Quiz
Chapter 5 - Product Differentiation
Fragen in diesem Quiz (50)
1________ is a business strategy whereby firms attempt to gain a competitive advantage by increasing the perceived value of their products or services relative to the perceived value of other firms' products or services.
- AProduct differentiation
- BRelated diversification
- CCost leadership
- DBest-cost provider
2By increasing the perceived value of a firm's products or services, a firm will be able to
- Acharge a lower price than it would otherwise be able to do.
- Bcharge a higher price than it would otherwise be able to do.
- Csell its products at lower prices than firms pursuing a cost-leadership strategy.
- Dgain significantly more market share than firms pursuing a cost-leadership strategy.
3While firms often alter the ________ of their products or services in order to implement a product-differentiation strategy, the existence of product differentiation, in the end, is always a matter of ________.
- Acustomer perceptions; objective properties
- Bobjective properties; price
- Ccustomer perceptions; price
- Dobjective properties; customer perception
4If an individual is considering purchasing a Toyota Camry or a Ferrari and decides that it is worth paying the extra money for the prestige that is associated with the Ferrari, the additional money the customer is willing to pay for the prestige is known as a(n)
- Aaltruistic price.
- Bhedonic price.
- Cfair market value.
- Dmargin price.
5The most obvious way that firms can try to differentiate their products is by
- Amaking the product more complex.
- Bintroducing the product at the right time.
- Ccustomizing the product for a particular segment.
- Daltering the features of the products they sell.
6Which of the following bases of product differentiation attempts to create the perception that a firm's products or services are unusually valuable by focusing directly on the attributes of the products or services a firm sells?
- AProduct complexity
- BProduct customization
- CConsumer marketing
- DReputation
7The ability of companies that produce complex software packages to tailor these packages to the specific needs of their customers is an example of product differentiation through
- Acomplexity.
- Bconsumer marketing.
- Cproduct customization.
- Dtiming
8A firm's ________ is really no more than a socially complex relationship between a firm and its customers and can serve as a basis for product differentiation.
- Alocation
- Breputation
- Cconsumer marketing
- Darchitectural competence
9In the bicycle industry, the feel of high-end bicycles when they are ridden is important. As a serious rider becomes accustomed to a particular bicycle, it is very difficult for that rider to switch to an alternative supplier. This is an example of product differentiation through which of the following?
- Alinkages between functions
- Bproduct customization
- Clocation
- Dproduct complexity
10Through which bases of competitive advantage do firms attempt to alter the perceptions of current and potential customers, whether or not specific attributes of a firm's products or services are altered?
- Areputation
- Blocation
- Cproduct customization
- Dconsumer marketing
11________ is the ability to use organizational structure to facilitate coordination among specific disciplines to conduct research.
- AArchitectural competence
- BCross-functional linking
- COrganizational coordination
- DManagerial leverage
12Which of the following bases of product differentiation attempts to create the perception that a firm's products or services are unusually valuable by focusing on links within and between firms?
- Areputation
- Bproduct complexity
- Cconsumer marketing
- Dproduct mix
13________ can be can be a source of product differentiation when a single set of customers purchases several of a firm's products.
- AProduct placements
- BReputation
- CProduct mix
- DArchitectural competence
14Product differentiation is ultimately an expression of the ________ of individuals and groups within firms and is limited only by the ________ that exist, or that can be created, in a particular industry.
- Acreativity; resources
- Bresources; opportunities
- Ccreativity; opportunities
- Dopportunities; resources
15In general, firms selling differentiated products face a demand curve that is
- Aupward sloping.
- Bhorizontal.
- Cvertical.
- Ddownward sloping.
16According to Chamberlin, firms selling differentiated products and facing a downward sloping demand curve are in an industry described as
- Aperfect competition.
- Bmonopolistic competition.
- Coligopolistic competition.
- Dsemi-structured competition.
17Which of the following statements regarding the impact of product differentiation on the threat of new entry is accurate?
- AProduct differentiation helps reduce the threat of new entry by forcing potential new entrants to absorb costs associated with overcoming incumbent firms' product-differentiation advantages.
- BProduct differentiation increases the threat of new entry by allowing potential new entrants to avoid costs associated with overcoming incumbent firms' product-differentiation advantages.
- CProduct differentiation has no impact on the threat of new entry.
- DIt is not possible to determine the impact of product differentiation on the threat of new entry.
18When considering the impact of product differentiation on the threat of rivalry, product differentiation
- Areduces the threat of rivalry to zero.
