Question 1

A differentiation strategy is based on creating a product that customers perceive as being

Accepted Answer

A)  about the same as other available products. 
B)  distinct. 
C)  the least costly product in the industry. 
D)  the most costly product in the industry. 
E)  somewhat faddish in nature. 
A)  about the same as other available products. 
B)  distinct. 
C)  the least costly product in the industry. 
D)  the most costly product in the industry. 
E)  somewhat faddish in nature.

Question 2

The problem facing differentiators,such as L.L.Bean,is how to protect the distinctiveness of their products from imitators who are constantly searching for ways to steal away customers by offering similar products at lower prices.

Accepted Answer

A) True 
 B)False

Question 3

For any company,building new competencies in the functions that sustain its differentiation means neglecting its cost structure.

Accepted Answer

A) True 
 B)False

Question 4

Market segmentation is an evolving,ongoing process that presents considerable opportunities for strategic managers to improve their company's business model.

Accepted Answer

A) True 
 B)False

Question 5

Generally speaking,a differentiator chooses to divide its market into

Accepted Answer

A)  one generic market. 
B)  two or three major segments. 
C)  niches and segments in which customers will pay premium prices. 
D)  as few segments as possible. 
E)  None of these. 
A)  one generic market. 
B)  two or three major segments. 
C)  niches and segments in which customers will pay premium prices. 
D)  as few segments as possible. 
E)  None of these.

Question 6

A differentiation business model is based on pursuing a set of generic strategies that allows a company to achieve a competitive advantage by creating a product that customers perceive as different or distinct in some important way.

Accepted Answer

A) True 
 B)False

Question 7

When a company produces a wide range of products for different customer groups,it is following a strategy of

Accepted Answer

A)  cost leadership. 
B)  differentiation. 
C)  focus. 
D)  market concentration. 
E)  share building. 
A)  cost leadership. 
B)  differentiation. 
C)  focus. 
D)  market concentration. 
E)  share building.

Question 8

To pursue a successful business model,managers must be careful to ensure that the set of business-level strategies they have formulated and implemented are working in harmony to support each other.

Accepted Answer

A) True 
 B)False

Question 9

Companies are now able to pursue cost leadership and differentiation simultaneously because

Accepted Answer

A)  of the emergence of flexible manufacturing technologies and new information technologies. 
B)  markets have become more homogeneous. 
C)  industries have become consolidated. 
D)  barriers to entry have fallen. 
E)  government regulation has diminished. 
A)  of the emergence of flexible manufacturing technologies and new information technologies. 
B)  markets have become more homogeneous. 
C)  industries have become consolidated. 
D)  barriers to entry have fallen. 
E)  government regulation has diminished.

Question 10

A business model based on differentiation requires a company to

Accepted Answer

A)  make strategic choices that reinforce each other and increase the value of a good or service in the eyes of customers. 
B)  serve several market segments simultaneously to take full advantage of differentiation. 
C)  systematically raise its prices at stipulated times. 
D)  develop a functional organization structure. 
E)  all of these. 
A)  make strategic choices that reinforce each other and increase the value of a good or service in the eyes of customers. 
B)  serve several market segments simultaneously to take full advantage of differentiation. 
C)  systematically raise its prices at stipulated times. 
D)  develop a functional organization structure. 
E)  all of these.

Question 11

Both the way a product is differentiated from other products of its type and the price of the product determine which product a customer chooses to satisfy his or her needs.

Accepted Answer

A) True 
 B)False

Question 12

A cost leader must respond to the strategic moves of its differentiated competitors.

Accepted Answer

A) True 
 B)False

Question 13

A company searching for a successful business model has to group customers according to the similarities or differences in their needs to discover what kinds of products to develop that will best meet the needs of different kinds of customers.

Accepted Answer

A) True 
 B)False

Question 14

A differentiated product is a product that

Accepted Answer

A)  looks different from rival products. 
B)  better satisfies customer needs than rival products do. 
C)  is packaged in a unique and eye-appealing manner. 
D)  always costs more than rival products. 
E)  always costs less than rival products. 
A)  looks different from rival products. 
B)  better satisfies customer needs than rival products do. 
C)  is packaged in a unique and eye-appealing manner. 
D)  always costs more than rival products. 
E)  always costs less than rival products.

