Question 1

Companies focus most on establishing brand image when:

Accepted Answer

A)  they can differentiate their products based on their features. 
B)  the quality of their products is higher than that of others in the market. 
C)  the familiarity principle doesn't work for their products. 
D)  they have trouble differentiating their product based on convenience. 
A)  they can differentiate their products based on their features. 
B)  the quality of their products is higher than that of others in the market. 
C)  the familiarity principle doesn't work for their products. 
D)  they have trouble differentiating their product based on convenience. D

Question 2

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

Accepted Answer

A)  product depreciation 
B)  mass customization 
C)  product differentiation 
D)  service dissemination 
A)  product depreciation 
B)  mass customization 
C)  product differentiation 
D)  service dissemination C

Question 3

Explain how product features can be used to create differentiation in the market.

Accepted Answer

It is useful to think about offering different product features in three ways:
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.
Does a better job on existing features:Some companies differentiate their products by focusing on one particular feature and doing a better job than other products of providing value on that particular feature.Some companies succeed by doing a better job providing service to customers by figuring out ways to exceed customer expectations.
Does more jobs:In some cases, a product might not do a better job on existing features but simply does more jobs, or meets more needs, for customers than competitor offerings.
Does a unique job:Some products do a completely unique job that other products simply do not do.Rather than simply doing existing jobs better or doing more of jobs than other products, they offer a completely new feature to the market.

Question 4

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 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

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 _____.

Accepted Answer

A)  prestige brands 
B)  convenient brands 
C)  utility brands 
D)  functional brands 
A)  prestige brands 
B)  convenient brands 
C)  utility brands 
D)  functional brands

Question 7

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 8

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

Accepted Answer

The following are the three ways in whic

Question 9

Which of the following is true of product differentiation?

Accepted Answer

A)  It is a matter of customer thought and perception. 
B)  It cannot occur when two companies use similar technologies. 
C)  It does not typically require higher costs. 
D)  It is independent of intangible features such as brand image and value. 
A)  It is a matter of customer thought and perception. 
B)  It cannot occur when two companies use similar technologies. 
C)  It does not typically require higher costs. 
D)  It is independent of intangible features such as brand image and value.

Question 10

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 11

During the process of mapping the consumption chain of a product, Nina looks at the methods followed by companies which send their engineers to check laptops when they detect that a possible bug could be affecting a system.Which of the following questions does this example address?

Accepted Answer

A)  What if customers aren't satisfied and need a return or exchange? 
B)  What help do customers need to become familiar with the product? 
C)  How is your product stored? 
D)  How is your product repaired, serviced, or disposed of? 
A)  What if customers aren't satisfied and need a return or exchange? 
B)  What help do customers need to become familiar with the product? 
C)  How is your product stored? 
D)  How is your product repaired, serviced, or disposed of?

Question 12

Willow Inc., a company that designs and manufactures watches, designs a digital watch allowing users to sync it with their mobile phones.It has a touchscreen, microphone, and Bluetooth device installed in it.The watch is also water-resistant for up to 200 meters.The other general features of the watch remain the same.Which of the following statements is true in this case?

Accepted Answer

A)  The touchscreen feature enables the product to do more jobs on existing functions in terms of product differentiation. 
B)  The Bluetooth device feature enables the product to do a better job of the existing functions in terms of product differentiation. 
C)  The feature of water-proof material enables the product do more jobs in terms of product differentiation. 
D)  The microphone feature enables the product to do a unique job in terms of product differentiation. 
A)  The touchscreen feature enables the product to do more jobs on existing functions in terms of product differentiation. 
B)  The Bluetooth device feature enables the product to do a better job of the existing functions in terms of product differentiation. 
C)  The feature of water-proof material enables the product do more jobs in terms of product differentiation. 
D)  The microphone feature enables the product to do a unique job in terms of product differentiation.

Question 13

Define mass customization and explain what companies must do in order for this method to be successful.

Accepted Answer

Mass customization is when a company mas

Question 14

Which of the following products best exemplifies reliability?

