Marketing The Core 8th Edition by Roger Kerin - Test Bank

Marketing The Core 8th Edition By Roger Kerin –
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Marketing The Core 8th Edition By Roger Kerin – Test Bank

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Chapter 3 Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

1) Facebook has approximately what fraction of the world’s population as customers?
1. A) one-half
2. B) one-third
3. C) one-quarter
4. D) one-fifth
5. E) one-seventh

Answer: D
Explanation: Mark Zuckerberg started Facebook in his Harvard dorm room. His vision was not only
to be a company, but also to connect everyone in the world. Today, with 1.8 billion active users, or
one-quarter of the world’s population, Facebook is well on its way to accomplishing that vision.
Difficulty: 1 Easy
Topic: Environmental Influences on Marketing
Learning Objective: 03-01 Explain the purpose of environmental scanning.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

2) All of the following statements about the environmental forces that have influenced Facebook are
true except which?
1. A) The Federal Trade Commission (FTC) has a laissez-faire policy of not interfering with the
development and marketing of Facebook and other social media websites.
2. B) Technological advances in data storage, server speed, and software integration have made
Facebook increasingly fast and convenient.
3. C) Its rivalry with Google, Twitter, and Snapchat and new social networks encourage rapid expansion.
4. D) The cost of wireless connectivity and smartphones rapidly declined and Internet access expanded,
which increasingly made social networking affordable for more people.
5. E) People increasingly look for new ways to communicate, obtain information, and offer opinions.

Answer: A
Explanation: All five environmental forces have influenced Facebook. The legal and regulatory force
has resulted in the company’s obtaining trademark and patent rights to its name and many of its
features. It also responds to and provides guidelines for a variety of topics such as privacy, data
protection, protection of minors, and taxation. There is no mention of the FTC’s efforts regarding
Facebook, but in general the U.S. government agency has been involved in regulating the practices
of social networks.
Difficulty: 2 Medium
Bloom’s: Understand
3) Environmental scanning refers to
1. A) assessing any possible negative impact a firm’s activities might have on the local ecology.
2. B) continually acquiring information on events occurring outside the organization to identify and
interpret potential trends.
3. C) setting up a regular schedule to assess the performance of different divisions within a firm.
4. D) initiating an internal talent search to identify employees who can think “outside the box” to
generate solutions to marketing problems caused by changes in the marketing environment.
5. E) requiring all employees to spend time outside the office to avoid the “ivory tower” syndrome.

Answer: B
Explanation: Key term definition—environmental scanning.

Difficulty: 1 Easy
Bloom’s: Remember
4) The process of continually acquiring information on events occurring outside the organization to
identify and interpret potential trends is called
1. A) significant trend analysis.

2. B) organizational scanning.
3. C) environmental scanning.
4. D) a SWOT analysis.
5. E) marketing intelligence.

Answer: C
Explanation: Key term definition—environmental scanning.
Difficulty: 1 Easy
Bloom’s: Remember
5) Environmental trends arise from all of the following forces except which?

1. A) competitive
2. B) economic
3. C) regulatory
4. D) behavioral
5. E) social

Answer: D
Explanation: Environmental scanning trends come from social, economic, technological,

competitive, and regulatory forces. See Figure 3-1 in the textbook.
Difficulty: 1 Easy
Bloom’s: Remember
6) The purpose of environmental scanning is to
1. A) uncover causes of trends in the marketplace.

2. B) uncover trends in the workplace.
3. C) stop unhelpful trends in the marketplace, and speed helpful ones.
4. D) stop unhelpful trends in the workplace, and speed helpful ones.
5. E) identify and interpret trends in the marketplace.

Answer: E
Explanation: The purpose of environmental scanning is to identify and interpret trends in the
marketplace that affect the marketing activities of the firm. Environmental scanning is done through
continually acquiring information on events occurring outside the organization.

7) Which of the following statements regarding environmental scanning is the most accurate?
1. A) Environmental scanning changes the marketing environment.

2. B) Environmental scanning identifies and interprets potential trends.
3. C) Environmental scanning should be done about every five years.
4. D) Environmental scanning focuses primarily on ecological factors.
5. E) It is too costly and there is too much information generated from environmental scanning to make it
viable for small firms.

Answer: B
Explanation: The process of continually acquiring information on events occurring outside the
organization to identify and interpret potential trends is called environmental scanning.
8) A firm conducting an environmental scan of the marketplace might uncover key ________, such
as the growing popularity of brand advocates, the increasing application of virtual and augmented
reality, and the surging scrutiny regarding the collection and use of consumer data.
1. A) profits
2. B) responsibilities
3. C) idealisms
4. D) codes
5. E) trends

Answer: E
Explanation: A firm conducting an environmental scan of the marketplace might uncover key trends
such as the growing popularity of brand advocates, the increasing application of virtual and
augmented reality, and the surging scrutiny regarding the collection and use of consumer data.
These trends affect consumers and the organizations that serve them.
9) Starbucks entered a partnership with Keurig Green Mountain to sell K-Cup single-serving coffee
packs. Because Starbucks ________, it was prepared for this shift in its marketing environment.
1. A) optimized its distribution by adding local outlets in grocery stores

2. B) noticed the change in the demographics of coffee and tea drinkers in general
3. C) added more in-store displays
4. D) shifted funds from product development to advertising
5. E) tracked, as part of its ongoing environmental scanning activities, the percentage of households with
single cup brewers

Answer: E
Explanation: The increase in the percentage of households with single-cup brewers led to changes
in the marketplace, so Starbucks joined the move to single-serving coffee packs.
Difficulty: 3 Hard
Bloom’s: Apply
AACSB: Knowledge Application

10) As the director of marketing for a local hospital that specializes in caring for limited mobility
patients and related health issues, you must conduct an environmental scan to help create a five-
year marketing plan for the hospital. Which of the following environmental trends should you
consider to be the most important?
1. A) The number of people in the geographic area who are 65 years or older will increase by 23 percent
during the next five years.
2. B) Millennials are becoming increasingly important in the workplace.
3. C) The local community has seen a rise in dual-income households.
4. D) By the year 2025, robotics will play a major role in surgical procedures.
5. E) Twenty percent of the local population is of Hispanic origin, but that number is expected to grow
during the next decade.

