Q&A Hero

Q: What is the difference between a patent and a copyright? Digital technology has required what additional recent legislation?

Q: Explain the difference(s) between the Sherman Antitrust Act, the Clayton Act, and the Robinson-Patman Act, all of which were enacted to protect competition.

Q: There are only three major recording labels in the world - Sony Music Entertainment, Time-Warner's Warner Music Group, and GE's Universal Music Group. They are responsible for the vast majority of music recordings that are made. Harry says that these three music companies operate as an oligopoly. Maryanne says that they operate as monopolistic competition. Explain how each came to his or her conclusion. Who is correct?

Q: Income used to buy luxury items such as a Cunard cruise is referred to as __________.A. gross incomeB. disposable incomeC. surplus incomeD. wealth incomeE. discretionary income

Q: Explain marketspace and its relevance for marketing.

Q: Discretionary income refers toA. the money deducted from a person's paycheck to pay for federal, state, and local taxes.B. the total amount of money made by a single individual during his or her lifetime.C. the money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation.D. the money that is spent for necessities or charitable causes that is exempt from taxation.E. the money that remains after paying for taxes and necessities.

Q: During a recessionary period, which of the following economic behavior would be expected?A. Consumer spending would decrease.B. Consumer use of credit would increase.C. Taxes would increase nationally.D. Property values would jump dramatically.E. Consumers would use the majority of their discretionary income on groceries.

Q: Explain the trends in the racial and ethnic composition of the U.S. how marketers can use this information.

Q: The recent large increase in __________ has caused consumers to adjust their spending in other categories.A. automobile pricesB. gasoline pricesC. interest ratesD. consumer confidenceE. property values

Q: Describe the three generational cohorts that are of interest to marketers today.

Q: If taxes rise at a faster rate than incomes, consumers willA. have less disposable income and try to economize.B. feel more confident in the government and therefore spend more money.C. use cash for purchases such as a vacation.D. recognize that it is the perfect opportunity to buy a car or other expensive products on credit.E. react by voting for all incumbent members of Congress.

Q: Give an example of how each of the five environmental forces can impact an organization's marketing environment.

Q: Disposable income refers toA. the money that remains before paying for taxes and necessities.B. the money deducted from a person's paycheck to pay for federal, state, and local taxes.C. the total amount of money made by a single individual during his or her lifetime.D. the money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation.E. the money that is spent for necessities or charitable causes that is exempt from taxation.

Q: Figure 3-1Using Figure 3-1 above, identify and explain the five environmental forces (A, B, C, D, and E) that affect an organization.

Q: Gross income refers toA. the money that remains after paying for taxes and necessities.B. the money deducted from a person's paycheck to pay for federal, state, and local taxes.C. the money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation.D. the total amount of money made by a single individual during his or her lifetime.E. the total amount of money made in one year by a person, household, or family unit.

Q: Toyota employs all of the following principles and practices as part of The Toyota Way business philosophy EXCEPT:A. continuously improve business processes and products.B. empower individuals and teams.C. respect people.D. build trust.E. provide personalized and customized products.

Q: Which of the following statements about sustainable development is most accurate?A. A company that always makes its furniture from rare tropical woods is practicing sustainable development.B. Currently, sustainable development is a luxury that only large multinational companies can engage in.C. Sustainable development is achieved when a firm's sales growth rate increases an average of 1-2% per year for a period of at least five years.D. A company that uses overseas child laborers to manufacturer its products to reduce costs does not practice sustainable development.E. Unfortunately, only a small number of consumers care whether a company practices sustainable development.

Q: Sustainable development refers toA. placing restraints on a company's growth until all ancillary support services are in place to ensure a new venture's success.B. global economies that are slowly moving from an agrarian-base to an industrial base.C. adhering to worldwide standards for environmental quality and green marketing practices.D. marketing efforts to produce, promote, and reclaim environmentally sensitive products.E. conducting business in a way that protects the natural environment while making economic progress.

Q: The College Board reports that since 2000, college tuition and fees have increased by 146 percent whereas family incomes have risen less than 19 percent. This is an example of a(n) __________ condition.A. deflationaryB. recessionaryC. repressiveD. inflationaryE. depressive

Q: Which of the following statements concerning cause marketing is most accurate?A. The vast majority of consumers say they will switch to a brand that supports a good cause, provided the price and quality of the brands are equal.B. The profits generated by cause marketing are usually based in "goodwill" rather than actual revenue.C. The positive effects of cause marketing are significant during the promotion, but they lose their benefit almost immediately after the promotion runs its course.D. Cause marketing rarely creates a point of difference for the firm that engages in this marketing practice.E. Women are much more suspicious about the sincerity of cause marketing programs than men; therefore, their contributions are significantly less.

