Chapter 1 Marketing in Today's Economy
MULTIPLE CHOICE
1. 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?
a. retailers d. manufacturers
b. wholesalers e. market research firms
c. customers
ANS: C DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Strategy
TOP: A-Head: The Challenges and Opportunities of Marketing in Today's Economy
KEY: Bloom's: Knowledge
2. __________ 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.
a. Specialization d. Price devaluation
b. Commoditization e. Market homogeneity
c. Maturation
ANS: B DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Strategy
TOP: A-Head: Introduction | A-Head: Beyond the Pages 1.1 KEY: Bloom's: Knowledge
,3. Which of the following changes occurring in today’s economy has NOT been caused by the
growth of the Internet?
a. increase in product selection d. rising prices for most products
b. shifting demand patterns e. audience and media fragmentation
c. privacy and security concerns
ANS: D DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
STA: DISC: Strategy
TOP: A-Head: The Challenges and Opportunities of Marketing in Today's Economy
KEY: Bloom's: Analysis
4. Although mass media audiences are becoming increasingly fragmented, media fragmentation
does have a major advantage. What is this advantage?
a. It now costs less to reach a mass audience.
b. It is much easier to measure feedback from mass media audiences.
c. It is now easier to reach small, highly targeted audiences.
d. Consumers are now much more receptive to television advertising.
e. Consumers are now highly susceptible to online advertising.
ANS: C DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
STA: DISC: Promotion
TOP: A-Head: The Challenges and Opportunities of Marketing in Today's Economy
KEY: Bloom's: Comprehension
5. 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?
a. Customers will always seek the best value regardless of quality.
b. Customers will always turn to the most recognized brand.
, c. Customers would rather perform service for themselves to save money.
d. Customers will turn to the most convenient, least expensive alternative in situations where
they see goods and services as commodities.
e. Customers will always seek the best quality regardless of price.
ANS: D DIF: Difficulty: Challenging NAT: BUSPROG: Analytic
STA: DISC: Customer
TOP: A-Head: The Challenges and Opportunities of Marketing in Today's Economy
KEY: Bloom's: Synthesis
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:
a. international markets. d. metamarkets.
b. domestic, interstate markets. e. peer-to-peer transactions.
c. business-to-business markets.
ANS: A DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: International Perspective
TOP: A-Head: The Challenges and Opportunities of Marketing in Today's Economy
KEY: Bloom's: Comprehension
7. 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 __________.
a. satisfaction; customer relationships d. value; satisfaction
b. value; customer relationships e. quality; value
c. quality; transactions
, ANS: B DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
STA: DISC: Strategy TOP: A-Head: Basic Marketing Concepts
KEY: Bloom's: Analysis
8. A cluster of closely related goods and services that center around a specific consumption activity
is referred to as a:
a. marketspace. d. marketing channel.
b. market. e. metamarket.
c. metamediary.
ANS: E DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Strategy TOP: A-Head: Basic Marketing Concepts
KEY: Bloom's: Knowledge
9. 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?
a. distributor d. metamarket
b. marketspace e. electronic broker
c. metamediary
ANS: C DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
STA: DISC: Strategy TOP: A-Head: Basic Marketing Concepts
KEY: Bloom's: Application
10. Which of the following IS NOT one of the five conditions of exchange in marketing?
a. There must be at least two parties to the exchange.
MULTIPLE CHOICE
1. 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?
a. retailers d. manufacturers
b. wholesalers e. market research firms
c. customers
ANS: C DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Strategy
TOP: A-Head: The Challenges and Opportunities of Marketing in Today's Economy
KEY: Bloom's: Knowledge
2. __________ 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.
a. Specialization d. Price devaluation
b. Commoditization e. Market homogeneity
c. Maturation
ANS: B DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Strategy
TOP: A-Head: Introduction | A-Head: Beyond the Pages 1.1 KEY: Bloom's: Knowledge
,3. Which of the following changes occurring in today’s economy has NOT been caused by the
growth of the Internet?
a. increase in product selection d. rising prices for most products
b. shifting demand patterns e. audience and media fragmentation
c. privacy and security concerns
ANS: D DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
STA: DISC: Strategy
TOP: A-Head: The Challenges and Opportunities of Marketing in Today's Economy
KEY: Bloom's: Analysis
4. Although mass media audiences are becoming increasingly fragmented, media fragmentation
does have a major advantage. What is this advantage?
a. It now costs less to reach a mass audience.
b. It is much easier to measure feedback from mass media audiences.
c. It is now easier to reach small, highly targeted audiences.
d. Consumers are now much more receptive to television advertising.
e. Consumers are now highly susceptible to online advertising.
ANS: C DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
STA: DISC: Promotion
TOP: A-Head: The Challenges and Opportunities of Marketing in Today's Economy
KEY: Bloom's: Comprehension
5. 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?
a. Customers will always seek the best value regardless of quality.
b. Customers will always turn to the most recognized brand.
, c. Customers would rather perform service for themselves to save money.
d. Customers will turn to the most convenient, least expensive alternative in situations where
they see goods and services as commodities.
e. Customers will always seek the best quality regardless of price.
ANS: D DIF: Difficulty: Challenging NAT: BUSPROG: Analytic
STA: DISC: Customer
TOP: A-Head: The Challenges and Opportunities of Marketing in Today's Economy
KEY: Bloom's: Synthesis
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:
a. international markets. d. metamarkets.
b. domestic, interstate markets. e. peer-to-peer transactions.
c. business-to-business markets.
ANS: A DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: International Perspective
TOP: A-Head: The Challenges and Opportunities of Marketing in Today's Economy
KEY: Bloom's: Comprehension
7. 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 __________.
a. satisfaction; customer relationships d. value; satisfaction
b. value; customer relationships e. quality; value
c. quality; transactions
, ANS: B DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
STA: DISC: Strategy TOP: A-Head: Basic Marketing Concepts
KEY: Bloom's: Analysis
8. A cluster of closely related goods and services that center around a specific consumption activity
is referred to as a:
a. marketspace. d. marketing channel.
b. market. e. metamarket.
c. metamediary.
ANS: E DIF: Difficulty: Easy NAT: BUSPROG: Analytic
STA: DISC: Strategy TOP: A-Head: Basic Marketing Concepts
KEY: Bloom's: Knowledge
9. 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?
a. distributor d. metamarket
b. marketspace e. electronic broker
c. metamediary
ANS: C DIF: Difficulty: Moderate NAT: BUSPROG: Analytic
STA: DISC: Strategy TOP: A-Head: Basic Marketing Concepts
KEY: Bloom's: Application
10. Which of the following IS NOT one of the five conditions of exchange in marketing?
a. There must be at least two parties to the exchange.
