an interest rate for borrowing money. Interest rates are part of the ____________ environment.

Swanson Beverages, Inc., is using ______________ to compare the strengths and weaknesses of its current target market and marketing mix with what its competitors are doing (or are likely to do) .

Rising costs and inflation are part of the uncontrollable ______________ environment.

X-Brand Bikes, a manufacturer of off-road bicycles, carefully developed a strategy for moving into South America. The strategy had poor results after interest rates and inflation rose rapidly in most of its South American markets, demonstrating the influence of the _____ on marketing strategy.