Answer: A
Explanation: The most important trend is the rise of the 65 and older population in the community
because of the disproportionate demand for health care services among these consumers. This will
likely be an important target market for the hospital.
Difficulty: 3 Hard
Bloom’s: Apply
11) The Lemon Tree is a high-fashion boutique selling top-of-the-line women’s clothing and
accessories. The keys to its success include knowing customers’ changing tastes and providing
something different than other retailers. In addition, because of the high value of the merchandise,
The Lemon Tree’s management is investing in the use of computerized inventory controls and sales
order processing. The least important environmental force to The Lemon Tree at this time is likely to
be
1. A) economic.
2. B) competitive.
3. C) technological.
4. D) social.
5. E) regulatory.

Answer: E
Explanation: Only regulatory issues are not mentioned in the question.
Difficulty: 3 Hard
Bloom’s: Apply
12) Local newspaper readership has declined significantly in recent years. Not only are traditional
newspapers losing subscribers, they are also losing advertisers. To combat these trends, many
newspaper publishers now offer online versions of their printed newspapers. This is most likely a
response to which environmental force?
1. A) economic, since few can afford a newspaper today

2. B) competitive, resulting from new, smaller local newspapers that are flourishing
3. C) technological, since high-speed printing presses have become more easy to use
4. D) social, resulting from changing consumer preferences for information delivered online
5. E) regulatory, since the government provides tax incentives for paper-based products

Answer: D
Explanation: The declining readership of local newspapers (and magazines and books for that
matter) is a trend within the social environment. Many newspaper publishers believe that if they
provided online versions of their printed editions, they could reduce the decline in subscribers or
actually increase them since many now seek information in digital form.
Difficulty: 3 Hard
Bloom’s: Apply
13) A growing trend to “Buy American” may encourage U.S. automakers to increase political
pressure on Washington to pass legislation for more restrictive quotas on Japanese car imports. In
addition, a decline in the value of the U.S. dollar would be instrumental in Toyota’s decision to build
a manufacturing plant in the United States instead of continuing to export cars from Japan. If Toyota
builds the plant, its decision would reflect
1. A) a reactive strategy that would impact the competitive environmental force.

2. B) a proactive maneuver to manipulate and impact the social environmental force.
3. C) a positive result from regulatory and economic environmental forces.
4. D) a positive response to a technological environmental force.
5. E) a negative impact as a result of adverse competitive, regulatory, and technological environmental
forces.

Answer: C
Explanation: The identified examples represent regulatory and economic environmental forces that
are not controllable by Toyota but could positively influence its decision to build a plant in the United
States.
Difficulty: 3 Hard
Bloom’s: Apply

14) Many large consulting firms are beginning to sponsor “women-only” networking events. The
purpose of these events is to offer an opportunity for women in management to network with other
businesswomen, either as clients, mentors, or protégés. This is an example of which environmental
force?
1. A) social
2. B) economic
3. C) technological
4. D) competitive
5. E) regulatory

Answer: A
Explanation: There are increasing numbers of women in the workforce, a social environmental
trend. These events can help women moving up the corporate ladder become connected with other
women.
Difficulty: 3 Hard
Bloom’s: Apply
15) The Kansas state legislature recently banned the use of tanning beds by anyone under the age
of 18. This restriction would be an example of which environmental force?
1. A) social
2. B) economic
3. C) technological
4. D) competitive
5. E) regulatory

Answer: A
Explanation: Government regulation like the Kansas law is considered one of the uncontrollable
environmental forces that include social, technological, economic, competitive, and regulatory
forces.
Difficulty: 3 Hard
Bloom’s: Apply
16) Using smartphones, people can watch the news, shoot videos, browse the Internet, take
pictures, and listen to music. Improved features are added with each smartphone introduced by
Apple, Samsung, Google, and others. As a result, customers often want to replace their existing
smartphones with new models every two years or more often, even if their existing phones still work.
This increase in demand is due mostly to changes in ________, an environmental force.
1. A) competition
2. B) social culture
3. C) technology
4. D) regulations
5. E) the economy

Answer: C
Explanation: The technological environmental force has resulted in the addition of new features for
the latest generation of smartphones, which make them appealing to prospective and current
smartphone consumers, and spur frequent replacement.
Difficulty: 3 Hard
Bloom’s: Apply

17) Pending federal legislation will require all online retailers to collect state sales taxes from
customers. This would affect online sellers such as Virtual Vineyards, which now collects state sales
taxes only from customers who reside in California, its home state. This pending legislation would be
an example of which environmental force?
1. A) social
2. B) economic
3. C) technological
4. D) competitive
5. E) regulatory

Answer: E
Explanation: Government regulation is generally considered to be one of the uncontrollable or

environmental forces. This legislation may be economically motivated but it nonetheless is an aspect
of the regulatory environment.
Difficulty: 3 Hard
Bloom’s: Apply
18) The demographic characteristics of a population and its culture are called
1. A) social forces.
2. B) economic forces.
3. C) consumer forces.
4. D) attitudinal forces.
5. E) market forces.

Answer: A
Explanation: Key term definition—social forces.

Difficulty: 1 Easy
Topic: Sociocultural Influences
Learning Objective: 03-02 Describe social forces such as demographics and culture.
Bloom’s: Remember
AACSB: Analytical Thinking
19) The social forces in the environment include the ________ of the population and its culture.
1. A) living standards
2. B) social classes
3. C) cohorts
4. D) ethics
5. E) demographic characteristics

Answer: E
Explanation: Key term definition—social forces.
Difficulty: 1 Easy
Bloom’s: Remember
20) Which of the following statements regarding social forces is most accurate?
1. A) Changes in social forces can have a dramatic impact on marketing strategy.

2. B) Social forces within an organization motivate employees to improve their productivity.
3. C) Social forces determine all of the other environmental forces that affect an organization.
4. D) Of all the environmental forces, social forces are the easiest for a marketer to manipulate.

Answer: A
Explanation: The social forces of the environment include the demographic characteristics of the
population and its culture. Changes in these forces can have a dramatic impact on marketing
strategy.
21) Which of the following would be identified as a social force in an environmental scan?
1. A) a new consumer protection law

2. B) an increase in Asian immigration
3. C) an introduction of advanced technology
4. D) a decrease in consumer incomes
5. E) a new international firm exporting to the United States

Answer: B
Explanation: Social forces of the environment include demographic shifts, such as an increase in
Asian immigration.

