Deck 6: Market Structure and Competitor Analysis

Question 1

Which of the following best describes different specific combinations of features within each product type?

A)product types
B)product variants and brands
C)industry
D)product categories

Answer 1

B

Question 2

With reference to a product-industry hierarchy,a product type encompasses:

A)a product class.
B)an industry.
C)product variants.
D)a product category.

Answer 2

C

Question 3

Which of the following is the best example of generic competition in the coffee drip machine category?

A)other brands of coffee drip machines
B)percolators and espresso machines
C)juicers and water purifiers
D)pots and pans

Answer 3

C

Question 4

Which of he following refers to one particular product segment of a particular industry?

A)a product brand.
B)a product variant.
C)a product type.
D)a product class.

Question 5

Which of the following examples best represents product class competition in drip coffee machine category?

A)other brands of coffee drip machines
B)percolators and espresso machines
C)juicers and water purifiers
D)pots and pans

Question 6

A ________ approach classifies competitors based on customer attitudes and behaviors.

A)customer-based
B)supply-based
C)market-based
D)demand-based

Question 7

A competition is inward oriented in which of the following types of competition?

A)product form competition and product category competition
B)product form competition and generic competition
C)product category competition and generic competition
D)product category competition and budget competition

Question 8

Which of the following refers to a group of products that are functional substitutes of each other?

A)an industry
B)a product variant
C)a product type
D)a product class

Question 9

Which of the following is a good example of an industry?

A)housewares
B)water purifiers
C)percolators
D)drip coffee makers

Question 10

Analyzing the strengths and weaknesses of the competitors and their current and likely future strategies is called:

A)competitor analysis.
B)market structure analysis.
C)demographic analysis.
D)regression analysis.

Question 11

Which of the following types of competition is based on products that have similar features and provide the same basic function?

A)product class or product category
B)product form
C)generic
D)budget

Question 12

A ________ approach classifies competitors based on objective attributes of the firms.

A)customer-based
B)supply-based
C)market-based
D)demand-based

Question 13

Which of the following statements is true regarding a product form competition?

A)It is a wide definition of competition.
B)It is useful in the long run.
C)It represents the true underlying competitive dynamics.
D)It provides the closest set of competitors.

Question 14

An example of a customer-based assessment of competition is:

A)naive extrapolation.
B)market segmentation.
C)substitution in use.
D)perceptual mapping.

Question 15

Which of the following represents a group of products that are close substitutes,are available to a common group of buyers,and are distant substitutes for all products not included in the industry?

A)An industry
B)A product class
C)Product types
D)Product variants

Question 16

Which of the following examples best represents product form competition in drip coffee machine category?

A)other brands of coffee drip machines
B)percolators and espresso machines
C)juicers and water purifiers
D)pots and pans

Question 17

The narrowest definition of competition that results in the fewest competitors that includes only products or services of the same product types is called:

A)product form competition.
B)product category competition.
C)generic competition.
D)budget competition.

Question 18

Which of the following types of competition can be defined as products or services that the customer views as fulfilling the same need?

A)product form competition
B)product category competition
C)generic competition
D)budget competition

Question 19

A product category is also known as a:

A)product brand.
B)product variant.
C)product type.
D)product class.

Question 20

A market structure analysis is used to better understand the:

A)competition.
B)customers.
C)employees.
D)social environment.

Question 21

Which of the following refers to a level of competition that includes any product,related or unrelated,that could be viewed as substitutable in a budget?

A)product class competition
B)product form competition
C)budget competition
D)generic competition

Question 22

A company where privatization resulted from a leveraged buyout is more interested in which of the following situations?

A)creating more jobs for the community
B)generating profits and cash flow to pay down debt
C)plowing money into activities that will help gain market share
D)developing new products

Question 23

In the case of NAIC codes,three digit codes define:

A)a product class.
B)an industry.
C)a product type.
D)product variants.

Question 24

If a brand pursues a profit objective at the expense of share loss,the objective is usually called a ________ if the ultimate intention is to drop the product.

A)growth objective
B)investment objective
C)market share objective
D)harvest objective

Question 25

If a cross-elasticity with respect to price is positive then:

A)a product's sales increase when another product's price drops.
B)a product's sales decline when another product's price drops.
C)a product's sales decline when another product's price increases.
D)a product's sales are independent of another product's price.

Question 26

If a marketing manager observes that a competitor has increased his price and decreased his marketing budget,it would be an example of which of the following?

A)price differentiation
B)a retreat,although only temporary
C)aggressive competition for market share
D)quality differentiation

Question 27

At which of the following levels of competition must the marketer convince customers that the product form is the best in the product category?

A)product form competition
B)product category competition
C)generic competition
D)budget competition

Question 28

Which of the following levels of competition can be determined from observation and external data sources?

