Ch. 18 Quiz Questions

What is a strategic​ group? A. A group of firms in an industry following the same or a similar strategy in a given target market B. A group of firms in an industry that target different markets with different strategies C. A group of firms in different industries that follow similar strategies D. A group of firms in an industry that do not compete with one another E. A group of firms in an industry following different strategies

A

Companies such as Walmart and Spirit Airlines offer lower prices than competitors. Which competitive strategy are they​ using? A. Price leadership B. Overall cost leadership C. Middle-of-the-road D. Focus E. Differentiation

B

There are three ways that market leaders can expand total market demand. They can expand total demand by​ __________. A. encouraging more usage of its​ products, driving out​ competitors, and finding a niche for the product B. finding new users of the​ product, promoting new uses for the​ product, and encouraging more usage of its products C. finding new users of the​ product, promoting new uses for the​ product, and aggressively cutting price D. finding new users of the​ product, finding a niche for the​ product, and encouraging more usage of its products E. finding new users of the​ product, promoting new uses for the​ product, and driving out competitors

B

Which of the following conditions would enable higher market share to produce higher​ profits? A. when the company fails to break even B. when unit costs drop as market share increases C. when production volume remains unaltered as market share increases D. when unit costs increase as market share increases E. when production volume drops as market share increases

B

​Ritz-Carlton focuses on the top 5 percent of corporate and leisure travelers. This represents​ a(n) __________ strategy. A. differentiation B. focus C. challenger D. overall cost leadership E. middle-of-the-road

B

According to the​ text, digital services that overlap with traditional newspaper content are​ __________ because they​ offer, for​ free, real-time content that​ subscription-based newspapers printed once a day​ can't match. A. good competitors B. unethical competitors C. bad competitors D. weak competitors E. not competitors

C

According to the​ text, what is the best way a market leader can protect its market share​ position? A. Through fixing weaknesses B. Through operational excellence C. Through continuous innovation D. Through specialization E. Through differentiation

C

An industry often contains​ "good" and​ "bad" competitors. Good competitors​ ________. A. typically dominate the market B. ensure minimum competition between firms C. play by the rules of the industry D. break the rules of fair competition E. share their marketing strategies with other firms

C

Companies that pursue a clear strategy will likely perform well. Firms that do not pursue a clear strategy are called​ ________. A. jack-of-all-trades B. niches C. middle-of-the-roaders Your answer is correct. D. red oceans E. laggards

C

What are the three winning competitive positioning strategies proposed by Michael​ Porter? A. Overall cost​ leadership, middle-of-the-road, and focus B. Overall cost​ leadership, differentiation, and​ middle-of-the-road C. Overall cost​ leadership, differentiation, and focus D. Operational​ excellence, customer​ intimacy, and product leadership E. Entrepreneurial​ marketing, formulated​ marketing, and intrapreneurial marketing

C

What is benchmarking used​ for? A. To assess​ competitor's profitability B. To assess​ competitor's objectives and strategies C. To assess​ competitor's strengths and weaknesses D. To identify a​ company's competitors E. To identify​ competitor's reaction patterns

C

What is the goal of a​ blue-ocean strategy? A. To drive competitors out of business B. To avoid strong competitors C. To make competition irrelevant by finding uncontested market spaces D. To attack competitors E. To compete only with weak competitors

C

Defining competitors as "companies that are trying to satisfy the same customer need or build relationships with the same customer group" is using​ a(n) __________ point of view. A. industry B. myopic C. product D. market E. competitive

D

Gaining​ ________ requires delivering more value and satisfaction to target consumers than competitors do. A. differentiation B. comparative advantage C. economies of scale D. competitive advantage E. first-mover advantage

D

In competitive​ positioning, __________ are​ runner-up firms that want to hold their share without rocking the boat. A. market leaders B. product leaders C. market challengers D. market followers E. market nichers

D

Porsche is a German automobile manufacturer that competes against BMW and​ Audi, but only in the sports car and SUV segments of the automobile market. Porsche utilizes​ a(n) ________ strategy. A. market segmentation B. middle-of-the-roaders C. overall cost leadership D. focus E. blue ocean

D

Regarding their competitive​ position, Walmart,​ Amazon, Coca-Cola, and Facebook are all examples of​ __________. A. global firms B. market challengers C. well-known companies D. market leaders E. market nichers

D

To plan effective marketing​ strategies, a company needs to find out all it can about its competitors. It must constantly compare its marketing​ strategies, products,​ prices, channels, and promotions with those of close competitors. This is an example of​ ________. A. quantitative analysis B. perfect competition C. blue ocean strategy D. competitor analysis E. organizational evaluation

D

What is the first thing a company does when analyzing​ competitors? A. Select which competitors to avoid. B. Assess the​ competitor's objectives and strategies. C. Assess​ competitor's strengths and weaknesses. D. Identify the​ company's competitors. E. Select which competitors to attack.

D

Which of the following statements regarding a customer intimacy strategy is​ correct? A. A customer intimacy strategy offers generic products to the target market. B. A customer intimacy strategy attempts to create a lean value delivery system. C. A customer intimacy strategy does not require market segmentation. D. A customer intimacy strategy requires quickly responding to customer needs. E. A customer intimacy strategy serves customers who demand a lower price.

D

​Kodak's film business​ didn't lose out to direct competitor​ Fujifilm; it lost out to​ Sony, Canon, and other digital camera​ makers, along with a host of digital image developers and online image sharing services. This is an example of​ ________. A. a blue ocean strategy B. competitor backlinking C. marketing myopia D. competitor myopia E. self-competition

D

Country Kitchen and Perkins are both a chain of family restaurants featuring​ diner-like menus with reasonably priced items. These companies are in the same​ ________. A. experimental group B. control group C. focus group D. target group E. strategic group

E

What is the LEAST relevant question to ask when assessing a​ firm's main​ competitor? A. What are the​ competitor's objectives? B. What are the​ competitor's strengths? C. What is the​ competitor's strategy? D. What are the​ competitor's weaknesses? E. What are the​ competitor's locations?

E

Which of the following statements regarding identifying competitors is​ correct? A. Companies should take a myopic view of competitors. B. Identifying competitors is a simple task. C. Competitors are only those companies that offer similar products and services to the same customers at similar prices. D. Competitive analysis is only useful when competitors are identified at the industry level. E. There is no one correct way to identify competitors.

E

Which of the following strategies would be utilized by a market​ challenger? A. Protect their current market share through good defensive and offensive actions. B. Expand total demand. C. Find one or more market niches that are safe and profitable. D. Expand their market share further. E. Observe what has made the market leader successful and improve on it.

E