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2331 Final Exam Questions Chapter 2 - The Marketing Environment, Social Responsibility, and Ethics 1. Dan Strong is a personal trainer who believes there is an underserved niche in overweight teenagers who want to get fit. If he goes after this segment by designing an appropriate marketing mix, which of the following terms describes this group? a. target market b. buying centre c. aggregated unit d. consumer cluster 2. Tony works for a company that is having a hard time competing in the market. Tony really wants to stand out with in his organization to further his career in marketing. Which of the following strategies should Tony pursue to better understand the macro environment around his company? a. Tony should study and analyze the competition to understand how his company differs from everyone else so that he can pinpoint the fallout of his company. b. Tony should study and analyze the technological environment that is used to understand how his company differs from everyone else so that he can pinpoint the fallout of his company. c. Tony should study and analyze the consumer to understand how his company differs from everyone else so that he can pinpoint the fallout of his company. d. Tony should study and analyze the social environment that is used to understand how his company differs from everyone else so that he can pinpoint the fallout of his company. 3. When Universal Studios Japan opened, health inspectors discovered they had piped industrial- use water not suitable for drinking into the drinking fountains. The problem was costly to repair. In this example, which of the following factors are responsible for the repair costs? a. social factors b. economic factors c. political and regulatory factors d. cultural factors Page 1 of 22 4. Martha visits a department store and discovers that a box of exotic candles will cost her 10 percent more than what she had paid six months ago. The increase in prices is same across the country. Which of the following best describes the situation? a. She will have immediate purchasing power if she had a pay raise to match the inflation. b. She has to pay twelve percent more than what she paid last month. c. The departmental store is trying to earn profits by increasing the prices of its goods. d. The candles' subjective value increases with the increase in inflation. 5. Sally wants to buy a Louis Vuitton bag. What is the most important factor that marketers need to know about Sally? a. Sally’s education b. Sally’s willingness to buy c. Sally’s ability to buy d. Sally’s income level 6. China’s new 5 percent tax on disposable wooden chopsticks has been praised by environmentalists. Which of the following factors of the external environment of restaurant owners in China are influenced by this price increase? a. economic factors b. technological factors c. demographic factors d. social factors 7. When planning marketing strategies during times of recession, marketers must be aware that recession causes consumers to do which of the following? a. to put more money into savings accounts because prices are too high b. to consume more meals away from home c. to buy in small quantities until inflation is over d. to decrease their brand loyalty to products they have traditionally used 8. James lost his job in garment sales due to falling customer orders in Canada. Most business sectors have been hit by falling demand and low consumer confidence. Which economic trend is Canada currently experiencing? a. stagflation b. inflation c. recession d. depression Page 2 of 22 9.

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