Question 1

Which of the following ways can be used by companies to influence a consumer's product selection process?

Accepted Answer

A) Imitating the product design of a successful brand 
B) Making the product easier to find and purchase 
C) Designing products to signal the user when they are no longer effective and have to be replaced 
D) Providing customers with side-by-side comparisons of their products with those of competitors 
A) Imitating the product design of a successful brand 
B) Making the product easier to find and purchase 
C) Designing products to signal the user when they are no longer effective and have to be replaced 
D) Providing customers with side-by-side comparisons of their products with those of competitors

Question 2

Marketers typically segment markets based on __________.

Accepted Answer

A) the production capacity of a firm 
B) various attributes or the price of products 
C) the number of competitors in the market 
D) network effects that make products convenient to use 
A) the production capacity of a firm 
B) various attributes or the price of products 
C) the number of competitors in the market 
D) network effects that make products convenient to use

Question 3

In terms of product differentiation, convenience refers to ________.

Accepted Answer

A) how long a product functions optimally 
B) how unique a product is when compared to others 
C) how efficient a product is in meeting consumers' primary needs 
D) how easy it is for customers to purchase a product 
A) how long a product functions optimally 
B) how unique a product is when compared to others 
C) how efficient a product is in meeting consumers' primary needs 
D) how easy it is for customers to purchase a product

Question 4

Kim, a consumer, is in the final stage of selecting a product. Which of the following is true if her actions follow the typical consumption chain?

Accepted Answer

A) Kim is unlikely to have become aware of her need for a product yet. 
B) Kim is likely to be persuaded by the product attributes at this stage. 
C) Service providers are likely to assist Kim in helping her use the product. 
D) Service providers are likely to detect faults with the performance of the product. 
A) Kim is unlikely to have become aware of her need for a product yet. 
B) Kim is likely to be persuaded by the product attributes at this stage. 
C) Service providers are likely to assist Kim in helping her use the product. 
D) Service providers are likely to detect faults with the performance of the product.

Question 5

Suede Inc., a company that manufactures bags, makes extensive use of advertising to compete in the market. The features of its product are similar to existing products in the market. It uses other promotional tools such as discounts, coupons, and rebates to increase its customer base. In this scenario, which of the following elements does Suede rely on to differentiate its products?

Accepted Answer

A) Product reliability 
B) Convenience 
C) Brand image 
D) Quality 
A) Product reliability 
B) Convenience 
C) Brand image 
D) Quality

Question 6

Explain product differentiation.

Accepted Answer

Product differentiation is the process o

Question 7

Ochre Inc. manufactures accessories such as belts, bags, and shoes. It produces the basic models of all these items on large scale. However, customers can customize these products by choosing embellishments of their choice, such as zippers, straps, and buckles. Ochre's manufacturing process best exemplifies __________.

Accepted Answer

A) mass optimization 
B) mass customization 
C) mass consumerism 
D) mass production 
A) mass optimization 
B) mass customization 
C) mass consumerism 
D) mass production

Question 8

Zeal Inc. launches a new software application. The application doesn't offer any new features but is cheap compared to others in the market. However, because of its low price, customers benefit from network effects. The application often crashes due to bugs in the software. Which of the following is likely to be true in this case?

Accepted Answer

A) Zeal's new product is an example of customization. 
B) The users of the product can contact other users for queries. 
C) Zeal's new product is likely to be considered reliable although not convenient. 
D) The customers are likely to purchase it for the unique job the product does. 
A) Zeal's new product is an example of customization. 
B) The users of the product can contact other users for queries. 
C) Zeal's new product is likely to be considered reliable although not convenient. 
D) The customers are likely to purchase it for the unique job the product does.

Question 9

What are the three ways in which product features can be offered for the purpose of differentiation?

Accepted Answer

Product differentiation is a marketing s

Question 10

Time-Threads Inc. sells storage devices, such as memory cards, thumb drives, and external hard disks. Which of the following is most likely true if it achieves product differentiation by designing its products to perform more jobs than its competitors?

Accepted Answer

A) Its thumb drives come with a tracker to help users locate them. 
B) Its memory cards offer more space than most others in the market. 
C) Its hard disks are designed for quicker copying of files from various mediums. 
D) Its instructions manuals are printed in more languages than its competitors. 
A) Its thumb drives come with a tracker to help users locate them. 
B) Its memory cards offer more space than most others in the market. 
C) Its hard disks are designed for quicker copying of files from various mediums. 
D) Its instructions manuals are printed in more languages than its competitors.

Question 11

Tina prefers buying products for the emotional dimension of the job they perform rather than its functional attributes. Jay prefers to buy products for the social dimension of the job they do rather than its functional or emotional attributes. In this case, which of the following is most likely to be true?

Accepted Answer

A) Tina buys a bike because of its low rate of fuel consumption. 
B) Tina buys an original painting by her favorite artist even though it is not in good condition. 
C) Jay buys a car he loves even though his friends think it does not look classy. 
D) Jay buys a piece of furniture that allows more storage space despite it looking odd. 
A) Tina buys a bike because of its low rate of fuel consumption. 
B) Tina buys an original painting by her favorite artist even though it is not in good condition. 
C) Jay buys a car he loves even though his friends think it does not look classy. 
D) Jay buys a piece of furniture that allows more storage space despite it looking odd.

Question 12

Which of the following is a source of differentiation advantage?

Accepted Answer

A) More convenient to find, purchase, or use 
B) Reduced quality or reliability 
C) Manufacturing products with similar features 
D) Manufacturing different products for each feature 
A) More convenient to find, purchase, or use 
B) Reduced quality or reliability 
C) Manufacturing products with similar features 
D) Manufacturing different products for each feature

Question 13

How do companies pursuing customer segmentation as a differentiation strategy become successful?

