Question 1

Best-cost provider strategies are appealing in those market situations where

Accepted Answer

A)  diverse buyer preferences make product differentiation the norm and where a large number of value-conscious buyers can be induced to purchase mid-range products. 
B)  a company is positioned between competitors who have ultra-low prices and competitors who have top-notch products in terms of both quality and performance. 
C)  buyers are more quality-conscious than price-conscious. 
D)  there are numerous buyer segments, buyer needs are diverse across these segments, only a few of the segments are growing rapidly, and sellers' products are strongly differentiated. 
E)  buyers are more performance-conscious than value-conscious. 
A)  diverse buyer preferences make product differentiation the norm and where a large number of value-conscious buyers can be induced to purchase mid-range products. 
B)  a company is positioned between competitors who have ultra-low prices and competitors who have top-notch products in terms of both quality and performance. 
C)  buyers are more quality-conscious than price-conscious. 
D)  there are numerous buyer segments, buyer needs are diverse across these segments, only a few of the segments are growing rapidly, and sellers' products are strongly differentiated. 
E)  buyers are more performance-conscious than value-conscious.

Question 2

Which of the following is NOT one of the ways managers can enhance differentiation based on value drivers?

Accepted Answer

A)  striving to create superior product features, design, and performance 
B)  striving for innovation and technological advances 
C)  pursuing continuous quality improvement 
D)  increasing the intensity of marketing, brand building, and sales activities 
E)  seeking out low-quality inputs 
A)  striving to create superior product features, design, and performance 
B)  striving for innovation and technological advances 
C)  pursuing continuous quality improvement 
D)  increasing the intensity of marketing, brand building, and sales activities 
E)  seeking out low-quality inputs

Question 3

Whatever strategic approach is adopted by a company to deliver value, it nearly always requires

Accepted Answer

A)  that management undertake formal planning sessions with functional departments to ensure productivity improvement. 
B)  the identification of strengths and weaknesses within the company. 
C)  matching corporate identity with the corporate culture in order to integrate effort and build sales momentum. 
D)  performing value chain activities differently than rivals and building competitively valuable resources and capabilities that rivals cannot readily match. 
E)  constant efforts to thwart entry of new rivals and their attempts to create differentiated products with unit costs above price premium. 
A)  that management undertake formal planning sessions with functional departments to ensure productivity improvement. 
B)  the identification of strengths and weaknesses within the company. 
C)  matching corporate identity with the corporate culture in order to integrate effort and build sales momentum. 
D)  performing value chain activities differently than rivals and building competitively valuable resources and capabilities that rivals cannot readily match. 
E)  constant efforts to thwart entry of new rivals and their attempts to create differentiated products with unit costs above price premium.

Question 4

Which of the following is one of the pitfalls of a low-cost provider strategy?

Accepted Answer

A)  industry cost leadership 
B)  capturing volume gains and achieving economies of scale 
C)  relying on approaches to reduce costs that can be easily copied 
D)  beneficial and sustainable cost reduction 
E)  development of cost-saving technological breakthrough that cannot be readily adopted by rival firms 
A)  industry cost leadership 
B)  capturing volume gains and achieving economies of scale 
C)  relying on approaches to reduce costs that can be easily copied 
D)  beneficial and sustainable cost reduction 
E)  development of cost-saving technological breakthrough that cannot be readily adopted by rival firms

Question 5

Which of the following is NOT one of the four basic routes to achieving a differentiation-based competitive advantage?

Accepted Answer

A)  delivering value to customers via the company's resources, competencies, and value chain activities that rivals don't have or can't afford to match and are well-matched to the requirements of the strategy 
B)  incorporating tangible features that raise product performance and increase customer satisfaction with the product 
C)  incorporating product attributes and user features that lower the buyer's overall costs of using the company's product 
D)  appealing to buyers who are sophisticated and shop hard for the best, stand-out differentiating attributes 
E)  incorporating features that enhance buyer satisfaction in intangible or noneconomic ways 
A)  delivering value to customers via the company's resources, competencies, and value chain activities that rivals don't have or can't afford to match and are well-matched to the requirements of the strategy 
B)  incorporating tangible features that raise product performance and increase customer satisfaction with the product 
C)  incorporating product attributes and user features that lower the buyer's overall costs of using the company's product 
D)  appealing to buyers who are sophisticated and shop hard for the best, stand-out differentiating attributes 
E)  incorporating features that enhance buyer satisfaction in intangible or noneconomic ways

