Exam 5: Differentiation Advantage

When a company mass-produces the various modules of a product and then allows customers to select which modules will be combined together, it is known as __________.

When products are differentiated by being associated with positive qualities in the minds of customers, they are considered ___.

Purple Inc., an interior design company, offers its clients unique design solutions. Clients can choose from Purple's in-house products, customize them to meet their needs, and see how their home would appear using a 3D visualization software in a mini-theatre at Purple's office. This gives Purple a competitive advantage over its rivals since none of them offer this unique combination of services. Purple's advantage is due to its __________.

Willow Inc., a company that designs and manufactures watches, designs a digital watch allowing users to sync it with their mobile phones. It has a touchscreen, microphone, and Bluetooth device installed in it. The watch is also water-resistant for up to 200 meters. The other general features of the watch remain the same. Which of the following statements is true in this case?

Leo Corp., a mobile manufacturer, attains competitive advantage over its rivals by providing unique features in the phones they manufacture, such as a 3000 mAh battery, facial recognition software, and customized applications. Which of the following is Leo trying to attain through these additional product features?

During the process of mapping the consumption chain of a product, Nina looks at the methods followed by companies which send their engineers to check laptops when they detect that a possible bug could be affecting a system. Which of the following questions does this example address?

When products are differentiated through marketing, via advertisements, promotions, and other marketing activities, it is known as __________.

The research and development department of Chi Inc. studies the buying patterns of its customers. If it starts with the customers in the first step of the consumption chain, which of the following does it most likely study?

What is customer segmentation? Mention the three types of customer segmentation.

Home Shore Inc., an electronics store, provides value to its customers by setting up televisions at customers' homes for free. The company also provides instructional manuals on how to set them up without professional help. Which step of the consumption chain does this scenario depict?

Explain how product features can be used to create differentiation in the market.

Gear-up Inc., an apparel brand, differentiates its products by manufacturing jeans that last longer than those of other brands. The fabric is durable and does not wear out even after years of regular use. This attracts customers despite Gear-up's high prices. Which of the following elements of product differentiation is Gear-up primarily providing?

Briefly discuss the questions that a company must ask in order to figure how to deliver the unique value of a product.

Define mass customization and explain what companies must do in order for this method to be successful.

Frieda, the manager of a retail store, believes that a customer, Jake, is in the selection making stage. Nina, the sales person, believes that Jake is at the stage where he requires help in using the product. Which of the following statements strengthens Frieda's argument?

Leo Foods is an eatery that sells organic food. It opens a number of outlets across the state, creates a website that makes ordering and take-away easy, and also does not charge a delivery fee for its regular customers. Which step of the consumption chain does this scenario depict?

________ occur(s)when some products or services are more convenient to use because there is a large network of other users.

Dave's is a retail chain that offers all utility products ranging from home appliances, stationery, and groceries. Its customers prefer the store as they can buy everything they need under one roof. Dave's has more than a 100 outlets across the state, which makes the store easily accessible for customers easy. These features of Dave's best exemplify the element of __________.

At Red Inc., a retail store, Mark, the manager, maps the consumption chain to understand the buying patterns of the consumers. He has identified how consumers become aware of their needs for products or services. Which of the following is he likely to do next?

The marketing department of a cosmetics brand conducts a research. 40% of its customers said that they prefer the brand because they do not need to reapply the product often, while 30% said that they chose the brand because the products are organic. If the brand segments the customers by the features of the cosmetics they prefer, the segmentation is primarily based on __________.