Chapter 16 Quiz

In the context of the BCG matrix, a _____ describes brands doing well in a non-growth industry. a. cash cow b. question mark c. star d. dog

a

In the context of the General Electric model, which of the following statements explains the difference between market attractiveness and business strengths? a. Market attractiveness is related to the external factors of a SWOT, while business strengths are related to the internal factors of a SWOT. b. Market attractiveness is analogous to cash cows, while business strengths are analogous to dogs. c. Market attractiveness is analogous to stars, while business strengths are analogous to question marks. d. Market attractiveness is related to tangible products, while business strengths are related to intangible services.

a

In the context of the Porter strategies, which of the following statements explains the difference between focused and differentiation strategies? a. The scope of focused strategies is narrow, while the scope of differentiation strategies is broad in nature. b. Focused strategies relate to a firm's internal strengths, while differentiation strategies relate to a firm's opportunities. c. Focused strategies relate to question marks in a BCG matrix, while differentiation strategies relate to cash dogs. d. Differentiation strategies have a definite relationship to the stars of a firm, while focused strategies have a definite relationship to the cows of a firm.

a

In the context of the Treacy and Wiersema strategies, customer intimacy involves offering highly tailored products and services to meet a customer's unique desires. a. True b. False

a

Variable costs = ? a. Variable unit costs × Sales volume (in units) b. Variable unit costs / Sales volume (in units) c. Sales volume (in units) / Variable unit costs d. Variable unit costs + Sales volume (in units)

a

When considering any variation of goals, the first strategy is to do nothing. a. True b. False

a

Before knowing its 5Cs, a firm should decide on the problem to solve or the opportunity to exploit. a. True b. False

b

In the context of the Ansoff's product-market growth matrix, a firm pursuing a diversification strategy plans to expand product lines but does not seek out new customers. a. True b. False

b

In the context of the BCG matrix, which of the following statements explains the difference between a question mark and a dog? a. A question mark receives less marketing attention than a dog. b. A question mark's market potential is unknown, while a dog's market potential is pretty low. c. A question mark deals with cash cows, while a dog deals with stars. d. A question mark's product tangibility is greater than that of a dog's product tangibility.

b

In the context of the General Electric model, market attractiveness is analogous to the "internal" pieces of SWOT analyses. a. True b. False

b

Typically a marketer does not have a control over the STP and 4Ps, but the 5Cs have some malleability. a. True b. False

b

In the context of price changes, operationally low prices and _____ necessitate the hassle of having to deal in large volume. a. low revenue b. high net income c. low margins d. high perishability

c

What does the term "milk the brand" mean? a. Spending more on a company's fixed brand costs and variable brand costs. b. Allowing a supplier and distributor to incur a loss on their brand equities. c. Letting a strong brand speak for itself and not spending much on its continued development or maintenance. d. Spending more on a company's brand extension rather than on a product line extension.

c

A company reduces its fixed costs by: a. reducing the number of units and becoming a niche provider. b. outsourcing part of its business operations that appear expensive. c. finding a less expensive but requisite quality supplier. d. spending less on R&D, unless the company prides itself on being innovative.

d

In the context of the Ansoff's product-market growth matrix, a firm pursuing a market penetration strategy: a. seeks out new customers but has no plans to expand its product lines. b. plans to expand its product lines but does not seek out new customers. c. plans to expand product lines and seek out new customers. d. has no plans to expand product lines or seek out new customers.

d