Q: American Express Company pioneered cause marketing when it sponsored the renovation ofA. Carnegie Hall.B. Madison Square Garden.C. Liberty Hall.D. the Statue of Liberty.E. Radio City Music Hall.

Q: Oil prices have an impact on transportation costs for many types of products. Should oil prices change, the price consumers pay for products often is adjusted accordingly. Changing oil prices would be an example of a(n) __________ force.A. socialB. economicC. technologicalD. competitiveE. regulatory

Q: During its Drive to End Hunger campaign to help fight hunger among the nearly nine million older Americans, Quaker State donated 25 cents per bottle sold of five-quart specially-marked oil products to the AARP Foundation that works on this issue. This is an example ofA. philanthropic marketing.B. cause marketing.C. societal marketing.D. public relations marketing.E. transactional marketing.

Q: All of the following are economic indicators EXCEPT:A. inflation.B. barriers to entry.C. unemployment.D. GDP.E. deflation.

Q: The economy is defined asA. the independent financial factors that are not affected by changes in government spending.B. the purchase of the highest quality product for the lowest possible price.C. the production, distribution, and consumption of products, services, and ideas by households.D. the income, expenditures, and resources that affect the cost of running a business and household.E. the forces within a manufacturer's control that affect the demand and supply its offerings.

Q: Avon has donated millions toward breast cancer research. One hundred percent of net profits One from the sale of a bag designed by Marimekko exclusively for the Avon Breast Cancer Crusade were donated to the crusade. This is an example ofA. philanthropic marketing.B. corporate altruism.C. the marketing concept.D. green marketing.E. cause marketing.

Q: Pampers AdConsider the Pampers ad above. Since 2006, Procter & Gamble has developed a successful brand campaign that includes the Pampers 1 Pack 1 Vaccine initiative, which has protected 100 million women and their babies against maternal and neonatal tetanus. This is an example ofA. philanthropic marketing.B. corporate altruism.C. the marketing concept.D. green marketing.E. cause marketing.

Q: Procter & Gamble supports disadvantaged youth and provides relief after disasters strike when its customers purchase selected company products. This is an example ofA. cause marketing.B. philanthropic marketing.C. green marketing.D. public relations.E. societal promotions.

Q: A key difference between cause marketing and a charitable contribution isA. a charitable contribution provides an organization with a lower tax deduction.B. there is no limit to the amount of charitable deductions a firm can make, but a firm is limited to the number of cause marketing efforts it can make during a fiscal year.C. charitable donations are contributed at the sole discretion of the firm; cause marketing is the amount is directly affected by consumers' purchases.D. cause marketing is generally linked to public causes and concerns while straight charitable contributions are generally given to private institutions.E. there is essentially no difference between a charitable contribution and cause marketing.

Q: Which of the following is a commonly held value in the United States?A. the importance of rank and status.B. the importance of tradition.C. belief in fate.D. competition.E. acceptance of birthright.

Q: Cause marketing refers toA. when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products.B. the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.C. marketing services provided at little or no cost for the purpose of promoting or supporting a worthy cause.D. marketing efforts to produce, promote, and reclaim environmentally sensitive products.E. when marketing actions that took place actually caused more harm than good.

Q: Which one of the following is a value that would be commonly held in the United States today?A. individualismB. traditionC. group welfareD. nostalgiaE. acceptance of birthright

Q: Culture refers to theA. moral and ethical beliefs of a family passed down from generation to generation.B. set of values, ideas, and attitudes that are learned and shared among the members of a group.C. pastimes associated with the fine arts, such as ballet, music, and theater.D. standard or pattern of behaviors that is typical or expected of a group.E. description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.

Q: Which of the following is an example of green marketing?A. McDonald's adding apple snacks to its Happy Meals targeted at children.B. Lowe's and Home Depot discontinuing the sale of lumber and other wood products.C. Levi-Strauss marketing prewashed jeans towards a tween segment.D. Joe's Lawn Service offering a special spring cleanup promotion.E. Walmart implementing buying practices that encourage it suppliers to use containers and packing made from corn, not oil-based resins.

