Question 1

Which of the following is necessary for a product to be considered reliable?

Accepted Answer

A)  It needs to do a better job as far as performance on existing features is concerned. 
B)  It needs to do more jobs than products offered by other firms in the market. 
C)  It needs to last longer than products offered by other firms in the market. 
D)  It needs to offer unique functions and features that no other firm offers. 
A)  It needs to do a better job as far as performance on existing features is concerned. 
B)  It needs to do more jobs than products offered by other firms in the market. 
C)  It needs to last longer than products offered by other firms in the market. 
D)  It needs to offer unique functions and features that no other firm offers.

Question 2

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 _____.

Accepted Answer

A)  service standardization strategy 
B)  mass customization strategy 
C)  product differentiation strategy 
D)  supply-driven strategy 
A)  service standardization strategy 
B)  mass customization strategy 
C)  product differentiation strategy 
D)  supply-driven strategy

Question 3

Sasha, the marketing head of a firm, believes that customers hire products to do jobs for them and that these jobs should be the basis for market segmentation.In this case, which of the following is Sasha likely to approve?

Accepted Answer

A)  Segmentation based on age and gender of end consumers 
B)  Segmentation based on features such as durability and quality 
C)  Segmentation based on the functions provided by a product 
D)  Segmentation based on socio-economic factors of customers 
A)  Segmentation based on age and gender of end consumers 
B)  Segmentation based on features such as durability and quality 
C)  Segmentation based on the functions provided by a product 
D)  Segmentation based on socio-economic factors of customers

Question 4

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

Accepted Answer

The answer of Network effect occurs when some products or...

Question 5

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?

Accepted Answer

A)  The pen lasted longer than pens by other brands. 
B)  The pen came in different colors and shapes. 
C)  The pen was made with high-quality plastic. 
D)  The pen was easier to purchase than other products. 
A)  The pen lasted longer than pens by other brands. 
B)  The pen came in different colors and shapes. 
C)  The pen was made with high-quality plastic. 
D)  The pen was easier to purchase than other products.

Question 6

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?

Accepted Answer

A)  Designers feel their creative skills will be underutilized in mass production. 
B)  The production costs will reduce to half if products are made in large scale. 
C)  Customers love the idea of designing their own jewelry from scratch. 
D)  Their clientele includes a niche group that prefers highly customized products. 
A)  Designers feel their creative skills will be underutilized in mass production. 
B)  The production costs will reduce to half if products are made in large scale. 
C)  Customers love the idea of designing their own jewelry from scratch. 
D)  Their clientele includes a niche group that prefers highly customized products.

Question 7

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?

Accepted Answer

A)  The sixth step: how do consumers find your offering? 
B)  The seventh step: how is your product stored/moved around? 
C)  The tenth step: what if customers aren't satisfied and need to return or exchange? 
D)  The fifth step: how is your product/service delivered? 
A)  The sixth step: how do consumers find your offering? 
B)  The seventh step: how is your product stored/moved around? 
C)  The tenth step: what if customers aren't satisfied and need to return or exchange? 
D)  The fifth step: how is your product/service delivered?

Question 8

Gear-up Inc., an apparel brand, differentiates its products by manufacturing jeans that last longer than those of other brands.The fabric is durable and does not wear out even after years of regular use.This attracts customers despite Gear-up's high prices.Which of the following elements of product differentiation is Gear-up primarily providing?

Accepted Answer

A)  Aesthetics 
B)  Quality 
C)  Convenience 
D)  Quantity 
A)  Aesthetics 
B)  Quality 
C)  Convenience 
D)  Quantity

Question 9

Explain product differentiation.

Accepted Answer

Product differentiation is a strategy wh

Question 10

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?

Accepted Answer

A)  Zeal's new product is an example of customization. 
B)  The users of the product can contact other users for queries. 
C)  Zeal's new product is likely to be considered reliable although not convenient. 
D)  The customers are likely to purchase it for the unique job the product does. 
A)  Zeal's new product is an example of customization. 
B)  The users of the product can contact other users for queries. 
C)  Zeal's new product is likely to be considered reliable although not convenient. 
D)  The customers are likely to purchase it for the unique job the product does.

Question 11

What is customer segmentation? Mention the three types of customer segmentation.

Accepted Answer

Customer segmentation involves grouping

Question 12

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

Accepted Answer

It is important for a company to figure

Question 13

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

Accepted Answer

Brand image is when products are differe

Question 14

At Red Inc., a retail store, Mark, the manager, maps the consumption chain to understand the buying patterns of the consumers.He has identified how consumers become aware of their needs for products or services.Which of the following is he likely to do next?

Accepted Answer

A)  He identifies how consumers find the store's offerings. 
B)  He identifies why dissatisfied consumers return products. 
C)  He identifies the kind of help that consumers need in order to use their products. 
D)  He identifies the mode used to pay for the products. 
A)  He identifies how consumers find the store's offerings. 
B)  He identifies why dissatisfied consumers return products. 
C)  He identifies the kind of help that consumers need in order to use their products. 
D)  He identifies the mode used to pay for the products.

Question 15

Time-Threads Inc.sells storage devices, such as memory cards, thumb drives, and external hard disks.Which of the following is most likely true if it achieves product differentiation by designing its products to perform more jobs than its competitors?

Accepted Answer

A)  Its thumb drives come with a tracker to help users locate them. 
B)  Its memory cards offer more space than most others in the market. 
C)  Its hard disks are designed for quicker copying of files from various mediums. 
D)  Its instructions manuals are printed in more languages than its competitors. 
A)  Its thumb drives come with a tracker to help users locate them. 
B)  Its memory cards offer more space than most others in the market. 
C)  Its hard disks are designed for quicker copying of files from various mediums. 
D)  Its instructions manuals are printed in more languages than its competitors.