- Bincreases the threat of rivalry by forcing each firm in an industry to compete directly with one another instead of allowing them to carve out their own unique product niche.
- Chas no impact on the threat of rivalry.
- Dreduces the threat of rivalry because each firm in an industry attempts to carve out its own unique product niche.
19With regard to the threat of suppliers, product differentiation
- Areduces the threat of suppliers because a firm with a highly differentiated product can pass increased costs on to customers.
- Bincreases the threat of suppliers because a firm with a highly differentiated product is unable to pass increased costs on to customers.
- Chas no impact on the threat of suppliers.
- Dcan either increase or reduce the threat of suppliers.
20In emerging industries
- Afirms that are first movers are unlikely to gain product-differentiation advantages based on buyer loyalty and high switching costs.
- Bfirms that are first movers can gain product-differentiation advantages based on perceived technological leadership.
- Cproduct-differentiation efforts are focused on product refinement as a basis of product differentiation.
- Dfirms can sometimes be tempted to exaggerate the extent to which they have refined and improved their products and services.
21In a declining industry
- Aproduct-differentiation efforts are focused on product refinement as a basis of product differentiation.
- Bfirms that are first movers can gain product-differentiation advantages based on perceived technological leadership.
- Chighly differentiated firms may be able to gain product-differentiation advantages by preempting strategically valuable assets.
- Dhighly differentiated firms may be able to discover a viable market niche that will enable them to survive despite the overall decline in the market.
22Which of the following bases of product differentiation is almost always easy to duplicate?
- Aproduct features
- Bproduct mix
- Cproduct customization
- Dconsumer marketing
23Which of the following bases of product differentiation is usually costly to duplicate?
- Aproduct features
- Blinks with other firms
- Creputation
- Dproduct mix
24Which of the following bases of product differentiation is by far the most popular way for firms to try to differentiate their products but is identified as almost always being easy to duplicate?
- Aproduct mix
- Bproduct features
- Ccustomization
- Ddistribution channels
25Product features, by themselves, are
- Ausually not a source of temporary competitive advantage, but they can be a source of a sustainable competitive advantage.
- Busually not a source of either a temporary competitive advantage, or a source of a sustainable competitive advantage.
- Cusually can be a source of both a temporary competitive advantage and a source of a sustainable competitive advantage.
- Dusually not a source of sustained competitive advantage, but they can be a source of a temporary competitive advantage.
26Under which of the following conditions is the product mix advantage as a basis of product differentiation the least difficult to duplicate?
- Awhen the base of a product mix advantage is a common customer
- Bwhen the mix of products is highly integrated with each other
- Cif each of the products in a product mix has unique features
- Dif a firm brings a series of products to market
27Research on architectural competence in pharmaceutical firms suggests that
- Anot only do some firms possess this competence, but that other firms do not; firms without this competence have, on average, been able develop it with minimal investment.
- Bvery few firms possess this competence, but firms without this competence, on average, are able to develop it.
- Cnot only do some firms possess this competence, but also that other firms do not and firms without this competence have, on average, been unable to develop it.
- Dvirtually every firm possesses this competence to some extent.
28Which of the following bases of product differentiation is generally viewed as the most difficult to duplicate?
- Aproduct features
- Breputation
- Clinkages with other firms
- Dlocation
29The U-form structure used to implement a product-differentiation strategy
- Ararely uses temporary cross-divisional and cross-functional teams to manage the development and implementation of new, innovative, and highly differentiated products.
- Bhas simple reporting relationships.
- Coften uses temporary cross-divisional and cross-functional teams to manage the development and implementation of new, innovative, and highly differentiated products.
- Dhas a small corporate staff.
30A ________ structure exists when individuals in a firm have two or more bosses simultaneously.
- AU-form
- Bmultidivisional
- Ccross-divisional
- Dmatrix
31The Lockheed Corporation Skunk Works is an example of a(n)
- Across-divisional or cross-functional team
- BM-form structure
- CU-form structure
- Dmultidivisional structure
32Ultimately the ________ of a product differentiation strategy depends on the ability of individual firms to be creative in finding new ways to differentiate their products.
- Asustained competitive advantage
- Brarity
- Cimitation
- Dinnovation
33A ________ exists when firms are committed to engage in several related product-differentiation strategies simultaneously.
- Apolicy of substitution
- Bpolicy of extrapolation
- Cpolicy of exploration
- Dpolicy of experimentation
34In developing a compensation policy used to implement a product-differentiation strategy, firms will
- Ahold individuals responsible for experiments that fail.