22) Generation X consumers indicate they want online customer support; websites that are
comprehensive, professional, and interactive; and advertising that is authentic, family-oriented, and
unique. Generation X is also replacing baby boomers as the largest segment of business travelers.
In response, American Airlines is offering travelers in-flight Wi-Fi, entertainment on demand, and
personal power ports. This is an example of how ________ forces impact the marketing
environment.
1. A) economic
2. B) competitive
3. C) social
4. D) technological
5. E) regulatory

Answer: C
Explanation: Social forces include the demographic characteristics of the population, such as age.
Generation X is replacing baby boomers as the largest segment of business travelers. In response,
American Airlines is offering travelers in-flight Wi-Fi, entertainment on demand, and personal power
ports.
Difficulty: 3 Hard
Bloom’s: Apply
23) An important social trend is the continued concern for health and well-being in the United States.
This is most likely evidenced by which of the following?
1. A) the increased sales of Cigar Aficionado

2. B) the introduction of Lay’s Kettle Cooked potato chips, which have 40 percent less fat than regular
potato chips.
3. C) the opening of more Starbucks coffee boutiques in supermarkets.
4. D) the upsizing of menu items at fast-food restaurants.
5. E) the introduction of virtual reality headsets such as the Oculus Rift.

Answer: B
Explanation: Social forces include the demographic characteristics of the population and its values.
Interests in health, fitness, and appearance have prompted companies such as Frito-Lay, for
example, to attract baby boomers with its Lay’s Kettle Cooked potato chips, which have 40 percent
less fat than regular potato chips.
Difficulty: 3 Hard
Bloom’s: Apply
24) Publishers were surprised by the dramatic success of the book Fifty Shades of Grey and believe
that it would likely generate a fresh cycle of female-targeted romances packaged for the mainstream
reader. This is an example of ________ force impacting the marketing environment.
1. A) an economic
2. B) a competitive
3. C) a technological
4. D) a social
5. E) a regulatory

Answer: D
Explanation: Social forces include the demographic characteristics of the population and its values,
the latter of which shape consumer buying patterns, as is the case with the publishing industry.
Difficulty: 3 Hard

Bloom’s: Apply
25) Demographics refer to
1. A) the depiction of a population according to its core values or cultural beliefs and their rate of
change.
2. B) an objective measurement of a person’s likelihood to purchase a product or service.
3. C) the psychological profile of prospective consumers.
4. D) the density of a population in a geographic area.
5. E) the description of a population according to selected characteristics such as age, gender, ethnicity,
income, and occupation.

Answer: E
Explanation: Key term definition—demographics.
Difficulty: 1 Easy
Topic: Demographic Environment
Bloom’s: Remember
26) The description of a population according to selected characteristics such as age, gender,
ethnicity, income, and occupation is referred to as
1. A) consumer group profiling.

2. B) demographics.
3. C) behavioral analysis.
4. D) psychographics.
5. E) statistical analysis.

Answer: B
Explanation: Key term definition—demographics.
Difficulty: 1 Easy
Bloom’s: Remember
27) Demographic characteristics that describe a population include all of the following except which?
1. A) income
2. B) age
3. C) occupation
4. D) density
5. E) ethnicity

Answer: D
Explanation: Key term definition—demographics. Density is a geographic segmentation variable.
Difficulty: 1 Easy
Bloom’s: Remember

28) More is a publication designed to appeal to women aged 40 and over. Demand for such
magazines would be most affected by changing ________ characteristics in the marketing
environment.
1. A) cultural
2. B) behavioral
3. C) psychographic
4. D) occupational
5. E) demographic

Answer: E
Explanation: Describing a population according to selected characteristics such as age, gender,

ethnicity, income, and occupation is referred to as demographics. The age of readers is a
demographic characteristic.
Difficulty: 3 Hard
Bloom’s: Apply
29) The most recent estimates indicate that the population of the world today is about
3. A) 3.9 billion.
4. B) 5.2 billion.
5. C) 7.4 billion.
6. D) 8.2 billion.
7. E) 9.5 billion.

Answer: C
Explanation: The world population today is estimated at 7.4 billion people.
Difficulty: 1 Easy
Bloom’s: Remember
30) By 2050, the world’s population is expected to be
1. A) 2 billion.
2. B) 4.7 billion.
3. C) 6.1 billion.
4. D) 7.9 billion.
5. E) 9.8 billion.

Answer: A
Explanation: By 2050, the world’s population is expected to be 9.8 billion. It is already about 7.4
billion.
Difficulty: 1 Easy
Bloom’s: Remember
31) The change in the growth of the world’s population is called the
1. A) population contraction.
2. B) population inversion.
3. C) population migration.
4. D) population explosion.
5. E) population eruption.

Answer: D
Explanation: Text term definition—population explosion.
Difficulty: 1 Easy
Bloom’s: Remember
32) The population explosion has occurred
1. A) primarily in the developing countries in Asia and Africa.

2. B) fairly evenly throughout the world.
3. C) primarily in the United States due to high birth rates and immigration.
4. D) primarily in the countries of the European Union due to high birth rates and immigration.
5. E) primarily in developed countries due to superior economic, infrastructure, and health care
conditions.

Answer: A
Explanation: The population explosion is occurring primarily in developing countries in Africa and
Asia.
33) Projections show that the population is
1. A) growing rapidly in North America.

2. B) declining sharply in Australia.
3. C) decreasing in Africa.
4. D) increasing in India.
5. E) increasing in Eastern Europe.

Answer: D
Explanation: The population explosion is occurring primarily in the developing countries of Africa
and Asia. In fact, India is predicted to have the world’s largest population in 2050 with 1.7 billion
people, replacing the current largest country, China, which will have a population of 1.3 billion
people. World population projections show that the populations of 42 countries, including China,
Japan, Ukraine, Russia, Romania, Poland, Spain, and Taiwan, will be declining.
34) The country expected to have the largest population in 2050 is
1. A) the United States.

2. B) India.
3. C) China.
4. D) Russia.
5. E) Brazil.

Answer: B
Explanation: India is predicted to have the world’s largest population in 2050 with 1.7 billion people.
China will be second with 1.3 billion.
Difficulty: 1 Easy
Bloom’s: Remember
35) Studies of the ________ characteristics of the U.S. population suggest that it is becoming larger,
older, and more diverse.
1. A) cultural
2. B) psychographic
3. C) geographic
4. D) demographic
5. E) economic

Answer: D
Explanation: Demographic variables include those such as age, gender, ethnicity, income, and
occupation that describe a population. Studies of the demographic characteristics of the U.S.
population suggest several important trends. Generally, the population is becoming larger, older, and
more diverse.
Difficulty: 1 Easy
Bloom’s: Remember

36) Generally, the U.S. population is becoming
1. A) smaller, younger, and more diverse.

