A) reintermediation
B) disintermediation
C) retail transformation
D) e-collaboration
E) new-market synchronization
Answer: A
Diff: 2
LO: 1.2: Describe the new marketing realities.
AACSB: Application of knowledge
60) When eBay and Amazon.com cut out the majority of middlemen that normally would participate in the exchange process, it is an example of ________.
A) deregulation
B) reverse auctioning
C) reintermediation
D) disintermediation
E) diversification
Answer: D
Diff: 2
LO: 1.2: Describe the new marketing realities.
AACSB: Integration of real-world business experiences
61) Each of the following is true about the internet's impact on the way business is conducted today, EXCEPT one. Identify the exception.
A) It has facilitated high-speed communication among employees.
B) It has empowered consumers with easy access to information.
C) It can be used as a powerful sales channel.
D) It has facilitated mass marketing but not the sale of customized products.
E) It enables marketers to use social media to advertise their products.
Answer: D
Diff: 3
LO: 1.2: Describe the new marketing realities.
AACSB: Reflective thinking
62) Industry boundaries are blurring at an incredible rate as companies are recognizing that new opportunities lie at the intersection of two or more industries.
Answer: TRUE
Diff: 2
LO: 1.2: Describe the new marketing realities.
AACSB: Reflective thinking
63) The overabundance of information available on the internet has made it more difficult for consumers to compare product features and prices.
Answer: FALSE
Diff: 1
LO: 1.2: Describe the new marketing realities.
AACSB: Reflective thinking
64) The selling concept holds that consumers will favor those products that offer the most quality, performance, or innovative features.
Answer: FALSE
Diff: 2
LO: 1.2: Describe the new marketing realities.
AACSB: Analytical thinking
65) Integrated marketing is the task of hiring, training, and motivating able employees who want to serve customers well.
Answer: FALSE
Diff: 1
LO: 1.2: Describe the new marketing realities.
AACSB: Reflective thinking
66) Performance marketing requires understanding the financial and nonfinancial returns to business and society from marketing activities and programs.
Answer: TRUE
Diff: 2
LO: 1.2: Describe the new marketing realities.
AACSB: Reflective thinking
67) What parameters does a company typically monitor within the concept of performance marketing?
Answer: Performance marketing involves reviewing metrics assessing market share, customer loss rate, customer satisfaction, and product quality in the evaluation of the effectiveness of marketing activities.
Diff: 3
LO: 1.2: Describe the new marketing realities.
AACSB: Application of knowledge
68) Characterize how proponents of holistic marketing view the importance of internal marketing.
Answer: Proponents of holistic marketing consider internal marketing to be as important as marketing to consumers.
Diff: 2
LO: 1.2: Describe the new marketing realities.
AACSB: Application of knowledge
69) Characterize the ultimate goal of relationship marketing.
Answer: The ultimate outcome of relationship marketing is a unique company asset called a marketing network, consisting of the company and its supporting stakeholders – customers, employees, suppliers, distributors, retailers, and others.
Diff: 3
LO: 1.2: Describe the new marketing realities.
AACSB: Application of knowledge
70) Identify three specific ways globalization has affected the marketing environment.
Answer: New transportation, shipping, and communication technologies have made it easier for us to know the rest of the world, to travel, to buy and sell anywhere. Globalization has made countries increasingly multicultural. U.S. minorities have much economic clout, and their buying power is growing faster than that of the general population. Globalization changes innovation and product development as companies take ideas and lessons from one country and apply them to another.
Diff: 3
LO: 1.2: Describe the new marketing realities.
AACSB: Reflective thinking
71) Discuss the concept of disintermediation and provide an example.
Answer: Disintermediation grew out of the rush to embrace the dot-coms and e-commerce. Essentially, the dot-coms removed many of the traditional intermediaries by encouraging consumers to deal directly with the company via the internet. "Brick-and-click" businesses eventually brought some of the intermediaries back through a process called