Question 6

A pitfall to avoid in pursuing a differentiation strategy is

Accepted Answer

A)  trying to differentiate on the basis of attributes or features that are easily and quickly copied. 
B)  choosing a product offering that supports buyers' indifference to rival brands' offerings. 
C)  charging a premium price for the differentiating features. 
D)  meeting and exceeding the meaningful gaps in quality, performance, service, and other attractive differentiating attributes offered by rivals. 
E)  spending on activities to differentiate the company's product to enhance profitability. 
A)  trying to differentiate on the basis of attributes or features that are easily and quickly copied. 
B)  choosing a product offering that supports buyers' indifference to rival brands' offerings. 
C)  charging a premium price for the differentiating features. 
D)  meeting and exceeding the meaningful gaps in quality, performance, service, and other attractive differentiating attributes offered by rivals. 
E)  spending on activities to differentiate the company's product to enhance profitability.

Question 7

A low-cost leader's basis for competitive advantage is

Accepted Answer

A)  lowest possible prices for comparable products. 
B)  a low-cost/moderate price approach to gain the biggest market share. 
C)  high buyer switching costs. 
D)  meaningful lower overall costs than rivals on comparable products. 
E)  higher unit sales than rivals. 
A)  lowest possible prices for comparable products. 
B)  a low-cost/moderate price approach to gain the biggest market share. 
C)  high buyer switching costs. 
D)  meaningful lower overall costs than rivals on comparable products. 
E)  higher unit sales than rivals.

Question 8

What are the distinctive features of a best-cost provider strategy? Under what circumstances is a best-cost provider strategy appealing?

Accepted Answer

Best-cost provider strategies stake out

Question 9

Focusing carries several risks, one of which is the

Accepted Answer

A)  chance that niche customers will bargain more aggressively for good deals than customers in the overall marketplace. 
B)  chance that competitors will find effective ways to match the focused firm's capabilities in serving the target market. 
C)  potential for the segment to be highly vulnerable to economic cycles. 
D)  potential for the segment to become too specialized for other multi-segmented rivals to enter. 
E)  inability of a company to compete industry-wide. 
A)  chance that niche customers will bargain more aggressively for good deals than customers in the overall marketplace. 
B)  chance that competitors will find effective ways to match the focused firm's capabilities in serving the target market. 
C)  potential for the segment to be highly vulnerable to economic cycles. 
D)  potential for the segment to become too specialized for other multi-segmented rivals to enter. 
E)  inability of a company to compete industry-wide.

Question 10

What are the keys to sustaining a focused low-cost strategy?

Accepted Answer

The keys to sustaining a focused low-cos

Question 11

A broad differentiation strategy generally produces the best results in situations where

Accepted Answer

A)  buyer brand loyalty is low. 
B)  few rival firms are following a similar differentiation approach. 
C)  new and improved products are introduced only infrequently. 
D)  most rivals are pursuing a differentiation strategy and are seeking to differentiate their products on most of the same features and attributes. 
E)  perceived value of a product is not of great importance. 
A)  buyer brand loyalty is low. 
B)  few rival firms are following a similar differentiation approach. 
C)  new and improved products are introduced only infrequently. 
D)  most rivals are pursuing a differentiation strategy and are seeking to differentiate their products on most of the same features and attributes. 
E)  perceived value of a product is not of great importance.

Question 12

The objective of a best-cost provider strategy is to

Accepted Answer

A)  deliver superior value to value-conscious buyers at a comparatively lower price than rivals. 
B)  offer buyers the industry's best-performing product at the best cost and best (lowest) price in the industry. 
C)  attract buyers on the basis of having the industry's overall best-performing product at a price that is slightly below the industry-average price. 
D)  out-compete rivals using low-cost provider strategies. 
E)  translate its best-cost status into achieving the highest profit margins of any firm in the industry. 
A)  deliver superior value to value-conscious buyers at a comparatively lower price than rivals. 
B)  offer buyers the industry's best-performing product at the best cost and best (lowest) price in the industry. 
C)  attract buyers on the basis of having the industry's overall best-performing product at a price that is slightly below the industry-average price. 
D)  out-compete rivals using low-cost provider strategies. 
E)  translate its best-cost status into achieving the highest profit margins of any firm in the industry.

