M370 Midterm

An industry is attractive for suppliers when the rivalry among existing competitors is A. High B. Low C. Cost-based D. Fragmented

A. High

With respect to the first portfolio diagram in the Lululemon mini case, which statement regarding Lululemon and Peloton is most correct? A. Lululemon's position with Mirror in the "interactive fitness market significantly trails Peloton B. Mirror is growing at the same rate as Peloton C. Peloton is such a different product from Mirror, that it does not have to regard Mirror as a significant competitor D. Lululemon's acquisition of Mirror can never exceed Lululemon's apparel business in size

A. Lululemon's position with Mirror in the "interactive fitness market significantly trails Peloton

Based on Ansoff's growth strategies, when Lululemon decided to expand its business internationally, it was employing a ----------growth strategy. A. Market development B. Global C. Penetration D. Diversification

A. Market development

Selling Lululemon's assortment of athleisure products online and through traditional "brick and mortar" stores represents a good example of Ansoff's definition of a ---------- growth strategy. A. Penetration B. Expansion C. Diversification D. Market development

A. Penetration

Benefit segmentation is a type of product related segmentation A. That focuses on the attributes that consumers seek from a product B. That can serve as a post-purchase customer satisfaction tool C. That determines the marketer's effectiveness at satisfying the customer D. That is used to create a psychographic profile of the benefit of having the product as part of the evoked set

A. That focuses on the attributes that consumers seek from a product

Streaming video represented a severe threat to companies like Blockbuster which rented videos to consumers. Which of Porter's Five Forces did this threat arise from? A. Threat of substitutes B. Competitive rivalry C. Threat from new entrants D. Consumer buyer power

A. Threat of substitutes

Like Lululemon, most consumer product firms find it appropriate to use more than one of Ansoff's growth strategies for different products at the same time. A. True B. False

A. True

In communicating the unique customer benefits of its various products to its target segments, Thermos is defining its ________,which is an important element of its overall _______strategy. A. Value proposition, positioning B. Target segment, positioning C. Value proposition, perceptual mapping D. Value proposition, segmentation E. Value proposition, targeting

A. Value proposition, positioning

What is the main purpose of Porter's Five Forces Model? A. Manage product portfolios B. Inform investment appraisal decisions C. Decide which products to focus on D. Analyze competition in a market

D. Analyze competition in a market

When suppliers are limited or inputs are scarce, which of Porter's five Forces are at play? A. Bargaining power of customers B. Threat of substitute products C. Threat of substitute products D. Bargaining power of suppliers

D. Bargaining power of suppliers

The acquisition of "Mirror" represents a clear example of which of Ansoff's growth strategies? A. Market Development B. Product Development C. Penetration D. Diversification

D. Diversification

When WalMart requires its suppliers to include RFID tags to the products it sells WalMart, this could be an example of A. Threat of substitutes B. High supplier power C. Competitive rivalry D. High Buyer power

D. High Buyer power

The BCG matrix combines "relative market share" and "market growth" as its two principal dimensions. which of those two dimensions can best be described as a measure of overall market attractiveness? A. Neither term is meant to describe overall market attractiveness B. Relative market share C. Both terms measure overall market attractiveness D. Market growth

D. Market growth

According to Porter, which of the following is most important to achieving a competitive advantage? A. Focusing on becoming the most competitive business within the sector/market B. Outsourcing activities that enhance/refine your competitive advantage C. Serving all customers equally rather than simply targeting the most profitable D. Operating at lower cost, commanding a premium price, or both

D. Operating at lower cost, commanding a premium price, or both

A market will usually be more difficult to enter if there is A. Common technology B. Low brand loyalty C. Wide access to distribution channels D. Patented or proprietary know-how

D. Patented or proprietary know-how

Which element of segment attractiveness is Thermos addressing by increasing the availability of its products on retailers' shelves by working with retailers so that they understand Thermos' segmentation strategy? A. Identifiable B. Profitable C. Responsive D. Reachable E. Substantial

D. Reachable

Which of the following forces is commonly reduced through the use of a customer loyalty program A. Rivalry among existing competitors B. Buyer power C. Threat of new entrants D. Supplier power

B. Buyer power

Which of Ansoff's growth strategies most likely requires the firm to acquire new capabilities such as specialized labor, technology, marketing research, etc. to support its success with the strategy? A. Product development B. Diversification C. Market penetration D. Globalization