Question 15

Differentiation is least effective when it is based on

Accepted Answer

A)  physical features. 
B)  service quality. 
C)  an appeal to the customer's psychological needs. 
D)  reliability. 
E)  product quality. 
A)  physical features. 
B)  service quality. 
C)  an appeal to the customer's psychological needs. 
D)  reliability. 
E)  product quality.

Question 16

Which of the following is not a main approach to market segmentation?

Accepted Answer

A)  Marketing a product targeted toward average or typical customers 
B)  Marketing a product targeted toward most or all of the different market segments 
C)  Making customized products to meet the specific needs of customers 
D)  Making products to meet the specific needs of a narrow group of customers 
E)  Making one product aimed toward a general rather than a specific subset of customers 
A)  Marketing a product targeted toward average or typical customers 
B)  Marketing a product targeted toward most or all of the different market segments 
C)  Making customized products to meet the specific needs of customers 
D)  Making products to meet the specific needs of a narrow group of customers 
E)  Making one product aimed toward a general rather than a specific subset of customers

A differentiation strategy is based on creating a product that customers perceive as being

The problem facing differentiators,such as L.L.Bean,is how to protect the distinctiveness of their products from imitators who are constantly searching for ways to steal away customers by offering similar products at lower prices.

For any company,building new competencies in the functions that sustain its differentiation means neglecting its cost structure.

Market segmentation is an evolving,ongoing process that presents considerable opportunities for strategic managers to improve their company's business model.

Generally speaking,a differentiator chooses to divide its market into

A differentiation business model is based on pursuing a set of generic strategies that allows a company to achieve a competitive advantage by creating a product that customers perceive as different or distinct in some important way.

When a company produces a wide range of products for different customer groups,it is following a strategy of

To pursue a successful business model,managers must be careful to ensure that the set of business-level strategies they have formulated and implemented are working in harmony to support each other.

Companies are now able to pursue cost leadership and differentiation simultaneously because

A business model based on differentiation requires a company to

Both the way a product is differentiated from other products of its type and the price of the product determine which product a customer chooses to satisfy his or her needs.

A cost leader must respond to the strategic moves of its differentiated competitors.

A company searching for a successful business model has to group customers according to the similarities or differences in their needs to discover what kinds of products to develop that will best meet the needs of different kinds of customers.

A differentiated product is a product that

Differentiation is least effective when it is based on

Which of the following is not a main approach to market segmentation?

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters

Exam 5: Building Competitive Advantage Through Business-Level Strategy

A differentiation strategy is based on creating a product that customers perceive as being

The problem facing differentiators,such as L.L.Bean,is how to protect the distinctiveness of their products from imitators who are constantly searching for ways to steal away customers by offering similar products at lower prices.

For any company,building new competencies in the functions that sustain its differentiation means neglecting its cost structure.

Market segmentation is an evolving,ongoing process that presents considerable opportunities for strategic managers to improve their company's business model.

Generally speaking,a differentiator chooses to divide its market into

A differentiation business model is based on pursuing a set of generic strategies that allows a company to achieve a competitive advantage by creating a product that customers perceive as different or distinct in some important way.

When a company produces a wide range of products for different customer groups,it is following a strategy of

To pursue a successful business model,managers must be careful to ensure that the set of business-level strategies they have formulated and implemented are working in harmony to support each other.

Companies are now able to pursue cost leadership and differentiation simultaneously because

A business model based on differentiation requires a company to

Both the way a product is differentiated from other products of its type and the price of the product determine which product a customer chooses to satisfy his or her needs.

A cost leader must respond to the strategic moves of its differentiated competitors.

A company searching for a successful business model has to group customers according to the similarities or differences in their needs to discover what kinds of products to develop that will best meet the needs of different kinds of customers.

A differentiated product is a product that

Differentiation is least effective when it is based on

Which of the following is not a main approach to market segmentation?

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters