Question 1

According to the law of experience,unit costs cannot be predicted,but they can be reduced.

Accepted Answer

A) True 
 B)False  False

Question 2

Computing the experience curve most likely helps a marketer to ________.

Accepted Answer

A)  predict a product's life cycle stage 
B)  retain loyal business customers 
C)  develop a pricing strategy 
D)  improve a mature product 
A)  predict a product's life cycle stage 
B)  retain loyal business customers 
C)  develop a pricing strategy 
D)  improve a mature product C

Question 3

An experience curve is primarily dependent on the ________.

Accepted Answer

A)  product life cycle 
B)  marketing mix 
C)  industry 
D)  economy 
A)  product life cycle 
B)  marketing mix 
C)  industry 
D)  economy C

Question 4

What is an experience curve? What methods can a firm use to improve its experience curve?

Accepted Answer

According to the experience curve,costs

Question 5

Which of the following is a true statement about the experience curve and its effects?

Accepted Answer

A)  Unit costs are predictable. 
B)  Cost reductions are automatic. 
C)  Unit costs vary with exchange rates. 
D)  Growth occurs in all manufacturing segments. 
A)  Unit costs are predictable. 
B)  Cost reductions are automatic. 
C)  Unit costs vary with exchange rates. 
D)  Growth occurs in all manufacturing segments.

Question 6

According to the law of experience,unit costs decline by ________ each time cumulative output ________.

Accepted Answer

A)  one-half; doubles 
B)  a fixed percent; doubles 
C)  a varying percent; triples 
D)  one-third; increases at an equal rate 
A)  one-half; doubles 
B)  a fixed percent; doubles 
C)  a varying percent; triples 
D)  one-third; increases at an equal rate

Question 7

As manufacturing outputs increase,unit prices decrease.This is called the ________.

Accepted Answer

A)  penetration cost 
B)  experience curve 
C)  demand curve 
D)  skimming price 
A)  penetration cost 
B)  experience curve 
C)  demand curve 
D)  skimming price

Question 8

Which of the following is LEAST likely to affect the experience curve?

Accepted Answer

A)  technical progress 
B)  labor redesign 
C)  specialization 
D)  segmentation 
A)  technical progress 
B)  labor redesign 
C)  specialization 
D)  segmentation

Question 9

According to the text,which industry would have the greatest reduction in unit costs based on its experience curve rate?

Accepted Answer

A)  personal computer 
B)  microprocessor 
C)  automobile 
D)  airline 
A)  personal computer 
B)  microprocessor 
C)  automobile 
D)  airline

Question 10

The experience curve concept is especially important to firms that pursue a strategy of ________.

Accepted Answer

A)  brand loyalty 
B)  industry alliance 
C)  niche marketing 
D)  cost leadership 
A)  brand loyalty 
B)  industry alliance 
C)  niche marketing 
D)  cost leadership

Question 11

A firm with a higher market share will most likely experience a higher return on investment.

Accepted Answer

A) True 
 B)False

Question 12

A firm's profitability depends on experience curve effects.

Accepted Answer

A) True 
 B)False

Exam 10: Note : Experience Curve Effects on Cost Reduction

According to the law of experience,unit costs cannot be predicted,but they can be reduced.

Computing the experience curve most likely helps a marketer to ________.

An experience curve is primarily dependent on the ________.

What is an experience curve? What methods can a firm use to improve its experience curve?

Which of the following is a true statement about the experience curve and its effects?

According to the law of experience,unit costs decline by ________ each time cumulative output ________.

As manufacturing outputs increase,unit prices decrease.This is called the ________.

Which of the following is LEAST likely to affect the experience curve?

According to the text,which industry would have the greatest reduction in unit costs based on its experience curve rate?

The experience curve concept is especially important to firms that pursue a strategy of ________.

A firm with a higher market share will most likely experience a higher return on investment.

A firm's profitability depends on experience curve effects.

Overview of Marketing Strategy the Strategic Marketing Process

Situation Assessment - the External Environment

Situation Assessment - the Company

Strategy Formation

Implementation

Planning,assessment,and Adjustment

Note : Market Definition

Note : Context: Pest Analysis

Note : Customer Assessment - Trends and Insights

Note : Consumer and Organizational Buyer Behavior

Note : Competitor Analysis - Competitive Intelligence

Note : Company Assessment - Missions and Visions

Note : Company Assessment - the Value Chain

Note : Industry Analysis

Note : the Product Life Cycle

Note : Economies and Diseconomies of Scale

Note : Economies of Scope-Synergies and Virtuous Circles

Note : Market-Share Effects

Note : Scenario Analysis

Note : the Marketing Concept

Note : What Is a Marketing Strategy

Note : Generic Strategies - Advantage and Scope

Note : Generic Strategies - the Value Map

Note : Generic Strategies - Product-Market Growth Strategies

Note : Specific Marketing Strategies

Note : Market Segmentation

Note : Loyalty-Based Marketing,customer Acquisition,and Customer Retention

Note : Customer Lifetime Value

Note : Competitive Advantages

Note : Swot Analysis

Note : Targeting

Note : Positioning

Note : Customer-Oriented Market Research

Note : Brands and Branding

Note : Products - New Product Development

Note : Products - Innovations

Note : Products - Product Portfolios

Note : Pricing Strategies

Note : Promotion and People - Integrated Marketing Communications

Note : Place - Distribution

Note : Budgets,forecasts,and Objectives

Note : Staircase Analysis

Note : Assessment and Adjustment

Filters

According to the law of experience,unit costs decline by each time cumulative output .