- Bpunish individuals for taking risks when their projects are not successful
- Csimultaneously use multiple dimensions to examine employee performance.
- Dprovide appropriate incentives for managers and employees to reduce costs.
35More recent work in the area of strategic management regarding assertions about being stuck in the middle
- Asupports the argument that firms that attempt to simultaneously pursue cost leadership and product differentiation will find themselves at a competitive disadvantage.
- Bcontradicts the argument and finds that firms that successfully pursue cost leadership and product differentiation simultaneously can often expect to gain a sustained competitive advantage.
- Cpartially contradicts the argument and finds that firms that successfully simultaneously pursue cost leadership and product differentiation can only expect to gain a temporary competitive advantage.
- Dpartially contradicts the argument and finds that only firms in certain select industries can successfully simultaneously pursue cost leadership and product differentiation and gain a temporary competitive advantage.
36Firms that are stuck in the middle attempt to sell
- Ahigh-priced products and gain small market share.
- Blow-priced products and gain large market share.
- Chigh-priced products and gain a large market share.
- Dmedium-priced products and gain medium market share.
37While cost leadership requires rewards for cost reduction, product differentiation requires rewards for ________.
- Acreative flair
- Befficiency
- Cquantitative goals
- Dproduction goals
38Recent research suggests that ________ firms must have competitive levels of cost to survive.
- Alow-cost
- Ball
- Cdomestic
- Dproduct-differentiation
39Recent research shows that firms can simultaneously implement cost-leadership and product-differentiation strategies if they learn how to manage the ________ inherent in these two strategies.
- Aconsistencies
- Bsimilarities
- Ccontradictions
- Dsuperfluousness
40Cross-functional product development teams are suitable for a firm pursuing a ________ strategy.
- Acost-leadership
- Bconfrontation
- Cproduct-differentiation
- Dstuck-in-the-middle
41Which generic business level strategy is Coach pursuing?
- Acost leadership
- Brelated diversification
- Cproduct differentiation
- Dunrelated diversification
42The price premium that customers are willing to pay for the superior quality and perceived prestige of Coach's products over the prices of similar products are known as
- Amarginal prices.
- Bhedonic prices.
- Cheroic prices.
- Delastic prices.
43Which of the following bases of product differentiation does Coach appear to be employing?
- Aproduct features, product complexity, and consumer marketing
- Blocation, linkages between functions, and reputation
- Creputation, consumer marketing, and product features
- Ddistribution channels, service and support, and links with other firms
44Which of the following bases of Coach's competitive advantage is likely to be the most difficult to duplicate?
- Aproduct features
- Bconsumer marketing
- Clocation
- Dreputation
45Which of the following bases of Coach's competitive advantage is likely to be the easiest to duplicate?
- Aproduct features
- Bconsumer marketing
- Clocation
- Dreputation
46The business level strategy Coach is pursuing is likely to
- Areduce the threat of rivalry to virtually zero.
- Bincrease the threat of substitutes due to premium pricing.
- Cdecrease the threat of new entrants due to the additional cost they would face to overcome Coach's reputation advantages.
- Ddecrease the threat of buyers since Coach can lower its prices due to its efficient manufacturing operations.
47Given that the leather handbag market that Coach largely competes in can be considered a mature market, Coach should focus its product-differentiation efforts on
- Aexploiting a first-mover advantage as a basis of product differentiation.
- Bintroducing radically new technologies as a basis of product differentiation.
- Cseeking a viable market niche that will enable it to survive.
- Drefining products as a basis of product differentiation.
48Coach's agreement with Lexus to produce automobiles with Coach leather interior is an example of
- Acooperative strategic alliance.
- Barchitectural competence.
- Cskunk works.
- Dproduct placement.
49If Coach had an organizational structure that used cross-functional teams, the members of which reported not only to their functional boss (i.e. the head of production) but also to the head of the team, Coach could be said to be using which organizational structure?
- Aproduct divisional
- Bmatrix
- CU-form
- Dmulti-domestic
50One feature of Coach's compensation policies is likely to be
- Arewards for cost reduction.
- Brewards for efficiency.
- Crewards for creative flair.
- Drewards for manufacturing efficiency.
Informationen
- Beschreibung
- Quiz am Chapter 5 - Product Differentiation, erstellt von Strategy IO am 29/12/2016.
- Autor
- Strategy IO
- Sprache
- English
- Aufrufe
- 577
- Verlauf
- Erstellt am 29 Dez 2016 · aktualisiert am 1 Jan 2017
- Bewertung
- Noch keine Bewertungen Bewerte dieses Quiz