Q: Levi Strauss & Co. uses 8 recycled plastic bottles, which comprise 20 percent of the content in each pair of its Waste< Less jeans. This is an example ofA. proactive marketing.B. consumerism.C. an ecological code of ethics.D. green marketing.E. cause marketing.

Q: Green marketing refers toA. the purchasing of products from producers whose farming practices are Fair Trade certified.B. the marketing efforts taken by new and smaller companies that lack both the experience and resources of their major competitors.C. the marketing efforts to produce, promote, and reclaim environmentally sensitive products.D. the marketing of products that have in no way been altered or reprocessed by artificial means.E. the marketing of those products made exclusively from recycled materials.

Q: All of the following statements are true EXCEPT:A. LEED stands for Leadership in Energy and Environmental Design.B. today's college graduates now seek green jobs that involve some aspect of social responsibility.C. colleges of business have yet to establish sustainability course electives, case studies, or links to organizations that expose students to socially responsibility concepts and initiatives.D. many students want to be involved with organizations like Net Impact to use business to improve the world.E. millennials want to make a difference by making the world a better place.

Q: Triple-bottom line refers toA. the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.B. the obligations an organization has to those who can affect achievement of its sales, profit, and market share objectives simultaneously.C. the recognition of the need for organizations to be responsible simultaneously to shareholders, employees, and customers.D. the obligations an organization has to practice profit, stakeholder, and societal responsibility simultaneously.E. three different financial statements prepared in three different formats: one for governmental regulators, one for shareholders, and one for internal use.

Q: Members of Generation Y, also known as __________, are interested in sustainability in order to make the world a better place.A. activistsB. sustainersC. progressivesD. reformersE. millennials

Q: The obligation organizations have to the preservation of ecological environment and to the general public is referred to as __________.A. social responsibilityB. stakeholder responsibilityC. benefit marketingD. societal responsibilityE. profit responsibility

Q: Galaxy Phone Ad Which generational cohort is the Windows Phone ad above most likely trying to reach? A. Generation X B. baby boomers C. Generation Z D. baby busters E. Generation Y

Q: Societal responsibility refers toA. the obligation that organizations have to the preservation of ecological environment and the general public.B. the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit.C. the view that an organization has an obligation to those who can affect the achievement of its objectives.D. the duty of a firm to maximize profits for its owners or stockholders.E. the idea that organizations are part of a larger society and are accountable to that society for their actions.

Q: When compared to Generation X, members of Generation Y are most likely to influenceA. children's designer clothing lines.B. health care and insurance.C. all forms of communication.D. retirement plans.E. automobile design.

Q: Toyota Motor Corporation executives were widely criticized for their failure to practice __________ when selected Toyota brands were linked to sticky gas pedals, which can lead to sudden acceleration problems. The company recalled over 9 million cars worldwide under pressure from the National Highway Traffic Safety Administration and thousands of consumer complaints. Toyota's handling of the situation resulted in accidents and ultimately lower sales, which affected Toyota consumers, employees, suppliers, and dealers.A. moral idealismB. stakeholder responsibilityC. utilitarianismD. cause marketingE. profit responsibility

Q: Members of Generation Y are most likely to influenceA. children's designer clothing lines.B. health care and insurance.C. retirement plans.D. video games.E. automobile design.

Q: The generation of children born between 1977 and 1994 is sometimes referred to asA. echo busters.B. baby busters.C. the lost generation.D. the baby boomerang.E. the millennials.

Q: The groups primarily served by a firm exhibiting stakeholder responsibility includeA. the general public, public interest groups, and the environment.B. consumers, employees, suppliers, and distributors.C. owners and stockholders.D. the general public, owners, and stockholders.E. government, owners, and stockholders.

Q: Generation Y is sometimes referred to asA. echo-boomers.B. baby boomers.C. baby busters.D. the downtrodden generation.E. Generation 25.

Q: Stakeholder responsibility refers toA. the view that an organization has an obligation to those who can affect the achievement of its objectives.B. the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit.C. the duty of a firm to maximize profits for its owners or stockholders.D. the concept that no expansion or additional research and development will occur until a company is making a profit.E. the idea that organizations are part of a larger society and are accountable to that society for their actions.

