Deck 13: Note : Market-Share Effects

Question 1

According to PIMS data,a strong correlation exists between ________ and ________.

A) productivity; marketing mix
B) profitability; market share
C) productivity; market share
D) profitability; marketing strategies

Answer 1

B

Question 2

Studies show that firms with externally focused strategies outperform firms with internally focused strategies.

Answer 2

False

Question 3

According to research,which of the following is LEAST likely to lead to both higher margins and higher market share for a firm?

A) human resource orientation
B) effective management
C) quality products
D) resource access

Answer 3

A

Question 4

Research indicates that an increase of ________ percentage point(s)in market share correlates to an increase of ________ percentage point(s)in profitability.

A) 1; 3
B) 2; 4
C) 3; 1
D) 4; 2

Question 5

In most cases,market share correlates with a firm's ________.

A) culture
B) profitability
C) ancillary sales
D) marketing mix

Question 6

What are the positive and negative effects of a strategy based on gaining market share?

Question 7

Including market share as an objective in a business strategy is appropriate in all of the following cases EXCEPT when ________.

A) customer loyalty is hard to measure
B) industries plan to set standards
C) new entrants need to be barred
D) ancillary sales are anticipated

Question 8

Which of the following is LEAST likely to be associated with the firm that has the higher market share?

A) learning curve effects
B) economies of scale
C) economies of scope
D) higher profitability

Question 9

Research indicates that although market share is desirable,it does not necessarily correlate to higher profitability for a firm.

Question 10

Based on market share research,which of the following is a true statement?

A) Skillfully managed firms tend to have higher market shares.
B) Better product quality increases customer loyalty but not profitability.
C) Market share has been shown to be the primary cause of a firm's profitability.
D) Internal-based strategies lower performance compared to external-based strategies.

Question 11

Market share is best described as a(n)________.

A) value-adding activity
B) internal-oriented objective
C) customer-oriented activity
D) competitor-oriented objective

Question 12

Which of the following would most likely provide information about the relationships between a firm's activities,strategies,and results?

A) PIMS data
B) MEP chart
C) BCG matrix
D) SWOT analysis

Question 13

A firm with a higher market share than a competitor will have lower per-unit costs.

Question 14

Which of the following indicates how well a firm is succeeding in comparison to a competitor?

A) value map
B) fixed costs
C) market share
D) experience curve