A)product form and product category
B)product form and generic
C)product category and generic
D)product form and budget

Question 29

Which of the following best describes the type of information a marketing manager would need to know when determining the competitor's major objectives?

A)whether they are pursuing growth or profit-related objectives
B)the demographics of the competitors' employees
C)the demographics of the competitor's CEO
D)the contributions to nonprofit organizations in the previous year

Question 30

________ competition can destroy entire product categories when a major innovation occurs,so it requires attention,especially for long-run planning.

A)Product form
B)Product category
C)Generic
D)Budget

Question 31

Companies such as Kellogg,IBM,Microsoft,and Intel hire individuals from which one of the backgrounds below to help them better understand their competitors and predict their likely future strategies?

A)DEA
B)FDA
C)CIA
D)FBI

Question 32

At the ________ level,marketers must convince customers that their product category solution to the customer's problem is superior to the solution provided by other product categories.

A)product form competition
B)product category competition
C)generic competition
D)budget competition

Question 33

________ is the percentage change in one product's sales due to a percentage change in a marketing variable (such as price)for another product.

A)Reverse-elasticity
B)Demand-elasticity
C)Cross-elasticity
D)Supply-elasticity

Question 34

The bottom line of a competitor analysis is:

A)assessing current marketing strategies of the competitors.
B)identifying strengths and weaknesses of your own organization.
C)assessing strengths and weaknesses of the competitors.
D)forecasting likely future strategies of the competitors.

Question 35

Because privately-owned firms do not have to account to stock analysts:

A)short-term profits may be more important than long-term growth.
B)long-term profits may be more important than showing consistent positive quarterly returns.
C)short-term sales growth may be more important.
D)it is important to show consistent quarterly profit returns.

Question 36

The value proposition offered by the competitors and the marketing mix used by them will most likely fall under which of the following parts of the competitor analysis?

A)determination of the competitors' major objectives
B)assessment of the competitors' current marketing strategies
C)assessment of the competitors' strengths and weaknesses
D)internal analysis of your firm's strengths and weaknesses relative to the competitors

Question 37

Which of the following examples best represents product class competition in drip coffee machine category?

A)other brands of coffee drip machines
B)percolators and espresso machines
C)juicers and water purifiers
D)products such as pots and pans

Question 38

Because the key to success in business is obtaining and keeping customers,the most crucial form of competition is generally ________ competition,in which competition occurs for the same customers.

A)product form
B)product category
C)generic
D)budget

Question 39

Economists often use ________ as an indicator of substitutability.

A)cross-elasticity of demand
B)conjoint analysis
C)perceptual mapping
D)demand forecasting

Question 40

Which of the following is the most difficult kind of competition to assess because it cannot be observed readily and competitors may be numerous?

A)product form and product category
B)product form and generic
C)budget and generic
D)product category and budget

Question 41

Which of the following best describes a competitor with an ability to develop new products?

A)a serious long-term threat in a market
B)an aggressive competitor
C)a cooperative competitor
D)a possible short-term threat in a market

Question 42

With reference to a SWOT analysis,the letter 'T' in the word SWOT stands for:

A)time.
B)threats.
C)trends.
D)tactics.

Question 43

A typical marketing planning horizon is:

A)one month.
B)six months.
C)one year.
D)five years.

Question 44

Which of the following primary sources is excellent in determining competitor sales pitches,pricing,and other aspects of their activity?

A)employees
B)sales force and customers
C)suppliers
D)Internet newsgroup

Question 45

While searching information about the market,it is convenient to begin the search with this source of information.Identify it.

A)internal sources
B)annual report
C)patent and trademark filings
D)government sources

Question 46

Which of the following companies is most likely to be a threat to increasing sales or share in the short term?

A)a firm with a high ability to develop new products
B)a firm with limited financial resources
C)a firm with slack capacity
D)a firm with broad product line

Question 47

A casual examination of which of the following secondary sources of information shows that companies disclose a good deal of information about their new products,areas of emphasis,job qualifications and standards,new plant or facility locations,and other information?

A)annual reports
B)patent and trademark filings
C)general business and trade publications
D)help-wanted ads

Question 48

Which of the following statements is true regarding scenario planning?

A)This method involves extrapolating historical sales data into the future.
B)It can be used only when a lot of data is available for analysis.
C)This method involves creating alternative scenarios of the future.
D)It is useful when many nonquantifiable factors affect outcomes in the market.

Question 49

Sales promotion activities will be tracked by which area of an organizations marketing mix?

A)communications
B)distribution
C)price
D)product or service capabilities

Question 50

With the help of which of the following,a marketing manager can assess competitors' core strategies ?

A)talking to the competitors' employees
B)studying the competitors' marketing communications
C)talking to the customers
D)studying the government data sources

Question 51

Which of the following is a good example of primary source of information?