Q: Americans born between 1977 and 1994 are referred to as __________. A. Generation X B. baby boomers C. Generation Y D. baby busters E. Generation Z

Q: Lufthansa Airlines Ad Which generational cohort, which is now the largest cohort in terms of business travel, is the Lufthansa Airlines ad above most likely trying to reach? A. Generation X B. baby boomers C. Generation Z D. baby busters E. Generation Y

Q: Who said the following quote: "There is one and only one social responsibility of business - to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud."?A. Federal Reserve Chairman Ben BernankeB. Nobel Laureate Paul KrugmanC. President Barack ObamaD. Nobel Laureate Milton FriedmanE. President Ronald Reagan

Q: Generation XA. is the least healthy generation since the 1940s.B. accounts for the largest amount of consumer spending.C. is the largest segment of business travelers.D. is interested in distinctive, memorable, and personal experiences.E. includes younger members known as millennials.

Q: The groups primarily served by a firm exhibiting profit responsibility includeA. the general public, public interest groups, and the environment.B. consumers, employees, and supplier/distributors.C. owners and stockholders.D. the general public and competitors.E. state and federal government.

Q: Generation X consumers areA. likely to rely on others.B. authoritative decision-makers.C. very prone to extravagance.D. generally supportive of racial and ethnic diversity.E. poorly educated.

Q: The name given to the generational cohort who are described as self-reliant, supportive of racial and ethnic diversity, and better educated than previous generations is __________.A. Generation ZB. Generation YC. millennialsD. Generation XE. baby boomers

Q: Profit responsibility refers toA. the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit.B. the view that an organization has an obligation to those who can affect the achievement of its objectives.C. the concept that no expansion or additional research and development will occur until a company is making a profit.D. the idea that organizations are part of a larger society and are accountable to that society for their actions.E. the duty of a firm to maximize profits for its owners or stockholders.

Q: The generational cohort known as __________ was born during the baby bust era when the number of children born each year was declining.A. Generation ZB. Generation YC. millennialsD. Generation XE. baby boomers

Q: Profit responsibility, societal responsibility, and stakeholder responsibility are three concepts ofA. cause marketing.B. moral idealism.C. social responsibility.D. utilitarianism.E. green marketing.

Q: The 50 million people of the population born between 1965 and 1976, also called the __________, refers to Generation X.A. Generation YB. baby bustC. millennialsD. baby boomersE. Generation Z

Q: Recently, Gap Inc. ended its relationship with 23 foreign production facilities due to code violations. Several closings occurred because of the use of child labor. In response to these events, the Gap created a large team whose purpose is to travel worldwide to ensure compliance with its Code of Vendor Conduct. This is an example ofA. cause marketing.B. profit responsibility.C. utilitarianism.D. moral idealism.E. social responsibility.

Q: Generation X is the label often given toA. persons born between 1965 and 1976.B. persons 65 years old and older.C. those who survived the great depression.D. the "greatest generation" born between the baby boomer generation and their parents that were called Generation W, the World War II generation.E. those people who were born since the millennium.

Q: Which of the following statements about social responsibility is most accurate?A. The three concepts of social responsibility are economic responsibility, internal social responsibility, and external social responsibility.B. Organizations are part of a larger society and are accountable to that society for their actions.C. Societal responsibility focuses on the obligations an organization has to its customers, employees, suppliers, and distributors.D. The duty of an organization is most easily understood at the societal responsibility level.E. Social responsibility cannot be taught; it is an innate outgrowth of a person's moral and ethical belief system.

Q: Social responsibility refers toA. a personal moral philosophy that focuses on the greatest good for the greatest number by assessing the costs and benefits of the consequences of ethical behavior.B. a democratic consensus of moral principles and laws that govern the behavior of individuals based on legislation adopted at the federal, state, and local levels.C. a societal moral philosophy based on the Golden Rule of the Judeo-Christian ethic found in the U.S. Constitution's Bill of Rights.D. the view that organizations are part of a larger society and are accountable to that society for their actions.E. a personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome.