B. Diversification

A customer goes the a supermarket and has many choices for branded toothpaste, i.e., Crest, Colgate, Tom's, etc.. This is an example of A. Competitive entry B. High buyer power C. Threat of substitutes D. High supplier power

B. High buyer power

Which of the following represents the presence of supplier power in Porter's Five Forces Model? A. High when the supplier has a proprietary technology in its manufacturing B. High when buyers have few choices of whom to buy from and low when their choices are many C. High when buyers have many choices of whom to buy from and low when their choices are few D. Low when buyers have few choices of whom to buy from and low when their choices are many

B. High when buyers have few choices of whom to buy from and low when their choices are many

Lululemon traditionally produced yoga and "athleisure wear" products, initially targeted for women. When Lululemon began to produce athleisure wear for men, that change represented which of Ansoff's growth strategies? A. Product development B. Market Development C. Diversification D. Market expansion

B. Market Development

The Cook and Carry, targeted to Epicureans, is cordless and easily portable. This is an example of A. Psychographic segmentation B. Demographic segmentation C. Benefit segmentation D. Behavioral segmentation E. Geographic segmentation

C. Benefit segmentation

In identifying market segments, Thermos combines geography, demographics, and lifestyle measures. This mixture of segmentation schemes is called A. Psychographics B. Segment mixing C. Geodemographics D. Positioning E. VALS

C. Geodemographics

Referring back to the Ansoff Growth Matrix, what would you say is Thermos' primary growth strategy? A. Product development B. Diversification C. Market development and product development D. Market development E. Penetration

C. Market development and product development

To be effective, the process of market segmentation must meet which of these basic requirements: A. A viable market segment must have measurable purchasing power and size B. The market segment must reflect the population's changing attitudes and lifestyle C. The firm must expand beyond its current marketing capabilities to capture growing markets D. Customers must interact with each other E. A firm must avoid focusing on variables such as customer volume and size

A. A viable market segment must have measurable purchasing power and size

Identify which of the following forces does not form part of Porter's Competitive Forces Analysis A. Competitive Rivalry B. Threat of Substitutes C. Risk of losses D. Power of Buyers

C. Risk of losses

When a firm has a "large number" of products in the upper right quadrant of the BCG matrix, a very common concern is A. How to reinvest the cash that products in the upper left quadrant generate B. Whether products in the upper left quadrant have sufficient growth potential C. Whether it can adequately support the growth requirements of all the products in that quadrant D. How to ensure that the products in the upper left quadrant migrate over time to the bottom right quadrant.

C. Whether it can adequately support the growth requirements of all the products in that quadrant

What is likely to happen if many new business firms enter a market? A. Competitive rivalry will intensify B. Barriers to entry will rise C. Industry capacity will fall D. Industry profits will rise

A. Competitive rivalry will intensify

Which of the following is not an example of a behavioral segmentation variable? A. Consumer psychographics B. Shopping habits C. Purchase occasion D. Product usage E. Media habits

A. Consumer psychographics

Thermos develops different mugs and containers for different segments. Thermos is using a(n) ________targeting strategy. A. Differentiated B. Mass marketing C. Micromarketing D. Undifferentiated E. Concentrated

A. Differentiated

Based on the second portfolio diagram in the mini case, which should be a primary concern for Lululemon management based on the BCG Portfolio approach? A. Having sufficient resources to support all of its products and markets B. Increasing its product lines to dominate the athleisure and interactive fitness markets C. Diversifying out of unrelated businesses such as cosmetics and self-care products D. Making sure that it provides equal support to all of its products and markets

A. Having sufficient resources to support all of its products and markets

If the threat of substitute products of services is low, it is a(n) A. Advantage to the buyer B. Indication of high competitive rivalry C. Advantage to the supplier D. Disadvantage to the supplier

C. Advantage to the supplier

When buyers are able to join together to put pressure on a supplier, this is a description of which of Porter's Five Forces? A. Threat of new entrants B. Competitive rivalry C. Bargaining power of customers D. The threat of substitute products

C. Bargaining power of customers

Which of these situations is likely to result in high bargaining power of suppliers? A. Resource inputs are not essential to product quality B. There are many alternative sources of production inputs C. Many customers with low brand loyalty D. A few large suppliers dominate the market supply of inputs

D. A few large suppliers dominate the market supply of inputs

The video mentions how Thermos considers "how you see yourself" when segmenting its market. In psychographic terms, "how you see yourself" is called A. A VALS group B. Self values C. Geodemographics D. Lifestyle E. Self concept

E. Self concept