Question 1

Which of the following questions denotes the last step in a consumption chain?

Accepted Answer

A) How do consumers find your offering? 
B) How is your product stored/moved around? 
C) How is your product repaired, serviced, or disposed of? 
D) How is your product/service delivered? 
A) How do consumers find your offering? 
B) How is your product stored/moved around? 
C) How is your product repaired, serviced, or disposed of? 
D) How is your product/service delivered? C

Question 2

Peter always buys shoes from Brown Boot's Inc., although other brands offering shoes of same quality are available closer to home and at lower prices. Brown Boots differentiates itself through a strong brand image. Their advertisements associate the brand with class, style, and elegance. Which of the following is a likely reason for Peter's preference toward Brown Boot's?

Accepted Answer

A) Quality 
B) Reliability 
C) Convenience 
D) Prestige 
A) Quality 
B) Reliability 
C) Convenience 
D) Prestige D

Question 3

Juan, the manager of Pvari, a chain of jewelry stores, claims that mass customization is the best way to create value for their products. Nate, the senior designer, believes that every product must be customized from the pre-production stage. Which of the following statements will strengthen Juan's claim?

Accepted Answer

A) Designers feel their creative skills will be underutilized in mass production. 
B) The production costs will reduce to half if products are made in large scale. 
C) Customers love the idea of designing their own jewelry from scratch. 
D) Their clientele includes a niche group that prefers highly customized products. 
A) Designers feel their creative skills will be underutilized in mass production. 
B) The production costs will reduce to half if products are made in large scale. 
C) Customers love the idea of designing their own jewelry from scratch. 
D) Their clientele includes a niche group that prefers highly customized products. B

Question 4

Firms use convenience as a source of differentiation advantage by __________.

Accepted Answer

A) making a product easier to find and purchase 
B) promoting a product through advertisements and promotions 
C) making a product identical to other products on the market 
D) selling their products only in the company's exclusive stores 
A) making a product easier to find and purchase 
B) promoting a product through advertisements and promotions 
C) making a product identical to other products on the market 
D) selling their products only in the company's exclusive stores

Question 5

What is meant by mapping the consumption chain?

Accepted Answer

A) Differentiating products by associating them with positive qualities in the minds of customers 
B) Grouping customers based on similar needs 
C) Identifying all the steps through which customers pass, from the time they first become aware of a product to the time they have to dispose it 
D) Differentiating products through marketing via advertisements, promotions, and other marketing activities 
A) Differentiating products by associating them with positive qualities in the minds of customers 
B) Grouping customers based on similar needs 
C) Identifying all the steps through which customers pass, from the time they first become aware of a product to the time they have to dispose it 
D) Differentiating products through marketing via advertisements, promotions, and other marketing activities

Question 6

Network effect occurs when some products or services are more convenient to use because there is a ___ of other users.

Accepted Answer

The answer of Network effect occurs when some products or...

Question 7

Which of the following is a characteristic of network effects?

Accepted Answer

A) They cannot be reproduced by competitors. 
B) They make a service more convenient to use. 
C) They offer customers the satisfaction of owning a unique product. 
D) They add more value to a product when the product has few customers. 
A) They cannot be reproduced by competitors. 
B) They make a service more convenient to use. 
C) They offer customers the satisfaction of owning a unique product. 
D) They add more value to a product when the product has few customers.

Question 8

Companies focus most on establishing brand image when _________.

Accepted Answer

A) they can differentiate their products based on their features 
B) the quality of their products is higher than that of others in the market 
C) the familiarity principle doesn't work for their products 
D) they have trouble differentiating their product based on convenience 
A) they can differentiate their products based on their features 
B) the quality of their products is higher than that of others in the market 
C) the familiarity principle doesn't work for their products 
D) they have trouble differentiating their product based on convenience

Question 9

What is brand image and when does a company make use of this product differentiation method?

Accepted Answer

Brand image refers to the perception of

Question 10

When do companies often turn to brand image as a source of differentiation advantage?

Accepted Answer

A) When their products have achieved top-of-mind awareness in their customers 
B) When there is difficulty differentiating products based upon features, reliability, or convenience 
C) When their products or services have the largest network of loyal customers in the industry 
D) When they produce services that are more reliable than the services of their competitors 
A) When their products have achieved top-of-mind awareness in their customers 
B) When there is difficulty differentiating products based upon features, reliability, or convenience 
C) When their products or services have the largest network of loyal customers in the industry 
D) When they produce services that are more reliable than the services of their competitors

Question 11

Sasha, the marketing head of a firm, believes that customers hire products to do jobs for them and that these jobs should be the basis for market segmentation. In this case, which of the following is Sasha likely to approve?

