Exam 5: Differentiation Advantage

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

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 _____.

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

When firms rely on brand image to differentiate products,some of them associate their products with positive qualities in the minds of customers.These are known as _____.

A strategy whereby companies attempt to gain competitive advantage by offering value that is not available in other products or services is known as _____.

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?

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?

Rita lives in a dorm with other students of her college.She hesitates to buy furniture owing to lack of space.She wants to buy a new study desk,one that can easily fold away and be dismantled so that it doesn't occupy much space when not in use.What is Rita's main concern?

Which of the following products best exemplifies reliability?

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?

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

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?

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?

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

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?

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

Mention the general environmental factors that can affect the profit potential of a firm.Briefly explain the factors of technological change and social/cultural forces.

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?

What are the three ways in which product features can be offered for the purpose of differentiation? Answer: The following are the three ways in which product features can be offered. 1.The product does a "better job" of meeting a customer need on existing product features. 2.The product does "more jobs" for a customer than other products. 3.The product does a "unique job" that nothing else does. Level of Difficulty: Moderate

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 _____.