2. B) smaller, older, and more diverse.
3. C) larger, younger, and less diverse.
4. D) larger, younger, and more diverse.
5. E) larger, older, and more diverse.

Answer: A
Explanation: Studies of the demographic characteristics of the U.S. population suggest several
important trends. Generally, the population is becoming larger, older, and more diverse.
Difficulty: 1 Easy
Bloom’s: Remember
37) By 2030, the U.S. population is expected to exceed
1. A) 273 million.
2. B) 314 million.
3. C) 323 million.
4. D) 359 million.
5. E) 414 million.

Answer: D
Explanation: The U.S. Census Bureau estimates that the current population of the United States is
approximately 327 million people. If current trends in life expectancy, birth rates, and immigration
continue, by 2030 the U.S. population will exceed 359 million people.
Difficulty: 1 Easy
Bloom’s: Remember
38) All of the following factors contribute significantly to the rate of change of a country’s
population except which?
1. A) life expectancy (the average number of years a population lives from birth)
2. B) immigration (the number of people who enter a country for the purpose of permanent residence)
3. C) population density (the total number of people per square mile/kilometer)
4. D) birth rate (the number of births during a specified time period)
5. E) death rate (the number of deaths during a specified time period)

Answer: C
Explanation: Population density has little to do with the growth or decline of a country’s population.
All of the other alternatives have a significant impact on population growth.
39) The generation of children born between 1946 and 1964 is referred to as
1. A) the grey generation.

2. B) millennials.
3. C) Generation Y.
4. D) baby boomers.
5. E) Generation X.

Answer: D
Explanation: Key term definition—baby boomers.
Difficulty: 1 Easy
Bloom’s: Remember
40) Baby boomers can be defined as the generation born
1945. A) between 1918 and 1945.

1946. B) between 1946 and 1964.
1947. C) between 1965 and 1976.
1948. D) between 1977 and 1994.
1949. E) since 1995.

Answer: B
Explanation: Key term definition—baby boomers.
Difficulty: 1 Easy
Bloom’s: Remember
41) Which of the following currently affects baby boomers, and thus those that market to them, in a
significant way?
1. A) They are beginning to have children.

2. B) They are getting their high school and college educations.
3. C) They are currently retiring or nearing retirement age.
4. D) They are just being born.
5. E) They are beginning their primary school educations.

Answer: C
Explanation: Baby boomers are currently retiring at a rate of 10,000 every 24 hours, and all will be
65 or older by 2030.
42) Prudential, a financial planning firm, offers retirement plans and wealth management advice.
These products are most likely targeted toward which generational cohort?
1. A) Generation Z
2. B) baby busters
3. C) Generation Y
4. D) the greatest generation
5. E) baby boomers

Answer: E
Explanation: Baby boomers are currently retiring at a rate of 10,000 every 24 hours, and all will be
65 or older by 2030. Companies that target boomers need to respond to their interests in health,
fitness, retirement housing, financial planning, and appearance.
Difficulty: 3 Hard
Bloom’s: Apply
43) Olay, a personal care product firm, offers anti-aging and restoration products like its Total Effects
cleansing cloths that are best targeted toward
1. A) echo-boomers.
2. B) Generation Z.
3. C) Generation Y.
4. D) baby boomers.
5. E) baby busters.

Answer: D
Explanation: Companies that target boomers need to respond to their interests in health, fitness,
retirement housing, financial planning, and appearance.
Difficulty: 3 Hard
Bloom’s: Apply

44) In a recent issue of AARP The Magazine, a print ad for State Farm Insurance annuities advises
readers that “The company has helped you enjoy your time with the kids and it can now help you
enjoy your time without them.” The ad is most likely targeted toward which generational cohort?
1. A) echo-boomers
2. B) Millennials
3. C) Generation Yers
4. D) baby boomers
5. E) baby busters

Answer: D
Explanation: Baby boomers were born between 1946 and 1964, and being older, they often are
receptive to products that focus on the enjoying the next stages of life.
Difficulty: 3 Hard
Bloom’s: Apply
45) Generation X is defined as the generation of children born
1964. A) between 1946 and 1964.

1965. B) between World War I and World War II.
1966. C) between 1965 and 1976.
1967. D) between 1977 and 1994.
1968. E) since the millennium.

Answer: C
Explanation: Key term definition—Generation X.
Difficulty: 1 Easy

Bloom’s: Remember
46) The 50 million people born between 1965 and 1976, also called the ________, refers to
Generation X.
1. A) Generation Y
2. B) baby bust
3. C) millennials
4. D) baby boomers
5. E) Generation Z

Answer: B
Explanation: Key term definition—Generation X.
Difficulty: 1 Easy
Bloom’s: Remember
47) The generational cohort known as ________ was born during the baby bust era when the
number of children born each year was declining.
1. A) Generation Z
2. B) Generation Y
3. C) millennials
4. D) Generation X
5. E) baby boomers

Answer: D
Explanation: Generation X includes the 50 million people of the population born between 1965 and
1976. This period is also known as the baby bust, because the number of children born each year
was declining.
Core: Marketing, 8e (Kerin)

Chapter 5 Understanding Organizations as Customers

1) According to the textbook, JCPenney buys paper for which of the following media?
1. A) in-store signage
2. B) special advertising inserts in magazines such as Vogue
3. C) newspaper inserts and direct mail pieces
4. D) annual and 10-K reports
5. E) point-of-purchase displays

Answer: C
Explanation: JCPenney buys paper for use in its newspaper inserts and direct-mail pieces.
Difficulty: 1 Easy
Topic: B2B Buying Process
Learning Objective: 05-01 Distinguish among industrial, reseller, and government organizational
markets.
Bloom’s: Remember
2) Purchasing paper for JCPMedia is one example of
1. A) organizational buying.
2. B) online buying.
3. C) on-time delivery.
4. D) derived demand.
5. E) cooperative selling.

Answer: A
Explanation: Purchasing paper for JCPMedia is one example of organizational buying.
Learning Objective: 05-02 Describe the key characteristics of organizational buying that make it
different from consumer buying.
3) When JCPMedia buys paper for JCPenney newspaper inserts, it considers suppliers’ forest
management and other sustainability practices. JCPMedia buyers consider these as part of the
process to
1. A) fulfill profit responsibilities.

2. B) formally evaluate paper supplier capabilities.
3. C) eliminate the need for online purchasing.
4. D) shorten the value chain.
5. E) fulfill the auditing role.