Q: Prudential AdThe Prudential ad shown above is targeted at which generational cohort?A. echo-boomersB. Generation XersC. Generation YersD. baby boomersE. baby busters

Q: Cosco, the world's largest children's products company, recently developed a high chair that could be used as an infant feeding seat, a youth chair, a play chair, a booster chair, and when reclined, an infant bed. It sold for $49. Cosco rushed the chair into production before it was properly safety-tested. When some children were injured using this chair, Cosco denied culpability. The firm said that only a few consumers had trouble with the chair and these probably didn't assemble them correctly. Most consumers were very satisfied with the chair and had no problems. Cosco's actions exemplify which of the following philosophies?A. existentialismB. moral idealismC. communismD. socialismE. utilitarianism

Q: The personal moral philosophy of utilitarianism underlies the economic tenets ofA. existentialism.B. moral idealism.C. communism.D. socialism.E. capitalism.

Q: Which of the following has currently affects the baby boomer generation, and thus those that market to them, in a significant way?A. They are beginning to have children.B. They are getting their high school and college educations.C. They are currently retiring or nearing retirement age.D. They are just being born.E. They are beginning their primary school educations.

Q: All of the following factors contribute significantly to the rate of change of a country's population (such as the U.S.) EXCEPT:A. life expectancy (the average number of years a population lives from birth).B. immigration (the number of people who enter a country for the purpose of permanent residence).C. population density (defined as the total number of people per square mile/kilometer).D. birth rate (the number of births during a specified time period).E. death rate (the number of deaths during a specified time period).

Q: By 2030, the U.S. population is expected to exceedA. 273 million.B. 314 million.C. 323 million.D. 358 million.E. 414 million.

Q: 3M Scotchgard Photo Consider the 3M Scotchgard photo above. 3M voluntarily stopped the production of a chemical used as an ingredient in its Scotchgard fabric protector because minute amounts were found in the tissues of both animals and humans and the company feared there could be health affects at high levels. The moral philosophy that guided 3M in making this decision was __________. A. moral idealism B. utilitarianism C. green marketing D. stringent laws E. cause marketing

Q: Generally, the U.S. population is becomingA. smaller, younger, and more diverse.B. smaller, older, and more diverse.C. larger, younger, and less diverse.D. larger, younger, and more diverse.E. larger, older, and more diverse.

Q: Why did 3M phase out the production of a chemical used as an ingredient in its Scotchgard fabric protector?A. New advances in fabric manufacturing, such as dirt repellant fibers, made the need for the product obsolete.B. The product accidentally violated the patent rights of a competitor.C. Traces of the potentially harmful chemical were found in humans, so the product was voluntarily halted.D. New governmental legislation banned the production of one of the product's key component chemicals.E. 3M developed a new product that didn't contain this chemical and was less costly to produce, resulting in a significantly higher profit margin.

Q: Which of the following demographic trends has significant implications to global marketers?A. the declining populations in Latin American countriesB. the size of the markets in India and ChinaC. the tripling of the population of consumers under 40 years oldD. the decreasing interest in entrepreneurship in developing countriesE. the lack of savings of elderly populations in developed countries

Q: Moral idealism refers toA. a personal moral philosophy that focuses on the greatest good for the greatest number by assessing the costs and benefits of the consequences of ethical behavior.B. a democratic consensus of moral principles and laws that govern the behavior of individuals based on legislation adopted at the federal, state, and local levels.C. a societal moral philosophy based on the Golden Rule of the Judeo-Christian ethic embodied in the U.S. Constitution's Bill of Rights.D. a formal statement of ethical principles and rules of conduct.E. a personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome.

Q: Moral idealism refers to a personal moral philosophy thatA. believes that good will always triumph over evil.B. follows the "Golden Rule," which is "You should treat others as you would like others to treat you."C. all human beings are basically good.D. considers individual rights or duties as universal, regardless of the outcome.E. believes in "the greatest good for the greatest number."

Q: Projections show that the population is __________.A. growing in most developed countriesB. declining in most developing countriesC. decreasing in AfricaD. increasing in AsiaE. decreasing in Latin America

Q: The population explosion has occurredA. primarily in the developing countries of Latin America, Asia, and Africa.B. evenly throughout the world.C. primarily in the United States due to high birth rates and immigration.D. primarily in the countries of the European Union due to high birth rates and immigration.E. primarily in developed countries due to better economic, infrastructure, and healthcare conditions.

Q: The term that describes the change in the growth of the world's population is called the __________.A. population contractionB. population inversionC. population migrationD. population explosionE. population eruption

Q: By 2050, the world's population is expected to be __________.A. 5.0 billionB. 5.7 billionC. 6.1 billionD. 7.9 billionE. 9.6 billion