Accepted Answer

A) Segmentation based on age and gender of end consumers. 
B) Segmentation based on features such as durability and quality. 
C) Segmentation based on the functions provided by a product. 
D) Segmentation based on socio-economic factors of customers. 
A) Segmentation based on age and gender of end consumers. 
B) Segmentation based on features such as durability and quality. 
C) Segmentation based on the functions provided by a product. 
D) Segmentation based on socio-economic factors of customers.

Question 12

Kiara states that, as a customer, the pen she had recently purchased was a very convenient product. In terms of product differentiation, which of the following is Kiara most likely to denote?

Accepted Answer

A) The pen lasted longer than pens by other brands. 
B) The pen came in different colors and shapes. 
C) The pen was made with high-quality plastic. 
D) The pen was easier to purchase than other products. 
A) The pen lasted longer than pens by other brands. 
B) The pen came in different colors and shapes. 
C) The pen was made with high-quality plastic. 
D) The pen was easier to purchase than other products.

Question 13

Floyd Inc., a manufacturer of washing machines, encourages customers to choose their brand through extensive marketing. Features of Floyd's products are compared with those of other brands, and customers are made to see the benefits they get from purchasing Floyd's products. Which step of the consumption chain does this scenario depict?

Accepted Answer

A) The eighth step: what do customers need help with when they use your product? 
B) The ninth step: what if customers aren't satisfied and need a return or exchange? 
C) The third step: how do consumers make their final selections? 
D) The fourth step: how do customers order and purchase your product? 
A) The eighth step: what do customers need help with when they use your product? 
B) The ninth step: what if customers aren't satisfied and need a return or exchange? 
C) The third step: how do consumers make their final selections? 
D) The fourth step: how do customers order and purchase your product?

Question 14

Crimson Corp., designs its products based on demographics of its customers. Jaded Inc. designs its products based on product attributes. Which of the following is likely to be true in this case?

Accepted Answer

A) Crimson is likely to consider reliability of products as the primary factor for customer segmentation. 
B) Crimson is unlikely to consider customizability of products as the primary factor for customer segmentation. 
C) Jaded is likely to consider income level of customers as the primary factor for customer segmentation. 
D) Jaded is unlikely to consider quality of products as the primary factor for customer segmentation. 
A) Crimson is likely to consider reliability of products as the primary factor for customer segmentation. 
B) Crimson is unlikely to consider customizability of products as the primary factor for customer segmentation. 
C) Jaded is likely to consider income level of customers as the primary factor for customer segmentation. 
D) Jaded is unlikely to consider quality of products as the primary factor for customer segmentation.

Question 15

Tangerine Inc. differentiates its products by building a brand image, whereas Cloud Inc. does not rely on brand image to differentiate its products. Which of the following statements is likely to be true in this case?

Accepted Answer

A) Tangerine is likely to rely on product features to attract customers. 
B) Tangerine is likely to use advertisements to differentiate its products. 
C) Cloud is likely to use promotional tools to increase market share. 
D) Cloud is unlikely to rely on reliability to boost sales. 
A) Tangerine is likely to rely on product features to attract customers. 
B) Tangerine is likely to use advertisements to differentiate its products. 
C) Cloud is likely to use promotional tools to increase market share. 
D) Cloud is unlikely to rely on reliability to boost sales.

Question 16

Which of the following is necessary for a product to be considered reliable?

Accepted Answer

A) It needs to do a better job as far as performance on existing features is concerned. 
B) It needs to do more jobs than products offered by other firms in the market. 
C) It needs to last longer than products offered by other firms in the market. 
D) It needs to offer unique functions and features that no other firm offers. 
A) It needs to do a better job as far as performance on existing features is concerned. 
B) It needs to do more jobs than products offered by other firms in the market. 
C) It needs to last longer than products offered by other firms in the market. 
D) It needs to offer unique functions and features that no other firm offers.

Question 17

Why do many people prefer prestige brands over other products in the same industry?

Accepted Answer

A) They always come with a longer warranty. 
B) They help them feel part of an elite group or "club." 
C) They are almost always manufactured in specialized plants with highly-skilled workers. 
D) They are functionally superior products which can be purchased at a much lower price. 
A) They always come with a longer warranty. 
B) They help them feel part of an elite group or "club." 
C) They are almost always manufactured in specialized plants with highly-skilled workers. 
D) They are functionally superior products which can be purchased at a much lower price.

Question 18

Identify a true statement about the Net Promoter Score.

