1. The monopolistic competition that is typical of the U.S. economy:
a. always leads to higher prices, but it may not lead to higher consumer satisfaction.
b. is a problem because it does not result in products that reflect consumer's social values.
c. is the result of consumer preferences.
d. is the result of manipulation of markets by business firms.
2. As consumers shift their support to firms that do meet their needs:
a. firms should increase promotional expenditure
b. firms should try to attract new customers.
c. firms must immediately adopt their competitors' strategies.
d. laggard businesses are forced to either improve or get out of the way
3. Which of the following statements BEST describes a marketing manager?
a. A marketing manager should know that most consumer complaints do not require a response because the consumer's dissatisfaction is beyond the control of the firm.
b. A marketing manager should recognize that many consumers who complain are troublemakers and that not much can or should be done about their complaints.
c. A marketing manager should assume that most customers who are dissatisfied will complain, but that people who are satisfied will not.
d. A marketing manager should be concerned that many of the complaints that are reported are never resolved.