Answer: B
Explanation: In addition to paper appearance, quality, quantity, and price, JCPMedia paper buyers
formally evaluate paper supplier capabilities, often by extended visits to supplier facilities in the
United States, Canada, and Europe. Supplier capabilities include the capacity to deliver on-time
selected grades of paper from specialty items to magazine papers, the availability of specific types of
paper to meet printing deadlines, and formal programs focused on the life cycle of paper products.
For example, a supplier’s forestry management and sustainability practices are considered in the
paper buying process.
4) JCPenney looks at several capabilities when selecting a paper supplier. These organizational
buying criteria include on-time delivery, the availability, quality and quantity of selected grades of
paper, forestry management and sustainable practices, and price. This examination would be done
during the ________ stage of the organizational buying decision process.
1. A) procurement analysis
2. B) break-even analysis
3. C) purchase decision
4. D) information search
5. E) alternative evaluation

Answer: E
Explanation: These assessments are typical of the alternative evaluation stage of the decision
process.
Learning Objective: 05-03 Explain how buying centers and buying situations influence
organizational purchasing.
5) The marketing of goods and services to companies, governments, or not-for-profit organizations

for use in the creation of goods and services that they can produce and market to others is referred
to as
1. A) integrated marketing.
2. B) institutional marketing.
3. C) business-to-business marketing.
4. D) reseller marketing.
5. E) organizational marketing.

Answer: C
Explanation: Key term definition—business-to-business marketing.
Difficulty: 1 Easy
Topic: Organizational Markets
markets.
Bloom’s: Remember
6) Business-to-business marketing refers to
1. A) the marketing of goods to companies, governments, or ultimate consumers for use in the creation
of goods and services.
2. B) the marketing of products to not-for-profit organizations at a reduced fee or nominal cost for use in
the creation of goods and services that they can produce and market to others.
3. C) the marketing of products and services to companies, governments, or not-for-profit organizations
for use in the creation of products that they can produce and market to others.
4. D) the marketing of services in the area of intellectual property such as legal, financial, or creative
consulting.
5. E) the marketing of an idea to create interest or generate goodwill, not just for an individual brand but
also for an entire industry or product class.

Answer: C
Explanation: Key term definition—business-to-business marketing.
Difficulty: 1 Easy
markets.
Bloom’s: Remember
7) Manufacturers, wholesalers, retailers, service companies, not-for-profit organizations, and

government agencies that buy goods and services for their own use or for resale are referred to as
1. A) multinational buyers.
2. B) resellers.
3. C) organizational buyers.
4. D) ultimate consumers.
5. E) institutional buyers.

Answer: C
Explanation: Key term definition—organizational buyers.
Difficulty: 1 Easy

markets.
Bloom’s: Remember
8) Organizational buyers are
1. A) wholesalers, retailers, and service companies that buy goods and services exclusively for resale.
2. B) any organization that buys products and services for their own use or for resale.
3. C) not-for-profit organizations that buy goods and services for their own use.
4. D) firms that typically buy physical goods and resell them again without any reprocessing.
5. E) all buyers in a nation including ultimate consumers.

Answer: B
Explanation: Key term definition—organizational buyers.
Difficulty: 1 Easy
markets.
Bloom’s: Remember
9) Organizational buyers include manufacturers, wholesalers, retailers, service companies, not-for-

profit organizations, and government agencies that
1. A) purchase exclusively from one supplier.

2. B) are exempt from state and local taxes.
3. C) sell directly to ultimate consumers.
4. D) sell goods and services for their own use.
5. E) buy products and services for their own use or for resale.

Answer: E
Explanation: Organizational buyers are those manufacturers, wholesalers, retailers, and

government agencies that buy products and services for their own use or for resale.
markets.
10) Which of the following organizational buyers purchases raw materials and parts to reprocess into
the finished goods they sell?
1. A) retailers
2. B) wholesalers
3. C) agents
4. D) manufacturers
5. E) ultimate consumers

Answer: D
Explanation: Manufacturers buy raw materials and parts that they reprocess into the finished goods
they sell.
markets.

11) Which of these statements regarding organizational buyers is most accurate?
1. A) Wholesalers and retailers resell the goods they buy without reprocessing them.
2. B) Wholesalers and retailers alter the goods they sell to meet the specific needs of their customers
prior to resale.
3. C) Manufacturers purchase processed goods and resell them to suppliers who in turn resell them to
ultimate consumers.
4. D) Ultimate consumers can be considered organizational buyers when they purchase in large
quantities.
5. E) Government agency purchases are more similar to ultimate consumer purchases than they are to
wholesalers and retailers.

Answer: A
Explanation: Manufacturers buy raw materials and parts that they reprocess into the finished goods
they sell. Wholesalers and retailers resell finished goods without reprocessing them.
markets.
12) All of the following are organizational buyers except which?

1. A) industrial firms
2. B) government units
3. C) ultimate consumers
4. D) resellers
5. E) wholesalers

Answer: C
Explanation: Organizational buyers consist of manufacturers, wholesalers, retailers, and

government agencies that buy products and services for their own use or for resale.
markets.
13) Organizational buyers are divided into three markets, which are
1. A) industrial, wholesaler, and retailer.

2. B) industrial, retailer, and government.
3. C) retailer, manufacturer, and government.
4. D) industrial, government, and ultimate consumer.
5. E) industrial, reseller, and government.

Answer: E
Explanation: Organizational buyers are divided into three markets: (1) industrial, (2) reseller, and (3)
government.
markets.

14) Which of the following exemplifies an organizational buyer?
1. A) A local baker buys sugar at the grocery store to make cookies with his children at home.
2. B) A dentist buys a new couch for her den.
3. C) An architect hires an Uber to take him to the airport for a vacation.
4. D) The owner of an office building contracts with a service to provide overnight janitorial services for
it.
5. E) The mayor rents a tuxedo to wear to his daughter’s wedding.

Answer: D
Explanation: Organizational buyers are those manufacturers, wholesalers, retailers, and

government agencies that buy products and services for their own use or for resale. Organizational
buyers include all buyers in a nation except ultimate consumers. Only the owner of a restaurant is an
organizational buyer; all other alternatives involve purchases by ultimate consumers for their
personal use.
Difficulty: 3 Hard
markets.
Bloom’s: Apply
15) An industrial firm
1. A) is one that is independently owned and takes title to the merchandise it sells.
2. B) buys physical goods and resells them again without any reprocessing.
3. C) deals exclusively with federal, state, and local governments.
4. D) in some way reprocesses a product or service it buys before selling it again to the next buyer.
5. E) only produces a product, not a service.

