Question 1

Which of the following bases of Coach's competitive advantage is likely to be the most difficult to duplicate?

Accepted Answer

A)   Product features
B)   Consumer marketing
C)   Location
D)   Reputation

Question 2

Timing,location,distribution channels,and service and support are all very similar bases of product differentiation and can act as substitutes for each other.

Accepted Answer

A) True 
 B)False

Question 3

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 know as a(n)

Accepted Answer

A)   altruistic price.
B)   hedonic price.
C)   fair market value.
D)   margin price.

Question 4

Which of the following bases of product differentiation is almost always easy to duplicate?

Accepted Answer

A)   Product features
B)   Product mix
C)   Product customization
D)   Consumer marketing

Question 5

The price premium that customers are willing to pay for the superior quality and perceived prestige of Coach's products over the prices of similar products are known as

Accepted Answer

A)   marginal prices.
B)   hedonic prices.
C)   heroic prices.
D)   elastic prices.

Question 6

Firms able to successfully differentiate their products and services are likely to see a decrease in their volume of sales.

Accepted Answer

A) True 
 B)False

Question 7

Which generic business level strategy is Coach pursuing?

Accepted Answer

A)   Cost leadership
B)   Related diversification
C)   Product differentiation
D)   Unrelated diversification

Question 8

Research on architectural competence in pharmaceutical firms suggests that

Accepted Answer

A)   not only do some firms possess this competence,but that other firms do not; firms without this competence have,on average,been able develop it with minimal investment.
B)   very few firms possess this competence,but firms without this competence,on average,are able to develop it.
C)   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.
D)   virtually every firm possesses this competence to some extent.

Question 9

In general,firms selling differentiated products face a demand curve that is

Accepted Answer

A)   upward sloping.
B)   horizontal.
C)   vertical.
D)   downward sloping.

Question 10

Which of the following statements regarding the impact of product differentiation on the threat of new entry is accurate?

Accepted Answer

A)   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.
B)   Product differentiation increases the threat of new entry by allowing potential new entrants to avoid costs associated with overcoming incumbent firms' product-differentiation advantages.
C)   Product differentiation has no impact on the threat of new entry.
D)   It is not possible to determine the impact of product differentiation on the threat of new entry.

Question 11

Wal-Mart exemplifies a firm pursuing a product-differentiation strategy while Victoria's Secret exemplifies a firm pursuing a cost-leadership strategy.

Accepted Answer

A) True 
 B)False

Question 12

While the U-form structure for a firm pursuing cost leadership is relatively simple,the U-form structure for a firm implementing a product-differentiation strategy can be somewhat more complex.

Accepted Answer

A) True 
 B)False

Question 13

When the television show "American Idol" shows the judges drinking beverages from cups with the Coca-Cola label,or when a corporate sponsor places its logo on a NASCAR car,this is an attempt at product differentiation by linking with other firms through

Accepted Answer

A)   product placements.
B)   reputation.
C)   product mix.
D)   architectural competence.

Question 14

Product features,by themselves,are

Accepted Answer

A)   usually not a source of temporary competitive advantage,but they can be a source of a sustainable competitive advantage.
B)   usually not a source of either a temporary competitive advantage,or a source of a sustainable competitive advantage.
C)   usually can be a source of both a temporary competitive advantage and a source of a sustainable competitive advantage.
D)   usually not a source of sustained competitive advantage,but they can be a source of a temporary competitive advantage.

Question 15

McDonald's is an excellent example of a firm that simultaneously employs both a product-differentiation and a cost-leadership strategy since their product differentiation based on cleanliness,consistency and fun in its fast food outlets allowed the company to become the market share leader in the industry and to reduce its costs.

Accepted Answer

A) True 
 B)False

Question 16

The business level strategy Coach is pursuing is likely to

Accepted Answer

A)   reduce the threat of rivalry to virtually zero.
B)   increase the threat of substitutes due to premium pricing.
C)   decrease the threat of new entrants due to the additional cost they would face to overcome Coach's reputation advantages.
D)   decrease the threat of buyers since Coach can lower its prices due to its efficient manufacturing operations.

Question 17

While firms often alter the objective properties of their products or services in order to implement a product-differentiation strategy,the existence of product differentiation is always a matter of customer perception.

Accepted Answer

A) True 
 B)False

Question 18

________ 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.

Accepted Answer

A)   Product differentiation
B)   Related diversification
C)   Cost leadership
D)   Best-cost provider

Question 19

According to Chamberlin,firms selling differentiated products and facing a downward sloping demand curve are in an industry described as

Accepted Answer

A)   perfect competition.
B)   monopolistic competition.
C)   oligopolistic competition.
D)   semi-structured competition.

