Illinois State University

MKT 230

CHAPTER 3 QUIZ

1)Jane works as a part of the marketing team at Neo Equipment Corp. Her job profile involves collecting information about the marketing environment from various business journals and the Internet. Her colleague Ravi will then assess this information to determine its significance for the company. Jane is engaging in:

2. Lime'n'Lemon, Tangemon, and Refreshmint are soft drink companies that operate in the Greater Hammersmith market. The drinks marketed by the three companies are very similar in flavor, and retail at similar prices. These firms are regarded as                                                                                                                                       competitors.

3. Concours Automotive manufactures luxurious family cars that are roomy, powerful, and expensive. CMC Motors manufactures mid-size, compact cars at reasonable prices intended for use in urban areas. Concours and CMC Motors are examples of                                                                                                                                 competitors.

4. Firms that provide very different products to solve the same problem or satisfy the same basic customer need are referred to as                                                                          competitors.

5. Shopping, dancing, and reading are examples of                                competitors for those who are looking for a source of entertainment.

6. BlueGems is the sole marketer of diamond rings and other diamond jewellery in Maku. The company has no competitors in the market. The diamond market in Maku is an example of:

7. Three cellular network operators, Fonica, STM, and Axis Communications, dominate the telecommunications market in Lassau. This type of competitive structure is referred to as:

8.                        refers to a competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product.

9. Which of the following is a characteristic of pure competition?

10. The restaurant industry is an example of a(n)                             , especially in case of the fast food industry in which all products and services are the same, but are marketed differently, and there exists a perception that some fast food restaurants must be better than others.

11. Which of the following is a characteristic of the prosperity stage of the business cycle?

12. Which of the following activities should firms typically undertake during the recession stage?

13. During the                         stage of the business cycle, the total disposable income of the consumers is at a minimum due to high unemployment and low wages.

14. Which of the following is characteristic of the depression phase of the business cycle?

15. During the                         stage of the business cycle, high unemployment begins to decline and the total disposable income of consumers increases.

16. The amount of money left after payment of taxes that is used by individuals for spending on purchase of basic necessities, and savings is referred to as                                                                                       . ANSWER: disposable income

17.                        is the resultant when the expenses on food, clothing, and shelter are deducted from the disposable income.

18. Carolina is left with a total of $35,000 per annum after the payment of taxes. This amount can be regarded as her                                                                               .

19. The Dodd-Frank Wall Street Reform and Consumer Protection Act was passed by the government to:

20. Which of the following is a function of the Federal Trade Commission?