Answer: D
Explanation: Text term definition—industrial firms.
Difficulty: 1 Easy
markets.
Bloom’s: Remember
16) A firm that reprocesses a product or service it buys before selling the product again to the next
buyer is referred to as
1. A) an industrial firm.
2. B) a reseller firm.
3. C) a government agency.
4. D) a wholesaler.
5. E) a retailer.

Answer: A
Explanation: Text term definition—industrial firms.
Difficulty: 1 Easy
markets.
Bloom’s: Remember

17) Mining companies, farms, transportation, and legal services are all examples of companies in
the
1. A) consumer market.
2. B) cooperative market.
3. C) reseller market.
4. D) industrial market.
5. E) government market.

Answer: D
Explanation: There are about 7.5 million firms in the industrial, or business, market. Companies that
primarily sell physical goods (manufacturers; mining; construction; and farms, timber, and fisheries)
represent 25 percent of all the industrial firms. The services market sells diverse services such as
legal advice, auto repair, and dry cleaning. Service companies—finance, insurance, and real estate
businesses; transportation, communication, and public utility firms; and not-for-profit organizations—
represent 75 percent of all industrial firms.
markets.
18) Which of the following types of firms are in the industrial market?
1. A) retailing
2. B) fisheries
3. C) wholesaling
4. D) state governments
5. E) federal regulatory agencies

Answer: B
Explanation: There are about 7.5 million firms in the industrial, or business, market. These industrial
firms in some way reprocess a product or service they buy before selling it again to the next buyer.
Companies that primarily sell physical goods (manufacturers; mining; construction; and farms,
timber, and fisheries) represent 25 percent of all the industrial firms.
markets.
19) Which of the following is a service business within the industrial market?
1. A) construction
2. B) mining
3. C) insurance
4. D) government
5. E) farming

Answer: C
Explanation: The services market sells diverse services such as legal advice, auto repair, and dry
cleaning. Service companies—finance, insurance, and real estate businesses; transportation,
communication, and public utility firms; and not-for-profit organizations—represent 75 percent of all
industrial firms.
markets.
20) ________ comprise the highest percentage of firms in industrial markets.
1. A) Manufacturing firms
2. B) Construction firms
3. C) Agricultural firms
4. D) Mining companies
5. E) Service companies

Answer: E
Explanation: Service companies represent 75 percent of all industrial firms.
markets.
21) The services market sells diverse services such as legal advice, auto repair, and dry cleaning,
and this market represents 75 percent of all industrial firms. Which of the following is another such
service firm?
1. A) communication
2. B) wholesalers
3. C) retailers
4. D) government units
5. E) educational institutions

Answer: A
Explanation: Service companies, such as legal advice, auto repair, and dry cleaning services;
finance, insurance and real estate businesses; transportation, communication, public utility firms;
and not-for-profit organizations, represent 75 percent of all industrial firms.
markets.
22) Corning, Inc., which transforms an exotic blend of materials to create optical fiber capable of
carrying much of the telephone traffic in the United States on a single strand, is operating in
________ market.
1. A) a consumer
2. B) a government
3. C) a service
4. D) a reseller
5. E) an industrial

Answer: E
Explanation: There are about 7.5 million firms in the industrial, or business, market. These industrial
firms in some way reprocess a product or service they buy before selling it again to the next buyer.
This is true of Corning, Inc., which transforms an exotic blend of materials to create optical fiber
capable of carrying much of the telephone traffic in the United States on a single strand.
markets.

23) Archer Daniels Midland Co. (ADM) is the world’s largest cocoa-bean processor. It buys cocoa
beans and converts them into cocoa powder and cocoa butter, which it then sells to companies like
Hershey’s that manufacture consumer products containing chocolate. ADM is operating in ________
market.
1. A) a consumer
2. B) a government
3. C) an industrial
4. D) a manufacturing
5. E) a reseller

Answer: C
Explanation: Business marketing organizations operating in an industrial market buy a good or

service, reprocess it, and then sell it to another buyer. In this instance, ADM buys cocoa beans,
reprocesses them, and then resells them to consumer package goods manufacturers like Hershey’s.
Difficulty: 3 Hard
markets.
Bloom’s: Apply
24) Keystone Foods, which invented the individual quick freeze process for beef, provides
McDonald’s with millions of pounds of chicken, beef, and fish annually for use in its restaurants. The
firm sources the animal proteins from farms and processes them in a variety of ways, such as
breading or freezing, before selling them to McDonald’s. Keystone is operating in ________ market.
1. A) a heavy goods
2. B) a government
3. C) a service
4. D) an industrial
5. E) a reseller

Answer: D
Explanation: Marketing organizations operating in an industrial market buy a product or service,

reprocess it, and then sell it to another buyer. In this case, the company acquires animal proteins
from farms, processes them, and sells them to McDonald’s.
Difficulty: 3 Hard
markets.
Bloom’s: Apply
25) Graham-Field Health Products makes hospital beds and wheelchairs from the component parts
and materials it buys. It sells these manufactured products to hospitals, nursing homes, and retailers
of health care products. Graham-Field Health Products operates in ________ market.
1. A) a consumer
2. B) a government
3. C) a service
4. D) an industrial
5. E) a reseller

Answer: D
Explanation: Marketing organizations operating in an industrial market buy a product or service,

reprocess it, and then sell it to another buyer. In this case, the firm buys the mattresses, wheels,
metal component parts, etc., makes wheelchairs and hospital beds, and then sells them to hospitals,
nursing homes, and retailers of health care products certainly true of Graham-Field Health Products,
which takes the component parts and materials it buys and makes hospital beds and wheelchairs it
sells to hospitals, nursing homes, and retailers.
Difficulty: 3 Hard
markets.
Bloom’s: Apply
26) Wholesalers and retailers that buy physical products and resell them without any reprocessing
are referred to as
1. A) industrial firms.
2. B) reseller firms.
3. C) government agencies.
4. D) consumer product firms.
5. E) nonprofit firms.

Answer: B
Explanation: Text term definition—resellers.
Difficulty: 1 Easy
markets.
Bloom’s: Remember

27) Among organizational markets, the reseller market includes
1. A) manufacturers.
2. B) logistics and supply chain providers.
3. C) government agencies.
4. D) end-user service providers.
5. E) retailers and wholesalers.

