Question 1

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 advertising can be more efficient and effective as it is directed towards those individuals who are most likely to be interested in a particular product or service. This can result in a higher return on investment for advertisers.

Question 2

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

Accepted Answer

E

Question 3

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 emphasizes creating value for customers, rather than just delivering the 4 Ps. Additionally, the new definition prioritizes building strong customer relationships, rather than just creating exchanges. Choice B is the only option that accurately reflects both of these changes.

Question 4

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 different legal systems and regulations, making it challenging for marketers to navigate and ensure adherence to all applicable laws.

Question 5

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 creating a unique image or perception of a product in the minds of the target audience. This helps to differentiate the product from its competitors and establish a competitive advantage. Branding, perceptual marketing, image marketing, and comparative strategies may also be used in conjunction with product positioning, but product positioning is the most specific and accurate answer to the question.

Question 6

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

Accepted Answer

The condition that each party must be capable of immediate delivery is not one of the five conditions of exchange in marketing. The actual fifth condition is that each party must believe that it is desirable to exchange with the other party.

Question 7

Marketers who offer supplemental services such as financing, home delivery, or installation do so in an effort to increase what type of utility?

Accepted Answer

By offering supplemental services such as financing, home delivery, and installation, marketers are increasing the possession utility of their products. Possession utility refers to the value that consumers receive from the ability to use and own a product. By offering these services, marketers are making it easier and more convenient for consumers to acquire and use the product, thereby increasing its possession utility.

Question 8

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

The increase in information has given customers a greater understanding of their options, prices, and quality. With this increased knowledge, customers now have the power to choose where and how they purchase goods and services. This has made it increasingly important for businesses to focus on creating value for their customers to remain competitive.

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

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

Accepted Answer

The other options - A) customers are less brand loyal, B) customers are price sensitive, C) customers are demanding, and E) customers are more informed and skeptical - have all been cited as contributing factors to the decline in customer satisfaction. However, there is no evidence to suggest that product quality is lower now than at any time in the past. In fact, many companies have improved the quality of their products over the years, but customer expectations have also increased.

Question 11

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 growth of e-commerce has made it easier for customers to compare prices and see goods and services as commodities. As a result, customers are more likely to choose the most convenient and least expensive alternative, which is the lesson that marketers have had to learn. Therefore, choice D is the best answer.

Question 12

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 is not directly caused by the growth of the Internet. It could be attributed to other factors such as inflation, supply chain disruptions, or changes in government policies. The other options, such as increase in product selection, shifting demand patterns, privacy and security concerns, and audience and media fragmentation, can be linked to the growth of e-commerce and digital technologies.

Question 13

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

Accepted Answer

Commoditization in the airline industry means that there is very little differentiation among product offerings. This makes it difficult for firms to compete on anything other than price, and creates a "race to the bottom" where companies try to cut costs as much as possible to stay competitive. As a result, companies in the airline industry often struggle to differentiate themselves and create a sustainable competitive advantage.

Question 14

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

Accepted Answer

In the traditional transactional marketing approach, the ultimate goal is to acquire new customers and complete a large number of exchanges, which is focused on short-term sales rather than long-term relationships or creating value in the buyer-seller relationship.

Question 15

_____ 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 the process by which products become indistinguishable from one another in terms of features and benefits, resulting in intense price competition and narrowing profit margins. This occurs in mature markets when companies focus on efficiency and cost-cutting rather than innovation and differentiation. As a result, customers see competing products as interchangeable, resulting in market homogeneity. Specialization refers to the strategy of focusing on a specific market segment or niche. Maturation refers to a stage in a product's life cycle where growth slows down, and sales growth rates stabilize. Price devaluation is a decrease in the value of a product caused by factors such as increased competition or changes in consumer preferences.

Question 16

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, as it aggregates information from various sources and provides a platform for users to connect with car manufacturers, dealers, insurance companies, and finance companies. It does not physically distribute or sell cars, making choice A incorrect. It is not a marketplace or marketspace where transactions take place, making choice B incorrect. It is also not a metamarket or electronic broker, making choices D and E incorrect.

Question 17

_____ 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 involves the systematic analysis and monitoring of external factors and trends that can have an impact on the organization and its marketing efforts. This includes analyzing economic conditions, political and legal developments, technological advancements, social and cultural changes, and competitive activities. Environmental scanning provides important insights into market opportunities and threats, and helps the organization to make sound strategic and tactical decisions that are aligned with the external environment.

Question 18

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

Accepted Answer

Price has a direct connection with customer demand. In other words, a change in price can affect the demand for a product or service. It is important for marketers to consider the relationship between price and demand when making pricing decisions.

Question 19

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

Accepted Answer

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

Question 20

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

Accepted Answer

While convenience, features, price, and availability all play a role in a customer's decision making, ultimately the primary factor is whether or not the product will fulfill their needs and wants.

Quiz 1: Marketing in Todays Economy