Question 1

In the airline industry,companies like American,Delta,and US Air have a difficult time competing because their industry has become commoditized.What does this mean for firms in the airline industry?

Accepted Answer

Commoditization means that there is very little differentiation among product offerings in the industry. In the airline industry, this means that the major players like American, Delta, and US Air have to compete largely on price, as there is little else that distinguishes their services from each other. This can make it difficult for them to maintain profitability and customer loyalty.

Question 2

Edmunds.com provides a collection of online services and information pertaining to the automotive market.Edmunds offers reviews,free pricing reports,discussion boards,and links to a variety of car manufacturers,dealers,insurance companies,and finance companies.What role does Edmunds.com play in today's economy?

Accepted Answer

Edmunds.com acts as a metamediary by providing a platform for connecting consumers with various companies in the automotive industry such as car manufacturers, dealers, insurance companies and finance companies.

Question 3

__________ involves the analysis of economic,political,legal,technological,and cultural events and trends that may affect the future of the organization and its marketing efforts.

Accepted Answer

Environmental scanning is the process of analyzing the external factors that may have an impact on the organization and its marketing efforts. This includes the economic, political, legal, technological, and cultural factors that may affect the market and the industry in which the organization operates. By conducting environmental scanning, marketers can identify the opportunities and threats that exist in the environment and develop strategies to respond to them.

Question 4

In the traditional transactional marketing approach,the ultimate goal of marketing is to:

Accepted Answer

In the traditional transactional marketing approach, the ultimate goal of marketing is to acquire new customers and complete a large number of exchanges. The focus is on making as many sales as possible without necessarily building long-term relationships with customers or creating value in the buyer-seller relationship. Serving customers' needs and wants, developing long-term customer relationships, and creating value in the buyer-seller relationship are more aligned with the goals of relationship marketing.

Question 5

Which of the following IS NOT one of the five conditions of exchange in marketing?

Accepted Answer

The fifth condition of exchange is that each party must be capable of communication and delivery. Immediate delivery is not a requirement for exchange to occur.

Question 6

One of the major difficulties of conducting business in today's economy concerns the unclear legal jurisdiction surrounding many business transactions.The issue is especially keen for marketers who do business in:

Accepted Answer

International markets often involve dealing with different countries, each with its own legal system and regulations. This can make it difficult to determine which laws apply to a particular business transaction, leading to confusion and potential legal issues.

Question 7

Changing value propositions in today's economy-such as changes caused by the growth in e-commerce-have forced marketers to learn a tough lesson about customers.What is that lesson?

Accepted Answer

The lesson that marketers have learned is that in today's economy, customers will turn to the most convenient, least expensive alternative in situations where they see goods and services as commodities. This is especially relevant in the growth of e-commerce, where customers have access to a wide range of options and can easily compare prices and convenience. As a result, marketers must focus on providing convenience and value in order to remain competitive.

Question 8

Many firms attempt to distinguish or differentiate their product offerings through the use of __________ strategies.This involves establishing a mental image of the product offering relative to competing offerings in the minds of target buyers.

Accepted Answer

Product positioning involves establishing a distinct image of a product relative to competing offerings in the minds of target buyers. This can be done through various strategies such as creating unique features, emphasizing benefits, or focusing on specific customer segments. Product positioning is a key component of marketing strategy and is often used by firms to differentiate their products from those of competitors.

Question 9

A product that provides the utmost in convenience is said to offer exceptional:

Accepted Answer

Time and place utility refers to the convenience offered by a product in terms of when and where it is available, aligning with the definition of providing the utmost in convenience.

Question 10

Which of the following changes occurring in today's economy has NOT been caused by the growth of the Internet?

Accepted Answer

Rising prices for most products has not been caused by the growth of the Internet. Other factors such as inflation, changes in supply and demand, and production costs impact prices.

Question 11

Among the fundamental changes to marketing and business practice in today's economy is the dramatic increase in the availability of information.This increase in information has created a shift in the balance of power in the supply chain.Who now holds most of the power in today's economy?

Accepted Answer

Customers now hold most of the power in today's economy due to the increase in information that allows them to make informed purchasing decisions and demand products that meet their specific needs and preferences. Retailers, wholesalers, manufacturers, and market research firms all play important roles in the supply chain, but ultimately it's the customer who has the final say in what products succeed or fail in the marketplace.

Question 12

A customer's decision to purchase one product or group of products over another is primarily a function of:

Accepted Answer

While all of the factors listed can influence a customer's decision to purchase, ultimately the primary driver of the decision is how well the product or products will fulfill the customer's needs and wants. Convenience, features, price, and availability may all play a role, but if a product does not fulfill the customer's desired outcome or solve their problem, they are unlikely to make a purchase.

Question 13

__________ is the curse of mature markets whereby products lack any real means of differentiation and customers see competing products as offering roughly the same benefits.

Accepted Answer

Commoditization is when products become interchangeable and lack differentiation leading to price wars and reduced margins as customers see little difference between them. The other options are not a direct cause of this phenomenon.

Question 14

Furniture Mart offers services such as financing and home delivery to its customers.What type of utility is Furniture Mart trying to increase?

Accepted Answer

Furniture Mart is trying to increase possession utility by offering financing options and home delivery to its customers, making it easier for them to acquire and own their desired furniture.

Question 15

A cluster of closely related goods and services that center around a specific consumption activity is referred to as a:

Accepted Answer

A metamarket refers to a cluster of closely related goods and services that center around a specific consumption activity, such as a group of products and services that are needed to plan and take a vacation.

Question 16

All of the following are reasons for the general decline in customer satisfaction over the past 20 years EXCEPT:

Accepted Answer

The statement "Product quality is much lower now than at any time in the past" is not true. In fact, many industries have made significant improvements in product quality over the past 20 years. The other options are all potential reasons for the decline in customer satisfaction.

Question 17

Although mass media audiences are becoming increasingly fragmented,media fragmentation does have a major advantage.What is this advantage?

Accepted Answer

Media fragmentation allows advertisers to reach small, highly targeted audiences. This means that advertisers can tailor their message to specific demographics or interests, resulting in more effective advertising and potentially higher conversion rates.

Question 18

Which of the following statements about pricing decisions in the marketing program is TRUE?

Accepted Answer

Price has a direct connection with customer demand as it affects their willingness to purchase a product or service. The other statements are false - both A and E are misleading and overlook the other elements of the marketing mix that contribute to revenue and customer perceptions of quality, respectively. Pricing is actually one of the most manipulated elements of the marketing mix, and while it can be difficult to change, it is no more so than the other Ps (product, promotion, and place).

Question 19

In 2005,the American Marketing Association changed the definition of marketing that had stood for 20 years.The major changes in the definition included a shift from delivering the 4 Ps (product,price,place,promotion)to delivering __________ and a shift from creating exchanges to creating __________.

Accepted Answer

The new definition of marketing focuses on delivering value to customers rather than just creating transactions or exchanges. The goal is to build long-term customer relationships and drive customer satisfaction. Therefore, the best choice is B, which includes the shift towards delivering value and customer relationships.

Question 20

What type of planning deals with specific markets or market segments and the development of marketing programs that will fulfill the needs of customers in those markets?

Accepted Answer

The answer of What type of planning deals with specific...

Quiz 1: Marketing in Todays Economy