Answer: E
Explanation: Text term definition—resellers.
Difficulty: 1 Easy
markets.
Bloom’s: Remember
28) European Style Furniture (ESF), headquartered in New York, acquires fine furniture from several
high quality manufacturers in Europe and enjoys exclusive distribution rights from them to sell to
furniture stores throughout the United States. In this context, ESF is most likely classified as
1. A) a producer.
2. B) a reseller.
3. C) a service provider.
4. D) a government agency.
5. E) an industrial firm.

Answer: B
Explanation: Resellers are wholesalers and retailers that buy physical products and resell them
without any reprocessing. Here, ESF is a wholesaler because it sells to other stores that will sell to
retailers, which in turn sell to consumers.
Difficulty: 3 Hard

markets.
Bloom’s: Apply
29) 1-800 Contacts is based in Draper, Utah, and sells contact lenses manufactured by other well-
known companies, including Johnson & Johnson Vision Care, Ciba Vision, Bausch & Lomb, and
CooperVision. It would most likely be classified as
1. A) an industrial service provider.

2. B) a health care provider.
3. C) a reseller.
4. D) an industrial firm.
5. E) a government agency.

Answer: C
without any reprocessing. In this case, 1-800 Contacts resells contacts manufactured by others.
Difficulty: 3 Hard
markets.
Bloom’s: Apply
30) Liberty Medical Supply is a home delivery service that sells diabetes testing supplies,
prescription drugs, and other supplies directly to consumers to assist them in the management of
their health-related conditions. Since Liberty Medical does not make any changes to the supplies
that it obtains from manufacturers, it would most likely be classified as
1. A) an industrial service provider.

2. B) a health care manufacturer.
3. C) an industrial firm.
4. D) a reseller.
5. E) a government agency.

Answer: D
Explanation: Resellers are wholesalers and retailers who buy physical products and resell them
again without any reprocessing. In this case, when Liberty Medical sells directly to diabetics and
other ultimate consumers, the firm is acting as a reseller, and in particular a retailer.
Difficulty: 3 Hard
markets.
Bloom’s: Apply
31) In terms of organizational markets, Amazon.com, Lands’ End, and JCPenney would most likely
be classified as
1. A) government units.
2. B) resellers.
3. C) manufacturers.
4. D) wholesalers.
5. E) industrial firms.

Answer: B
without any reprocessing. These firms are examples of retailers that purchase merchandise as
resellers.
Difficulty: 3 Hard
markets.
Bloom’s: Apply
32) Federal, state, and local agencies that buy products and services for the constituents they serve
are referred to as
1. A) industrial markets.
2. B) reseller markets.
3. C) consumer markets.
4. D) government units.
5. E) global markets.

Answer: D
Explanation: Text term definition—government units.
Difficulty: 1 Easy
markets.
Bloom’s: Remember

33) When Louisiana State University buys new laptops for its faculty, it is operating as
1. A) an industrial market.
2. B) a business market.
3. C) a government unit.
4. D) a consumer market.
5. E) a service provider.

Answer: C
Explanation: Government units are federal, state (such as a state university), and local agencies
that buy products and services for the constituents they serve.
Difficulty: 3 Hard
markets.
Bloom’s: Apply
34) When the General Services Administration (GSA), an agency of the federal government,
purchased 116 Chevy Volts from General Motors for its vehicle fleet, it was operating as
1. A) an industrial market.
2. B) a business market.
3. C) a consumer market.
4. D) a government unit.

Answer: D
Explanation: Government units are federal, state, and local agencies that buy products and services
for the constituents they serve.
Difficulty: 3 Hard

markets.
Bloom’s: Apply
35) The City of Denver contracts with Solid Waste Management to provide trash collection services
for its citizens. The city is operating as
1. A) a government unit.
2. B) an industrial market.
3. C) a business market.
4. D) a consumer market.

Answer: A
Explanation: Government units are federal, state, and local (like the City of Denver) agencies that
buy products and services for the constituents they serve.
Difficulty: 3 Hard
markets.
Bloom’s: Apply
36) The system that provides common industry definitions for Canada, Mexico, and the United
States, which makes it easier to measure economic activity in the three member countries of the
North American Free Trade Agreement (NAFTA), is referred to as the
1. A) Standard Industrial Code System (SICS).
2. B) United Nations Central Product Classification System (UNCPCS).
3. C) National Codes of Industry System (NCIS).
4. D) North American Industry Classification System (NAICS).
5. E) Federal System of International Organizations (FSIO).

Answer: D
Explanation: Key term definition—North American Industry Classification System (NAICS).
Difficulty: 1 Easy
markets.
Bloom’s: Remember
37) The North American Industry Classification System (NAICS)
1. A) provides common industry definitions for North America, Central America, and South America to
measure economic activity in the Western Hemisphere.
2. B) provides common industry definitions between Canada and the United States to measure economic
activity and reduce barriers of trade for cross-border firms.
3. C) provides a classification system for products that is consistent worldwide.
4. D) provides a classification system for products that is consistent across North America, Central
America, and South America to measure economic activity in the Western Hemisphere.
5. E) provides common industry definitions for Canada, Mexico, and the United States to measure
economic activity in the three member countries.

Answer: E
Explanation: Key term definition—North American Industry Classification System (NAICS).
Difficulty: 1 Easy
markets.
Bloom’s: Remember
38) NAICS provides common industry definitions to facilitate the measurement of economic activity
for the member countries of the
1. A) European Union (EU).

2. B) United Nations (UN).
3. C) North American Free Trade Agreement (NAFTA).
4. D) North Atlantic Treaty Organization (NATO).
5. E) World Trade Organization (WTO).

Answer: C
Explanation: The North American Industry Classification System (NAICS) provides common
industry definitions for Canada, Mexico, and the United States, which makes it easier to measure
economic activity in the three member countries of the North American Free Trade Agreement
(NAFTA).
Difficulty: 1 Easy
markets.
Bloom’s: Remember

39) The acronym NAICS stands for
1. A) National Association of Industrial Compliance Standards.

2. B) National Association of Industrial Communication Systems.
3. C) North American Industrial Communication Standards.
4. D) North American Industry Classification System.
5. E) North Atlantic Industrial Classification System.

Answer: D
Explanation: The acronym NAICS stands for the North American Industry Classification System
(NAICS).
Difficulty: 1 Easy
markets.
Bloom’s: Remember
40) The NAICS provides common industry definitions for
1. A) Canada, the United Kingdom, and the United States.

2. B) North America, Asia, and Europe.
3. C) North America, Central America, and South America.
4. D) Canada, England, and Australia.
5. E) Canada, Mexico, and the United States.