Question 13

What are the distinctive features of a focused low-cost strategy? How does it differ from a low-cost leadership strategy?

Accepted Answer

A focused low-cost aims at securing a co

Question 14

Explain how the marketing emphasis of a low-cost provider differs from the marketing emphasis of a best-cost provider.

Accepted Answer

The marketing emphasis of a low cost pro

Question 15

The big danger or risk of a best-cost provider strategy is

Accepted Answer

A)  that buyers will be highly skeptical about paying a relatively low price for upscale attributes/features. 
B)  not establishing strong alliances and partnerships with key suppliers. 
C)  that rivals with low-cost provider strategies will be able to steal away some customers on the basis of a lower price, and high-end differentiators will be able to steal away customers with the appeal of better product attributes. 
D)  that it will be unable to achieve top-notch quality at a rock-bottom cost. 
E)  becoming too highly integrated and not relying enough on outsourcing. 
A)  that buyers will be highly skeptical about paying a relatively low price for upscale attributes/features. 
B)  not establishing strong alliances and partnerships with key suppliers. 
C)  that rivals with low-cost provider strategies will be able to steal away some customers on the basis of a lower price, and high-end differentiators will be able to steal away customers with the appeal of better product attributes. 
D)  that it will be unable to achieve top-notch quality at a rock-bottom cost. 
E)  becoming too highly integrated and not relying enough on outsourcing.

Question 16

Opportunities to differentiate a company's product offering

Accepted Answer

A)  are most reliably found in the R&D portion of the value chain. 
B)  are typically located in the sales and marketing portion of the value chain. 
C)  can exist in activities all along an industry's value chain. 
D)  usually are tied to product quality and customer service. 
E)  are most frequently attached to a company's manufacturing expertise and to its ability to achieve economies of scale in production. 
A)  are most reliably found in the R&D portion of the value chain. 
B)  are typically located in the sales and marketing portion of the value chain. 
C)  can exist in activities all along an industry's value chain. 
D)  usually are tied to product quality and customer service. 
E)  are most frequently attached to a company's manufacturing expertise and to its ability to achieve economies of scale in production.

Question 17

Compare and contrast cost drivers and uniqueness drivers in a company's value chain. Explain how these drivers might support a firm's generic strategy.

Accepted Answer

A cost driver is a factor having a stron

Question 18

In order to be successful with a low-cost leadership strategy, company managers have to

Accepted Answer

A)  eliminate wholesale and retail intermediaries and instead sell directly to users of their product or service. 
B)  perform value chain activities more cost-effectively than rivals and be proactive in revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities. 
C)  outsource the majority of value chain activities to nations that have lower wage rates and fewer regulations. 
D)  develop and market products and services at that absolute lowest possible cost. 
E)  pursue backward or forward integration to deter suppliers or buyers with considerable bargaining power and leverage. 
A)  eliminate wholesale and retail intermediaries and instead sell directly to users of their product or service. 
B)  perform value chain activities more cost-effectively than rivals and be proactive in revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities. 
C)  outsource the majority of value chain activities to nations that have lower wage rates and fewer regulations. 
D)  develop and market products and services at that absolute lowest possible cost. 
E)  pursue backward or forward integration to deter suppliers or buyers with considerable bargaining power and leverage.

Question 19

Perceived value and signaling value are often an important part of a successful differentiation strategy because

Accepted Answer

A)  of the standardization of buyer needs and preferences. 
B)  buyers seldom will pay for value they don't perceive, no matter how real the value of the differentiating extras may be. 
C)  buyer satisfaction cannot be achieved until a product's value is promoted through clever ads. 
D)  differentiation is all about selling products to sophisticated buyers. 
E)  there are no other ways to differentiate a product. 
A)  of the standardization of buyer needs and preferences. 
B)  buyers seldom will pay for value they don't perceive, no matter how real the value of the differentiating extras may be. 
C)  buyer satisfaction cannot be achieved until a product's value is promoted through clever ads. 
D)  differentiation is all about selling products to sophisticated buyers. 
E)  there are no other ways to differentiate a product.