Accepted Answer

A) By grouping customers based on similar needs 
B) By designing a specific product for each customer 
C) By creating products that meet the needs of their entire customer base 
D) By allowing customers to customize their products based on their individual preferences 
A) By grouping customers based on similar needs 
B) By designing a specific product for each customer 
C) By creating products that meet the needs of their entire customer base 
D) By allowing customers to customize their products based on their individual preferences

Question 14

Saturn Inc., a manufacturer of home appliances, familiarizes customers with its products through advertising. Apart from attracting new customers, it offers quick demos in mass media that assist existing customers. Which of the following stages in the consumption chain is depicted in this scenario?

Accepted Answer

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

Question 15

Identify a true statement about product differentiation.

Accepted Answer

A) When the perceived value of a product increases in the mind of the customer, it also increases the customer's willingness to pay a higher price. 
B) Companies that invest resources to create unique features in their products often charge a lower price. 
C) It exists only when the products of two different companies are different in terms of technical features. 
D) It is a strategy whereby companies attempt to gain advantage by producing similar products in bulk to reduce costs. 
A) When the perceived value of a product increases in the mind of the customer, it also increases the customer's willingness to pay a higher price. 
B) Companies that invest resources to create unique features in their products often charge a lower price. 
C) It exists only when the products of two different companies are different in terms of technical features. 
D) It is a strategy whereby companies attempt to gain advantage by producing similar products in bulk to reduce costs.

Question 16

Identify a way in which companies can differentiate their products based on features.

Accepted Answer

A) By offering customers a feeling of prestige upon using their products 
B) By making their products easily available to customers 
C) By designing products to be customizable by customers 
D) By designing products of superior quality compared to others in the market 
A) By offering customers a feeling of prestige upon using their products 
B) By making their products easily available to customers 
C) By designing products to be customizable by customers 
D) By designing products of superior quality compared to others in the market

Question 17

Whenever customers of Black Inc., a mobile manufacturer, have a complaint to make about a product not being up to the mark, the company makes it a point to contact the customer or even go to their homes to understand the issue. The company believes that this will help retain customers and create better products. Which step of the consumption chain is this scenario depicting?

Accepted Answer

A) The third step: how do consumers make their final selections? 
B) The fifth step: how is your product/service delivered? 
C) The sixth step: how is your product/service paid for? 
D) The ninth step: what if customers aren't satisfied and need a return or exchange? 
A) The third step: how do consumers make their final selections? 
B) The fifth step: how is your product/service delivered? 
C) The sixth step: how is your product/service paid for? 
D) The ninth step: what if customers aren't satisfied and need a return or exchange?

Question 18

___ is grouping customers based on similar needs.

Accepted Answer

Customer s

Question 19

________ requires acquiring and allocating resources.

Accepted Answer

A) Segmentation of the market 
B) Mapping the consumption chain 
C) Building the capacity to deliver unique value 
D) Analyzing a company's differentiation strategy 
A) Segmentation of the market 
B) Mapping the consumption chain 
C) Building the capacity to deliver unique value 
D) Analyzing a company's differentiation strategy

Question 20

Tracie, the CEO of Boney's Inc., wanted to analyze what customers think of their products. She began her survey by finding out how her customers become aware of their needs, how they find the products, how they purchase products, and how the products are serviced or repaired. These steps are part of ________.

Accepted Answer

A) mapping the consumption chain 
B) studying the value chain 
C) studying the production cycle 
D) mapping the supply chain 
A) mapping the consumption chain 
B) studying the value chain 
C) studying the production cycle 
D) mapping the supply chain

Which of the following ways can be used by companies to influence a consumer's product selection process?

Marketers typically segment markets based on __________.

In terms of product differentiation, convenience refers to ________.

Kim, a consumer, is in the final stage of selecting a product. Which of the following is true if her actions follow the typical consumption chain?

Explain product differentiation.

What are the three ways in which product features can be offered for the purpose of differentiation?

Time-Threads Inc. sells storage devices, such as memory cards, thumb drives, and external hard disks. Which of the following is most likely true if it achieves product differentiation by designing its products to perform more jobs than its competitors?

Which of the following is a source of differentiation advantage?

How do companies pursuing customer segmentation as a differentiation strategy become successful?

Saturn Inc., a manufacturer of home appliances, familiarizes customers with its products through advertising. Apart from attracting new customers, it offers quick demos in mass media that assist existing customers. Which of the following stages in the consumption chain is depicted in this scenario?

Identify a true statement about product differentiation.

Identify a way in which companies can differentiate their products based on features.

___ is grouping customers based on similar needs.

________ requires acquiring and allocating resources.

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 ways can be used by companies to influence a consumer's product selection process?

Marketers typically segment markets based on __________.

In terms of product differentiation, convenience refers to ________.

Kim, a consumer, is in the final stage of selecting a product. Which of the following is true if her actions follow the typical consumption chain?

Explain product differentiation.

What are the three ways in which product features can be offered for the purpose of differentiation?

Time-Threads Inc. sells storage devices, such as memory cards, thumb drives, and external hard disks. Which of the following is most likely true if it achieves product differentiation by designing its products to perform more jobs than its competitors?

Which of the following is a source of differentiation advantage?

How do companies pursuing customer segmentation as a differentiation strategy become successful?

Saturn Inc., a manufacturer of home appliances, familiarizes customers with its products through advertising. Apart from attracting new customers, it offers quick demos in mass media that assist existing customers. Which of the following stages in the consumption chain is depicted in this scenario?

Identify a true statement about product differentiation.

Identify a way in which companies can differentiate their products based on features.

___ is grouping customers based on similar needs.

________ requires acquiring and allocating resources.

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