Question 1

Hybrid strategies that combine differentiation and cost leadership are increasingly popular because they are easily implemented.

Accepted Answer

A) True 
 B)False  False

Question 2

A firm can gain competitive advantage through a marketing strategy of either ________ or ________.

Accepted Answer

A)  product differentiation; globalization 
B)  curve effects; process innovation 
C)  cost leadership; differentiation 
D)  integration; standardization C

Question 3

Cost leaders typically implement a top-down approach,produce goods for mass markets,and operate efficiently.

Accepted Answer

A) True 
 B)False  True

Question 4

A firm that follows a differentiation strategy would most likely have an organizational structure that is ________.

Accepted Answer

A)  organic 
B)  centralized 
C)  hierarchical 
D)  mechanistic

Question 5

Generic marketing strategies are typically categorized along any of the following dimensions EXCEPT ________.

Accepted Answer

A)  brand loyalty 
B)  cost leadership 
C)  competitive scope 
D)  product differentiation

Question 6

An employee of a firm that follows a differentiation strategy would most likely be encouraged to share creative ideas and experiment with innovative concepts.

Accepted Answer

A) True 
 B)False

Question 7

What characteristics are associated with firms that follow a cost leadership strategy and a differentiation strategy? Illustrate your answer with examples of firms that follow these two different strategies.

Accepted Answer

The answer of What characteristics are associated with firms that...

Question 8

Walmart is an example of a firm that follows a strategy of ________.

Accepted Answer

A)  product differentiation 
B)  flexible automation 
C)  brand personality 
D)  cost leadership

Question 9

For a firm to maintain a position of cost leadership,________ is critical.

Accepted Answer

A)  market share 
B)  product innovation 
C)  brand personality 
D)  labor specialization

Question 10

Which of the following is a source of differentiation?

Accepted Answer

A)  economies of scale 
B)  standard design 
C)  low-cost inputs 
D)  aesthetics

Question 11

The size and breadth of the market that a strategy intends to serve is known as the ________.

Accepted Answer

A)  product leadership scale 
B)  competitive scope 
C)  niche category 
D)  cost focus

Question 12

Which of the following is a characteristic associated with a cost leadership strategy?

Accepted Answer

A)  flexible automation 
B)  stable financial structure 
C)  unique product qualities 
D)  new product development

Question 13

Which type of strategy is used by IKEA?

Accepted Answer

A)  cost leadership 
B)  differentiation 
C)  customer focus 
D)  hybrid

Question 14

In which of the following situations is a niche strategy most common and successful?

Accepted Answer

A)  product differentiation and mass market 
B)  cost leadership and mass market 
C)  product differentiation and narrow market 
D)  cost leadership and narrow market

Exam 17: Note : Generic Strategies - Advantage and Scope