Question 20

What strategy would you recommend for a small-sized company entering a highly segmented market, each segment with a complex set of needs and spending power?

Accepted Answer

A focused low-cost strategy or a focused

Best-cost provider strategies are appealing in those market situations where

Which of the following is NOT one of the ways managers can enhance differentiation based on value drivers?

Whatever strategic approach is adopted by a company to deliver value, it nearly always requires

Which of the following is one of the pitfalls of a low-cost provider strategy?

Which of the following is NOT one of the four basic routes to achieving a differentiation-based competitive advantage?

A pitfall to avoid in pursuing a differentiation strategy is

A low-cost leader's basis for competitive advantage is

What are the distinctive features of a best-cost provider strategy? Under what circumstances is a best-cost provider strategy appealing?

Focusing carries several risks, one of which is the

What are the keys to sustaining a focused low-cost strategy?

A broad differentiation strategy generally produces the best results in situations where

The objective of a best-cost provider strategy is to

What are the distinctive features of a focused low-cost strategy? How does it differ from a low-cost leadership strategy?

Explain how the marketing emphasis of a low-cost provider differs from the marketing emphasis of a best-cost provider.

The big danger or risk of a best-cost provider strategy is

Opportunities to differentiate a company's product offering

Compare and contrast cost drivers and uniqueness drivers in a company's value chain. Explain how these drivers might support a firm's generic strategy.

In order to be successful with a low-cost leadership strategy, company managers have to

Perceived value and signaling value are often an important part of a successful differentiation strategy because

What strategy would you recommend for a small-sized company entering a highly segmented market, each segment with a complex set of needs and spending power?

What Is Strategy and Why Is It Important

Leading the Process of Crafting and Executing Strategy

Evaluating a Companys External Environment

Evaluating a Companys Resources and Competitive Position

Supplementing the Chosen Competitive Strategy: Other Important Business Strategy Choices

Strategies for Competing in Foreign Markets

Diversification: Strategies for Managing a Group of Businesses

Ethical Business Strategies, Social Responsibility, and Environmental Sustainabil ITY

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

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Exam 5: The Five Generic Competitive Strategies: Which One to Employ

Best-cost provider strategies are appealing in those market situations where

Which of the following is NOT one of the ways managers can enhance differentiation based on value drivers?

Whatever strategic approach is adopted by a company to deliver value, it nearly always requires

Which of the following is one of the pitfalls of a low-cost provider strategy?

Which of the following is NOT one of the four basic routes to achieving a differentiation-based competitive advantage?

A pitfall to avoid in pursuing a differentiation strategy is

A low-cost leader's basis for competitive advantage is

What are the distinctive features of a best-cost provider strategy? Under what circumstances is a best-cost provider strategy appealing?

Focusing carries several risks, one of which is the

What are the keys to sustaining a focused low-cost strategy?

A broad differentiation strategy generally produces the best results in situations where

The objective of a best-cost provider strategy is to

What are the distinctive features of a focused low-cost strategy? How does it differ from a low-cost leadership strategy?

Explain how the marketing emphasis of a low-cost provider differs from the marketing emphasis of a best-cost provider.

The big danger or risk of a best-cost provider strategy is

Opportunities to differentiate a company's product offering

Compare and contrast cost drivers and uniqueness drivers in a company's value chain. Explain how these drivers might support a firm's generic strategy.

In order to be successful with a low-cost leadership strategy, company managers have to

Perceived value and signaling value are often an important part of a successful differentiation strategy because

What strategy would you recommend for a small-sized company entering a highly segmented market, each segment with a complex set of needs and spending power?

What Is Strategy and Why Is It Important

Leading the Process of Crafting and Executing Strategy

Evaluating a Companys External Environment

Evaluating a Companys Resources and Competitive Position

Supplementing the Chosen Competitive Strategy: Other Important Business Strategy Choices

Strategies for Competing in Foreign Markets

Diversification: Strategies for Managing a Group of Businesses

Ethical Business Strategies, Social Responsibility, and Environmental Sustainabil ITY

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

Filters