CH 3

Question 1

two or more businesses offering the same products or services to the same target market
Ex: Apple and Samsung, Coke and Pepsi

Answer 1

Direct competition

Question 2

serving the same customer needs as another company but offers different products or services.
occurs when products provide alternative solutions to the same market.
Ex: -chocolate and cookies. both sweets
-coffee shop and juice bar. both bevs

Answer 2

Indirect competition

Question 3

External Factors affecting the marketing environment

Answer 3

-Economic
-Demographic
-Sociocultural
-Political
-Legal
-Technological

Question 4

the rate of increase in prices over a given period of time

Answer 4

Inflation

Question 5

the total market value of all the finished goods and services produced within a country’s borders in a specific time period.

Answer 5

Gross Domestic Product(GDP)

Question 6

Age, gender, education, ethnicity

Answer 6

Demographic Factors

Question 7

feelings, values, beliefs, behaviors, attitudes, and interactions

Answer 7

Sociocultural Factors

Question 8

government policies, leadership, and change, foreign trade policies, ect.

Answer 8

Political Factors

Question 9

health and safety, equal opportunities, advertising standards, consumer rights and laws, ect

To ensure businesses compete fairly underlined (FTC).

Answer 9

Legal Factors

Question 10

Influences how consumers satisfy needs and wants.

Smart Phones, Drone delivery

Walgreen delivery/Amazon delivery videos

Answer 10

Technology Factors

Question 11

A sudden drop in the average consumer income would be an example of which external force affecting the marketing environment?

legal
political
technological
economic
sociocultural

Answer 11

economic

Question 12

Currently, females account for what percentage of all consumer purchases in the United States?

Answer 12

85 percent

Question 13

Monette needed to pick up some yogurt from the store. She was surprised to find that the store was out of her usual brand, Chobani. Rather than go to another store, she decided to buy a carton of Yoplait yogurt instead. In this example, Yoplait represents

indirect competition.
lateral competition.
an unsought good.
a disposable product.
a substitute product.

Answer 13

a substitute product.

Question 14

The consumer protection agency for the United States is the ____

Answer 14

Federal Trade Commission

Question 15

The generation of children born between 1946 and 1964 is retiring at a rate of 10,000 per day. What is the name of this generational cohort?

Answer 15

Baby boomers

Question 16

A sudden drop in the average consumer income would be an example of which external force affecting the marketing environment?

legal
political
economic
sociocultural
technological

Answer 16

economic

Question 17

Marketers use descriptions of consumers based on characteristics such as age, gender, ethnicity, and education level to refine their target markets. This is referred to as

Answer 17

Demographics

Question 18

A measure of how optimistic consumers are about the overall state of the economy and their own personal finances is referred to as

consumer expectations.
consumer confidence.
purchasing power.
purchasing confidence.
market confidence.

Answer 18

consumer confidence.

Question 19

You are shopping with a good friend. While looking at a jacket, she comments that she never buys clothes produced in Vietnam because the use of cheap overseas labor is harmful to U.S. textile workers. This type of belief is known as

consumer ethnocentrism.
cultural fit.
international protectionism.
xenophobia.
sociocultural bias.

Answer 19

consumer ethnocentrism.

Question 20

Marketers are particularly interested in targeting Baby Boomers because they typically possess which two things that marketing professionals seek?

-higher paying jobs and higher education levels
-higher education levels and disposable income
-higher paying jobs and greater interest in leisure activities
-greater purchasing power and more consumer confidence
-disposable income and free time

Answer 20

disposable income and free time

Question 21

Which acronym stands for the international organization that regulates trade among participating nations and helps importers and exporters conduct their business?

Answer 21

WTO

Question 22

What are the three sources of funding that nonprofit organizations rely on?

Answer 22

grants, special events, and individual donations

Question 23

Which ethnic group population in the United States is expected to almost double by the year 2050?

Answer 23

Hispanic

Question 24

A company’s ability to meet its marketing goals is affected by political, economic, demographic, sociocultural, technological, and legal factors. This is known as

Answer 24

The marketing environment

Question 25

Which regulation was passed to eliminate monopolies and guarantee competition?

Answer 25

the Sherman Antitrust Act (1890)

Question 26

Covers how a country's total GDP is distributed amongst its population. Provides a country’s purchasing power.

Answer 26

Income Distribution

Question 27

A preference for domestic products on the basis of nationalistic feelings Immoral to purchase foreign-made goods and services. This belief is on the rise in the US, Germany, France, and China

Answer 27

Consumer Ethnocentrism