Answer: E
Explanation: The North American Industry Classification System (NAICS) provides common
industry definitions for Canada, Mexico, and the United States.
Difficulty: 1 Easy
markets.
Bloom’s: Remember
41) The NAICS groups economic activity to permit studies of
1. A) multilanguage advertising.
2. B) market share, demand, or import competition.
3. C) growth potential in emerging markets.
4. D) best practices for manufacturers.
5. E) job outsourcing and trade flow impacts.

Answer: B
Explanation: The NAICS groups economic activity to permit studies of market share, demand for
products and services, import competition in domestic markets, and similar studies.
markets.
42) The North American Industry Classification System (NAICS) designates industries with a
numerical code in a defined structure. A six-digit coding system is used. The first two digits
designate
1. A) a country of origin.
2. B) an industry group.
3. C) a specific industry.
4. D) an individual country-level national industry.
5. E) a sector of the economy.

Answer: E
Explanation: The NAICS code designates industries with a numerical code in a defined structure. A
six-digit coding system is used. The first two digits designate a sector of the economy, the third digit
designates a subsector, and the fourth digit represents an industry group. The fifth digit designates a
specific industry and is the most detailed level at which comparable data are available for Canada,
Mexico, and the United States. The sixth digit designates individual country-level national industries.
markets.
numerical code in a defined structure. A six-digit coding system is used. The third digit designates
1. A) an industry subsector.

Answer: A
Explanation: The NAICS designates industries with a numerical code in a defined structure. A six-
digit coding system is used. The first two digits designate a sector of the economy, the third digit
markets.
numerical code in a defined structure. A six-digit coding system is used. The fifth digit designates
1. A) an industry subsector.

Answer: C
Explanation: The NAICS designates industries with a numerical code in a defined structure. A six-
digit coding system is used. The first two digits designate a sector of the economy, the third digit
markets.
45) Important market characteristics in organizational buying behavior include which of the
following?
1. A) large markets but orders become progressively smaller over time
2. B) diminishing international opportunities as more firms enter the market
3. C) many customers placing progressively larger orders over time
4. D) fewer customers but with larger orders
5. E) a market that functions independently of consumer demand

Answer: D
Explanation: The market characteristics for organizational buying include derived demand for
industrial products and services, typically few customers, and their purchase orders are large. See
Figure 5-1 in the textbook.
46) Important market characteristics in organizational buying behavior include which of the
following?
1. A) Organizational buying behavior is the same as consumer buying behavior because individuals are
involved in both processes.
2. B) Demand for industrial products is elastic instead of inelastic.
3. C) Demand for industrial products and services is derived.
4. D) Purchase orders are much more frequent and they are usually small.
5. E) Forecasting is not as important in organizational buying as in consumer buying.

Answer: C
Explanation: The market characteristics for organizational buying include derived demand for
industrial products and services, typically few customers, and their purchase orders are large. See
Figure 5-1 in the textbook.

47) Important product or service characteristics in organizational buying include which of the
following?
1. A) A heavy emphasis is placed on loyalty programs and rebates.

2. B) Direct selling to organizational buyers is rare.
3. C) A fixed, nonnegotiable price is the norm.
4. D) Many of the products and services are technical in nature.
5. E) Personal relationships are preferred to online buying over the Internet.

Answer: D
Explanation: Key characteristics or dimensions of product and service characteristics in

organizational buying include: (1) products or services that are technical in nature and purchased on
the basis of specifications; (2) many of the goods purchased are raw and semifinished; and (3)
heavy emphasis is placed on delivery time, technical assistance, and post-sale service. See Figure
5-1 in the textbook.
48) Important characteristics in organizational buying include which of the following?

1. A) Many of the goods purchased are raw and semifinished.
2. B) A heavy emphasis is placed on maintaining standardization to keep costs down.
3. C) Coupons and contests are the most frequent forms of promotion.
4. D) A fixed, nonnegotiable price is the norm.
5. E) Personal relationships are preferred to online buying over the Internet.

Answer: A
Explanation: Key characteristics or dimensions of product and service characteristics in

organizational buying include: (1) products or services that are technical in nature and purchased on
the basis of specifications; (2) many of the goods purchased are raw and semifinished; and (3)
heavy emphasis is placed on delivery time, technical assistance, and post-sale service. See Figure
5-1 in the textbook.

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Topic: Environmental Influences on Marketing

Learning Objective: 03-01 Explain the purpose of environmental scanning.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

Topic: Environmental Influences on Marketing

Learning Objective: 03-01 Explain the purpose of environmental scanning.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

3) Environmental scanning refers to

Explanation: Key term definition—environmental scanning.

Topic: Environmental Influences on Marketing

Learning Objective: 03-01 Explain the purpose of environmental scanning.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

1. A) significant trend analysis.

Explanation: Key term definition—environmental scanning.

Topic: Environmental Influences on Marketing

Learning Objective: 03-01 Explain the purpose of environmental scanning.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

5) Environmental trends arise from all of the following forces except which?

Explanation: Environmental scanning trends come from social, economic, technological,

Topic: Environmental Influences on Marketing

Learning Objective: 03-01 Explain the purpose of environmental scanning.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

6) The purpose of environmental scanning is to

1. A) uncover causes of trends in the marketplace.

Topic: Environmental Influences on Marketing

Learning Objective: 03-01 Explain the purpose of environmental scanning.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

1. A) Environmental scanning changes the marketing environment.

Topic: Environmental Influences on Marketing

Learning Objective: 03-01 Explain the purpose of environmental scanning.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

Topic: Environmental Influences on Marketing

Learning Objective: 03-01 Explain the purpose of environmental scanning.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

1. A) optimized its distribution by adding local outlets in grocery stores

Topic: Environmental Influences on Marketing

Learning Objective: 03-01 Explain the purpose of environmental scanning.

AACSB: Knowledge Application

Topic: Environmental Influences on Marketing

Learning Objective: 03-01 Explain the purpose of environmental scanning.

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

Explanation: Only regulatory issues are not mentioned in the question.

Topic: Environmental Influences on Marketing

Learning Objective: 03-01 Explain the purpose of environmental scanning.

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

1. A) economic, since few can afford a newspaper today

Learning Objective: 03-01 Explain the purpose of environmental scanning.

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

1. A) a reactive strategy that would impact the competitive environmental force.

Topic: Environmental Influences on Marketing

Learning Objective: 03-01 Explain the purpose of environmental scanning.