BAD ch. 5
________ is the ability to use organizational structure to facilitate coordination among specific disciplines to conduct research.
Architectural competence
Which of the following statements regarding the impact of product differentiation on the threat of new entry is accurate?
Product differentiation helps reduce the threat of new entry by forcing potential new entrants to absorb costs associated with overcoming incumbent firms' product-differentiation advantages.
The most obvious way that firms can try to differentiate their products is by
altering the features of the products they sell
By increasing the perceived value of a firm's products or services, a firm will be able to
charge a higher price than it would otherwise be able to do
Through 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?
consumer marketing
While cost leadership requires rewards for cost reduction, product differentiation requires rewards for ________.
creative flair
Product 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.
creativity; opportunities
The Lockheed Corporation Skunk Works is an example of a(n)
cross divisional or cross function team
In general, firms selling differentiated products face a demand curve that is
downward sloping
In emerging industries
firms that are first movers can gain product-differentiation advantages based on perceived technological leadership.
If 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)
hedonic price
In a declining industry
highly differentiated firms may be able to discover a viable market niche that will enable them to survive despite the overall decline in the market
A ________ structure exists when individuals in a firm have two or more bosses simultaneously.
matrix
Firms that are stuck in the middle attempt to sell
medium-priced products and gain medium market share.
Research on architectural competence in pharmaceutical firms suggests that
not 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.
While 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 ________.
objective properties; customer perception
The U-form structure used to implement a product-differentiation strategy
often uses temporary cross-divisional and cross-functional teams to manage the development and implementation of new, innovative, and highly differentiated products.
A ________ exists when firms are committed to engage in several related product-differentiation strategies simultaneously
policy of experimentation
Which 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?
product complexity
In 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?
product customization
The 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
product customization
Cross-functional product development teams are suitable for a firm pursuing a ________ strategy
product differentiation
Recent research suggests that ________ firms must have competitive levels of cost to survive.
product differentiation
________ 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.
product differentiation
Which of the following bases of product differentiation is almost always easy to duplicate?
product features
Which 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?
product features
Which 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?
product mix
________ can be can be a source of product differentiation when a single set of customers purchases several of a firm's products.
product mix
Ultimately the ________ of a product differentiation strategy depends on the ability of individual firms to be creative in finding new ways to differentiate their products.
rarity
When considering the impact of product differentiation on the threat of rivalry, product differentiation
reduces the threat of rivalry because each firm in an industry attempts to carve out its own unique product niche.
With regard to the threat of suppliers, product differentiation
reduces the threat of suppliers because a firm with a highly differentiated product can pass increased costs on to customers.
A 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.
reputation
Which of the following bases of product differentiation is generally viewed as the most difficult to duplicate?
reputation
Which of the following bases of product differentiation is usually costly to duplicate?
reputation
In developing a compensation policy used to implement a product-differentiation strategy, firms will
simultaneously use multiple dimensions to examine employee performance
Product features, by themselves, are
usually not a source of sustained competitive advantage, but they can be a source of a temporary competitive advantage.
Under which of the following conditions is the product mix advantage as a basis of product differentiation the least difficult to duplicate?
when the base of a product mix advantage is a common customer