A)sales force and customers
B)help-wanted ads
C)trade associations
D)patent and trademark filings

Question 52

For industrial products and services,which of the following sources of information is considered to be useful?

A)information related to coupon usage
B)your own sales force
C)media advertising
D)an advertising agency

Question 53

Which of the following is the biggest of all subscription-based information services?

A)DIALOG
B)Yahoo
C)America Online
D)Microsoft

Question 54

________ was invented by John von Neumann and Oskar Morgenstern to account for the interdependence of economic factors and it is a mathematical approach that is used to anticipate a competitor's likely future strategies.

A)Regression analysis
B)Game theory
C)Conjoint analysis
D)Linear regression

Question 55

Which of the following best describes a sophisticated,long-term version of the simulation process?

A)conjoint analysis
B)scenario planning
C)multidimensional scaling
D)regression analysis

Question 56

Which of the following is a good source of secondary information?

A)annual reports
B)customers
C)the company sales force
D)employees

Question 57

When a marketing manager conducts a competitive assessment of his own business,which of the following contains a summary of the different components of this analysis?

A)a SWOT analysis
B)the BCG matrix
C)perceptual mapping
D)conjoint analysis

Question 58

For consumer products,which of the following is best in tracking a competitor's segmentation and target market strategy.?

A)media advertising
B)coupon usage
C)trade promotion
D)your own sales force

Question 59

A SWOT analysis focuses on which of the following?

A)on your business only
B)on both your business and your competitors
C)on your competitors' businesses only
D)on the customers only

Question 60

Which of the following is most likely to be an objective of only a government-controlled firm?

A)maintaining employment
B)increasing profit in the long run
C)increasing market share
D)short-term profit

Question 61

The central importance of game theory is best described by which of the following?

A)Game theory imposes disciplined thinking on managers.
B)Game theory is the best way of analyzing historical sales data.
C)Game theory is an inexpensive way of anticipating a competitor's future strategies.
D)Game theory is easy to learn.

Question 62

Product form competition is the widest definition of competition.

Question 63

________ game theory seeks to predict the behavior of rational,intelligent firms competing independently.

A)Noncooperative
B)Cooperative
C)Dynamic
D)Static

Question 64

A product form competition may set an industry standard for looking at competition and market shares in a way that does not represent the true underlying competitive dynamics.

Question 65

The industries in which one company has historically chosen to be the first in changing price or making some other marketing-mix or strategic decision,________ concept of game theory is used.

A)prisoner's dilemma
B)Nash equilibrium
C)best strategy
D)leader-follower

Question 66

Generic competition is inward orientated.

Question 67

A supply-based approach classifies competitors based on customer attitudes and behaviors.

Question 68

A level of competition that includes all products or services that the customer views as fulfilling the need requiring satisfaction on a particular purchase or use occasion is known as budget competition.

Question 69

A product class is also called a product type.

Question 70

Product form or product category competition is inward oriented.

Question 71

Industries with ________ significant competitors offer the best potential for using game theory.

A)ten or more
B)two or fewer
C)five or more
D)four or fewer

Question 72

________ is a list of strategies,one for each player,with the property that no manager wants to unilaterally change his or her strategy.

A)Nash equilibrium
B)Budget equilibrium
C)Generic equilibrium
D)Cooperative equilibrium

Question 73

An analysis in which the marketing manager seeks to better understand strengths and weaknesses of his own organization is known as market structure analysis..

Question 74

Which of the following types of industries tend to be good application areas for game theory and strategic thinking?

A)industries subject to strong competition
B)monopolies
C)industries whose costs are largely variable
D)industries which are highly regulated by the government

Question 75

A kind of game in which competition leads to a less-than-optimum outcome for both managers,is called:

A)budget outcome dilemma game.
B)prisoner's dilemma game.
C)leader-follower dilemma game.
D)best strategy dilemma game.

Question 76

In game theory,________ is a graphic depiction of the rewards or costs to each player for each possible combination of strategies.

A)communication matrix
B)responsibility matrix
C)payoff matrix
D)perceptual matrix

Question 77

The most common form of equilibrium used for solutions to game theory models is called:

A)budget equilibrium.
B)nash equilibrium.
C)generic equilibrium.
D)cooperative equilibrium.

Question 78

A product form competition,is more inclusive than a product category competition.

Question 79

An analysis in which the strengths and weaknesses of competitors and their current and likely future strategies are examined is known as competitor analysis.

Question 80

Coke and bottled water brands continue to run sales promotions and compete strongly on price.Clearly,the best solution would be for neither to promote which would jointly maximize their profits.However,both are worried that if they stop promoting while the other does not,they will suffer.As a result,the equilibrium is heavy promotion by both and lower total profits.With reference to the game theory,this is an example of:

A)generic equilibrium.
B)prisoner's dilemma game.
C)leader-follower game.
D)best strategy game.