Ch.9 MKT772

Which of the following is not one of the four strategic options viable for a leader in the early growth stage of the product life cycle?

All are viable strategic options. (moderate)

Which of the following is NOT mentioned in the text as a characteristic of a firm with good business strengths?

All selections represent good business strengths (moderate)

Which of the following is NOT mentioned in the text as a basic option for follower firms in the early growth stage?

Change the market culture. (difficult)

Markets in the decline stage of the product life cycle are particularly inhospitable if any of the following exist EXCEPT:

Competitor exit barriers are low. (difficult)

Which of the following is NOT mentioned in the text as a type of barrier to growth that must be analyzed to determine if the life cycle is in maturity?

Cultural (moderate)

Which of the following is NOT one of the three types of barriers considered critical in forestalling competition from entering a newly developing market?

Culture-specific (moderate)

According to the text, a market may be viewed as inhospitable to decline if any of the following exists EXCEPT:

Customer switching costs are high. (difficult)

According to the text, all of the following are alternative approaches to increasing product use EXCEPT:

Design the product for infinite life span (moderate)

Which of the following strategies is especially viable if the leader has been lazy, over-milking the product via underinvestment, or arrogant in serving customers inadequately?

Direct attack (moderate)

Which of the following describes the two broad options for a follower firm that chooses to exit an industry?

Divest or liquidate (moderate)

Which of the following describes the theory where as accumulated volume in making, promoting, and distributing a product increases, cost can be made to decline in a predictable manner ?

Experience curve (moderate)

According to the text, harvesting is an especially favored strategy when the basis of fragmentation is geographic.

False (difficult)

In the maturity stage of the product life cycle, advertising emphasis shifts to brand differentiation and selective demand creation.

False (difficult)

Low prices during introduction are typically termed skimming strategies. The strategies require significant effort to reduce costs continually, and management must resolve to accept low margins for an extended period despite large R&D expenditures.

False (moderate)

Poor business strengths, even in hospitable markets, suggest that the firm implement a maintain strategy.

False (moderate)

The dominant option for a follower firm in the early-growth stage of the product life cycle seeking growth is segmentation and differentiation through imitation.

False (moderate)

The net financial position of the majority of products at the introduction stage of the product life cycle is positive.

False (moderate)

To harvest or maintain are the two broad options of a follower firm that chooses to exit an industry.

False (moderate)

Which of the following barriers consists of a drive for low costs that allows low prices and may deter competitor entry, as well as the development and exploitation of first-mover advantage?

Firm-driven (moderate)

Inhospitable markets imply that which of the following strategies should be implemented?

Harvest (moderate)

According to the text, the three primary ways a follower firm can pursue growth with the possible objective of ultimately dethroning the leader include all of the following EXCEPT:

Harvesting (moderate)

_______________ means emphasizing increases in short-term cash flow at the expense of maintaining market share or sales volume.

Harvesting (moderate)

Which of the following stages of the product life cycle often follows many years of research and development by one or more firms?

Introduction (easy)

Which of the following means closing down and selling the assets of a business?

Liquidate (easy)

Which of the following is NOT mentioned in the text as an area that requires attention when a firm is implementing a slow harvest strategy?

Modify culture (moderate)

Product-specific barriers are related to the product form and include all of the following EXCEPT:

Patents (moderate)

If government and/or product-specific barriers are low and the market is price sensitive, which of the following pricing strategies would be most appropriate?

Penetration pricing (easy)

Which of the following is NOT a reason that firms underinvest in mature products?

Political power of mature-product champions (difficult)

_______________ requires a careful examination of all aspects of the business as well as tough decision-making to cut costs wherever possible to turn a loss into at least a marginal profit.

Rationalizing (moderate)

Which of the following strategies for firms competing in fragmented markets is described as a way to reduce variation and improve consistency across various suppliers?

Standardization (difficult)

According to the text, the most common government-imposed barrier is a patent.

True (easy)

If entry barriers are low and the market is price sensitive, penetration pricing would be most appropriate.

True (easy)

According to the text, the two broad options that are available to follower firms pursuing a leadership objective in the early-growth stage of the product life cycle are imitation and innovation.

True (moderate)

For follower firms in mature markets, the two status quo options are maintain position or rationalize.

True (moderate)

Harvesting means emphasizing increases in short-term cash flow at the expense of maintaining market share or sales volume.

True (moderate)

The concept that a follower firm may acquire several unprofitable or marginally profitable low market share products from other firms and develop a strong competitor is called kenneling.

True (moderate)

The experience curve describes the theory in which unit costs are reduced in a predictable manner as accumulated volume increases.

True (moderate)

The two major options for firms competing in mature fragmented markets are acquisition and standardization and branding.

True (moderate)

According to the text, the most common government-imposed barrier is _______________.

a patent (moderate)

According to the text, _______________ is an especially favored strategy when the basis of fragmentation is geographic.

acquisition (moderate)

The two strategic options of firms restructuring offers in fragmented mature markets are _______________ and _______________.

acquisition and standardization (moderate)

According to the text, to _______________ means selling the business to another organization.

divest (easy)

The _______________ choice to exiting an industry requires that the firm solve a marketing problem by identifying the right customer for the business.

divest (moderate)

Which of the following is NOT a pressure for over investment in mature products to gain market share from entrenched competitors?

fear of cannibalization (moderate)

A(n) _______________ strategy means that the firm copies the leader, but is more effective in execution.

imitation (moderate)

According to the text, the two broad options that are available to firms pursuing the leadership objective are _______________ and _______________.

imitation and leapfrog (difficult)

The concept that a follower firm may acquire several unprofitable or marginally profitable low market share products from other firms and develop a strong competitor is called _______________.

kenneling (easy)

The key feature of the _______________ stage of the product life cycle is the potential for market segmentation that makes market research skills critical.

late growth (moderate)

According to the text, the two "continue" options for competing firms in the mature stage of the product life cycle are _______________ or _______________.

maintain position or rationalize (moderate)

A useful way to conceptualize decline businesses is with the twin concepts of _______________ and _______________.

market hospitality and business strengths (difficult)

The net financial position of the majority of products at the introduction stage of the product life cycle is _______________.

negative (easy)

Low prices during introduction are typically termed _______________ and the firm must accept low profit margins for a substantial time period.

penetration pricing (easy)

According to the text, presence of the experience curve leads to two broad pricing options that include ______________ and _______________.

penetration pricing and skim pricing (difficult)

In _______________, prices stay high as costs are reduced, and the firm earns high margins for limited fixed investment.

price skimming (moderate)

Which of the following pricing strategies is viable if government and/or product-specific entry barriers are high, customer willingness to try is strong, and customers are relatively price insensitive?

price skimming (moderate)