Accepted Answer

A)  A computer that has greater processing speed than others in the market 
B)  A phone that offers the unique function of face recognition 
C)  A washing machine that works optimally for many years 
D)  An air conditioner that detects movement automatically 
A)  A computer that has greater processing speed than others in the market 
B)  A phone that offers the unique function of face recognition 
C)  A washing machine that works optimally for many years 
D)  An air conditioner that detects movement automatically

Question 15

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?

Accepted Answer

A)  Quality 
B)  Reliability 
C)  Convenience 
D)  Prestige 
A)  Quality 
B)  Reliability 
C)  Convenience 
D)  Prestige

Question 16

Leo Foods is an eatery that sells organic food.It opens a number of outlets across the state, creates a website that makes ordering and take-away easy, and also does not charge a delivery fee for its regular customers.Which step of the consumption chain does this scenario depict?

Accepted Answer

A)  The sixth step: how is your product stored/moved around? 
B)  The fourth step: how do consumers become aware of their need? 
C)  The tenth step: how is your product/service paid for? 
D)  The second step: how do consumers find your offering? 
A)  The sixth step: how is your product stored/moved around? 
B)  The fourth step: how do consumers become aware of their need? 
C)  The tenth step: how is your product/service paid for? 
D)  The second step: how do consumers find your offering?

Question 17

_____ is grouping customers based on similar needs.

Accepted Answer

Customer s

Question 18

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 19

The research and development department of Chi Inc.studies the buying patterns of its customers.If it starts with the customers in the first step of the consumption chain, which of the following does it most likely study?

Accepted Answer

A)  How do its customers find its products? 
B)  How do its customers order its products? 
C)  How do its customers become aware of their needs? 
D)  How do its customers pay for the products? 
A)  How do its customers find its products? 
B)  How do its customers order its products? 
C)  How do its customers become aware of their needs? 
D)  How do its customers pay for the products?

Question 20

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

Accepted Answer

A)  How do consumers find your offering? 
B)  How is your product stored/moved around? 
C)  How is your product repaired, serviced, or disposed of? 
D)  How is your product/service delivered? 
A)  How do consumers find your offering? 
B)  How is your product stored/moved around? 
C)  How is your product repaired, serviced, or disposed of? 
D)  How is your product/service delivered?

Companies focus most on establishing brand image when:

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

Explain how product features can be used to create differentiation in the market.

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 _____.

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

Which of the following is true of product differentiation?

During the process of mapping the consumption chain of a product, Nina looks at the methods followed by companies which send their engineers to check laptops when they detect that a possible bug could be affecting a system.Which of the following questions does this example address?

Define mass customization and explain what companies must do in order for this method to be successful.

Which of the following products best exemplifies reliability?

Leo Foods is an eatery that sells organic food.It opens a number of outlets across the state, creates a website that makes ordering and take-away easy, and also does not charge a delivery fee for its regular customers.Which step of the consumption chain does this scenario depict?

_____ is grouping customers based on similar needs.

In terms of product differentiation, convenience refers to:

The research and development department of Chi Inc.studies the buying patterns of its customers.If it starts with the customers in the first step of the consumption chain, which of the following does it most likely study?

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

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

Companies focus most on establishing brand image when:

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

Explain how product features can be used to create differentiation in the market.

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 _____.

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

Which of the following is true of product differentiation?

During the process of mapping the consumption chain of a product, Nina looks at the methods followed by companies which send their engineers to check laptops when they detect that a possible bug could be affecting a system.Which of the following questions does this example address?

Define mass customization and explain what companies must do in order for this method to be successful.

Which of the following products best exemplifies reliability?

Leo Foods is an eatery that sells organic food.It opens a number of outlets across the state, creates a website that makes ordering and take-away easy, and also does not charge a delivery fee for its regular customers.Which step of the consumption chain does this scenario depict?

_____ is grouping customers based on similar needs.

In terms of product differentiation, convenience refers to:

The research and development department of Chi Inc.studies the buying patterns of its customers.If it starts with the customers in the first step of the consumption chain, which of the following does it most likely study?

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

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