Question 16

Kim, a consumer, is in the final stage of selecting a product.Which of the following is is true if her actions follow the typical consumption chain?

Accepted Answer

A)  Kim is unlikely to have become aware of her need for a product yet. 
B)  Kim is likely to be persuaded by the product attributes at this stage. 
C)  Service providers are likely to assist Kim in helping her use the product. 
D)  Service providers are likely to detect faults with the performance of the product. 
A)  Kim is unlikely to have become aware of her need for a product yet. 
B)  Kim is likely to be persuaded by the product attributes at this stage. 
C)  Service providers are likely to assist Kim in helping her use the product. 
D)  Service providers are likely to detect faults with the performance of the product.

Question 17

The marketing department of a cosmetics brand conducts a research.40% of its customers said that they prefer the brand because they do not need to reapply the product often, while 30% said that they chose the brand because the products are organic.If the brand segments the customers by the features of the cosmetics they prefer, the segmentation is primarily based on _____.

Accepted Answer

A)  brand image 
B)  demographics 
C)  product attributes 
D)  psychographics of wholesalers 
A)  brand image 
B)  demographics 
C)  product attributes 
D)  psychographics of wholesalers

Question 18

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?

Accepted Answer

A)  How to use the product 
B)  How to store the product 
C)  How to assemble the product 
D)  How to locate the product 
A)  How to use the product 
B)  How to store the product 
C)  How to assemble the product 
D)  How to locate the product

Question 19

Crimson Corp., designs its products based on demographics of its customers.Jaded Inc.designs its products based on product attributes.Which of the following is likely to be true in this case?

Accepted Answer

A)  Crimson is likely to consider reliability of products as the primary factor for customer segmentation. 
B)  Crimson is unlikely to consider customizability of products as the primary factor for customer segmentation. 
C)  Jaded is likely to consider income level of customers as the primary factor for customer segmentation. 
D)  Jaded is unlikely to consider quality of products as the primary factor for customer segmentation. 
A)  Crimson is likely to consider reliability of products as the primary factor for customer segmentation. 
B)  Crimson is unlikely to consider customizability of products as the primary factor for customer segmentation. 
C)  Jaded is likely to consider income level of customers as the primary factor for customer segmentation. 
D)  Jaded is unlikely to consider quality of products as the primary factor for customer segmentation.

Question 20

Saturn Inc., a manufacturer of home appliances, familiarizes customers with its products through advertising.Apart from attracting new customers, it offers quick demos in mass media that assist existing customers.Which of the following stages in the consumption chain is depicted in this scenario?

Accepted Answer

A)  The eighth step: what do customers need help with when they use a product? 
B)  The ninth step: what if customers aren't satisfied and need a return or exchange? 
C)  The third step: how do customers make their final selections? 
D)  The fourth step: how do customers order and purchase a product? 
A)  The eighth step: what do customers need help with when they use a product? 
B)  The ninth step: what if customers aren't satisfied and need a return or exchange? 
C)  The third step: how do customers make their final selections? 
D)  The fourth step: how do customers order and purchase a product?

Which of the following is necessary for a product to be considered reliable?

Sasha, the marketing head of a firm, believes that customers hire products to do jobs for them and that these jobs should be the basis for market segmentation.In this case, which of the following is Sasha likely to approve?

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

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?

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?

Explain product differentiation.

What is customer segmentation? Mention the three types of customer segmentation.

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

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

At Red Inc., a retail store, Mark, the manager, maps the consumption chain to understand the buying patterns of the consumers.He has identified how consumers become aware of their needs for products or services.Which of the following is he likely to do next?

Time-Threads Inc.sells storage devices, such as memory cards, thumb drives, and external hard disks.Which of the following is most likely true if it achieves product differentiation by designing its products to perform more jobs than its competitors?

Kim, a consumer, is in the final stage of selecting a product.Which of the following is is true if her actions follow the typical consumption chain?

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?

Crimson Corp., designs its products based on demographics of its customers.Jaded Inc.designs its products based on product attributes.Which of the following is likely to be true in this case?

Saturn Inc., a manufacturer of home appliances, familiarizes customers with its products through advertising.Apart from attracting new customers, it offers quick demos in mass media that assist existing customers.Which of the following stages in the consumption chain is depicted in this scenario?

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

Which of the following is necessary for a product to be considered reliable?

Sasha, the marketing head of a firm, believes that customers hire products to do jobs for them and that these jobs should be the basis for market segmentation.In this case, which of the following is Sasha likely to approve?

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

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?

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?

Explain product differentiation.

What is customer segmentation? Mention the three types of customer segmentation.

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

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

At Red Inc., a retail store, Mark, the manager, maps the consumption chain to understand the buying patterns of the consumers.He has identified how consumers become aware of their needs for products or services.Which of the following is he likely to do next?

Time-Threads Inc.sells storage devices, such as memory cards, thumb drives, and external hard disks.Which of the following is most likely true if it achieves product differentiation by designing its products to perform more jobs than its competitors?

Kim, a consumer, is in the final stage of selecting a product.Which of the following is is true if her actions follow the typical consumption chain?

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?

Crimson Corp., designs its products based on demographics of its customers.Jaded Inc.designs its products based on product attributes.Which of the following is likely to be true in this case?

Saturn Inc., a manufacturer of home appliances, familiarizes customers with its products through advertising.Apart from attracting new customers, it offers quick demos in mass media that assist existing customers.Which of the following stages in the consumption chain is depicted in this scenario?

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