Accepted Answer

A) It is a tool used to assess a business model. 
B) It is used to measure the brand image of a product. 
C) It is used to build resources and capabilities to deliver value. 
D) It is a useful tool for assessing customer satisfaction. 
A) It is a tool used to assess a business model. 
B) It is used to measure the brand image of a product. 
C) It is used to build resources and capabilities to deliver value. 
D) It is a useful tool for assessing customer satisfaction.

Question 19

Which of the following products best exemplifies reliability?

Accepted Answer

A) A computer that has greater processing speed than others in the market. 
B) A phone that offers the unique function of face recognition. 
C) A washing machine that works optimally for many years. 
D) An air conditioner that detects movement automatically. 
A) A computer that has greater processing speed than others in the market. 
B) A phone that offers the unique function of face recognition. 
C) A washing machine that works optimally for many years. 
D) An air conditioner that detects movement automatically.

Question 20

A product is said to be differentiated by quality or reliability when _________.

Accepted Answer

A) it gives customers a certain feeling or idea 
B) it is easily available when the customer needs or wants it 
C) it does a better job on features available in other products 
D) it does the same job as other products, but does it for longer 
A) it gives customers a certain feeling or idea 
B) it is easily available when the customer needs or wants it 
C) it does a better job on features available in other products 
D) it does the same job as other products, but does it for longer

Which of the following questions denotes the last step in a consumption chain?

Firms use convenience as a source of differentiation advantage by __________.

What is meant by mapping the consumption chain?

Network effect occurs when some products or services are more convenient to use because there is a ___ of other users.

Which of the following is a characteristic of network effects?

Companies focus most on establishing brand image when _________.

What is brand image and when does a company make use of this product differentiation method?

When do companies often turn to brand image as a source of differentiation advantage?

Sasha, the marketing head of a firm, believes that customers hire products to do jobs for them and that these jobs should be the basis for market segmentation. In this case, which of the following is Sasha likely to approve?

Kiara states that, as a customer, the pen she had recently purchased was a very convenient product. In terms of product differentiation, which of the following is Kiara most likely to denote?

Crimson Corp., designs its products based on demographics of its customers. Jaded Inc. designs its products based on product attributes. Which of the following is likely to be true in this case?

Tangerine Inc. differentiates its products by building a brand image, whereas Cloud Inc. does not rely on brand image to differentiate its products. Which of the following statements is likely to be true in this case?

Which of the following is necessary for a product to be considered reliable?

Why do many people prefer prestige brands over other products in the same industry?

Identify a true statement about the Net Promoter Score.

Which of the following products best exemplifies reliability?

A product is said to be differentiated by quality or reliability when _________.

What Is Business Strategy

Analysis of the External Environment: Opportunities and Threats

Internal Analysis: Strengths, Weaknesses and Competitive Advantage

Cost Advantage

Corporate Strategy

Vertical Integration and Outsourcing

Strategic Alliances

International Strategy

Innovative Strategies That Change the Nature of Competition

Competitive Strategy

Implementing Strategy

Corporate Governance and Ethics

Strategy and Society

Filters

Exam 5: Differentiation Advantage

Which of the following questions denotes the last step in a consumption chain?

Firms use convenience as a source of differentiation advantage by __________.

What is meant by mapping the consumption chain?

Network effect occurs when some products or services are more convenient to use because there is a ___ of other users.

Which of the following is a characteristic of network effects?

Companies focus most on establishing brand image when _________.

What is brand image and when does a company make use of this product differentiation method?

When do companies often turn to brand image as a source of differentiation advantage?

Sasha, the marketing head of a firm, believes that customers hire products to do jobs for them and that these jobs should be the basis for market segmentation. In this case, which of the following is Sasha likely to approve?

Kiara states that, as a customer, the pen she had recently purchased was a very convenient product. In terms of product differentiation, which of the following is Kiara most likely to denote?

Crimson Corp., designs its products based on demographics of its customers. Jaded Inc. designs its products based on product attributes. Which of the following is likely to be true in this case?

Tangerine Inc. differentiates its products by building a brand image, whereas Cloud Inc. does not rely on brand image to differentiate its products. Which of the following statements is likely to be true in this case?

Which of the following is necessary for a product to be considered reliable?

Why do many people prefer prestige brands over other products in the same industry?

Identify a true statement about the Net Promoter Score.

Which of the following products best exemplifies reliability?

A product is said to be differentiated by quality or reliability when _________.

What Is Business Strategy

Analysis of the External Environment: Opportunities and Threats

Internal Analysis: Strengths, Weaknesses and Competitive Advantage

Cost Advantage

Corporate Strategy

Vertical Integration and Outsourcing

Strategic Alliances

International Strategy

Innovative Strategies That Change the Nature of Competition

Competitive Strategy

Implementing Strategy

Corporate Governance and Ethics

Strategy and Society

Filters