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CHAPTER 3 THE CHANGING MARKETING ENVIRONMENT MULTIPLE CHOICE QUESTIONS 3-1 CHAPTER OPENING EXAMPLE: NAPSTER CONCEPTUAL Changes in _____ forces led to the creation and rapid growth of Internet-based music file- sharing services. a. technological and economic b. social and technological c. competitive and economic d. regulatory and technology e. regulatory and economic Answer: b Page: 73 Rationale: Consumers' ideas about shopping changed. As described in the opening vignette, technology changed to make ripping possible. Discretionary income was plentiful and was not an issue at the inception of music-swapping services. 3-2 CHAPTER OPENING EXAMPLE: NAPSTER APPLICATION The joint development of MusicNet, a pay-for-play services, founded by RealNetworks Inc. and three major recording labels (Warner Music, Bertelsmann and EMI) was one way the music industry countered the revenue loss as a result of Internet-based music file-sharing services. This strategic alliance indicates how _____ forces can change the marketplace. a. economic b. regulatory c. competitive d. cultural e. ecological Answer: c Page: 73-74 Rationale: Such consortia were considered impossible before the Internet. Today it is common for competitors to work together to deal with the different types of competition created by the Internet. 131
3-3 ENVIRONMENTAL SCANNING DEFINITION _____ is the process of continually acquiring information on events occurring outside the organization in order to identify and interpret potential trends. a. Outsourcing b. Competitive intelligence gathering c. Company protection d. Business modeling e. Environmental scanning Answer: e Page: 74 Other Locations: W Rationale: Trends typically arise from five source included in an environmental scan: social, economic, technological, competitive, and regulatory forces. 3-4 ENVIRONMENTAL SCANNING DEFINITION A company engaged in environmental scanning is: a. taking into account the effect its marketing activities can have on plants and animals in our environment. b. continually acquiring information on events occurring outside the organization to identify and interpret potential trends. c. maintaining a time constant horizon in its strategic planning process. d. maintaining retail customer databases. e. requiring all employees to spend time outside the office to avoid the "ivory tower" syndrome. Answer: b Page: 74 Rationale: Key term definition—environmental scanning 3-5 ENVIRONMENTAL SCANNING APPLICATION A marketing manager for United Way reads in a business journal that despite the Internet and television, Americans are actively engaged in their communities. Fifty-four percent have performed volunteer work and 78 percent have donated money to charities. She asks research and development personnel to identify possible new ad campaigns that will encourage this high levels of community-connectedness to continue. This ad campaign change is the result of the managerial activity: a. ecological/technological forecasting.
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