Question 20

Cross-functional product development teams are suitable for a firm pursuing a ________ strategy.

Accepted Answer

A)   cost-leadership
B)   confrontation
C)   product-differentiation
D)   stuck-in-the-middle

Exam 5: Product Differentiation

Which of the following bases of Coach's competitive advantage is likely to be the most difficult to duplicate?

Correct Answer
verified

Research on architectural competence in pharmaceutical firms suggests that

Correct Answer
verified

________ 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.

Correct Answer
verified

While firms often alter the objective properties of their products or services in order to implement a product-differentiation strategy,the existence of product differentiation is always a matter of customer perception.

Correct Answer
verified

Which of the following statements regarding the impact of product differentiation on the threat of new entry is accurate?

Correct Answer
verified

Which of the following bases of product differentiation is almost always easy to duplicate?

Correct Answer
verified

Wal-Mart exemplifies a firm pursuing a product-differentiation strategy while Victoria's Secret exemplifies a firm pursuing a cost-leadership strategy.

Correct Answer
verified

Firms able to successfully differentiate their products and services are likely to see a decrease in their volume of sales.

Correct Answer
verified

While the U-form structure for a firm pursuing cost leadership is relatively simple,the U-form structure for a firm implementing a product-differentiation strategy can be somewhat more complex.

Correct Answer
verified

In general,firms selling differentiated products face a demand curve that is

Correct Answer
verified

Cross-functional product development teams are suitable for a firm pursuing a ________ strategy.

Correct Answer
verified

The business level strategy Coach is pursuing is likely to

Correct Answer
verified

The price premium that customers are willing to pay for the superior quality and perceived prestige of Coach's products over the prices of similar products are known as

Correct Answer
verified

Which generic business level strategy is Coach pursuing?

Correct Answer
verified

Correct Answer
verified

Product features,by themselves,are

Correct Answer
verified

According to Chamberlin,firms selling differentiated products and facing a downward sloping demand curve are in an industry described as

Correct Answer
verified

Timing,location,distribution channels,and service and support are all very similar bases of product differentiation and can act as substitutes for each other.

Correct Answer
verified

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 know as a(n)

Correct Answer
verified

When the television show "American Idol" shows the judges drinking beverages from cups with the Coca-Cola label,or when a corporate sponsor places its logo on a NASCAR car,this is an attempt at product differentiation by linking with other firms through

Correct Answer
verified

Exam 5: Product Differentiation

Which of the following bases of Coach's competitive advantage is likely to be the most difficult to duplicate?

Correct AnswerverifiedShow Answer

Research on architectural competence in pharmaceutical firms suggests that

Correct AnswerverifiedShow Answer

________ 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.

Correct AnswerverifiedShow Answer

While firms often alter the objective properties of their products or services in order to implement a product-differentiation strategy,the existence of product differentiation is always a matter of customer perception.

Correct AnswerverifiedShow Answer

Which of the following statements regarding the impact of product differentiation on the threat of new entry is accurate?

Correct AnswerverifiedShow Answer

Which of the following bases of product differentiation is almost always easy to duplicate?

Correct AnswerverifiedShow Answer

Wal-Mart exemplifies a firm pursuing a product-differentiation strategy while Victoria's Secret exemplifies a firm pursuing a cost-leadership strategy.

Correct AnswerverifiedShow Answer

Firms able to successfully differentiate their products and services are likely to see a decrease in their volume of sales.

Correct AnswerverifiedShow Answer

While the U-form structure for a firm pursuing cost leadership is relatively simple,the U-form structure for a firm implementing a product-differentiation strategy can be somewhat more complex.

Correct AnswerverifiedShow Answer

In general,firms selling differentiated products face a demand curve that is

Correct AnswerverifiedShow Answer

Cross-functional product development teams are suitable for a firm pursuing a ________ strategy.

Correct AnswerverifiedShow Answer

The business level strategy Coach is pursuing is likely to

Correct AnswerverifiedShow Answer

The price premium that customers are willing to pay for the superior quality and perceived prestige of Coach's products over the prices of similar products are known as

Correct AnswerverifiedShow Answer

Which generic business level strategy is Coach pursuing?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Product features,by themselves,are

Correct AnswerverifiedShow Answer

According to Chamberlin,firms selling differentiated products and facing a downward sloping demand curve are in an industry described as

Correct AnswerverifiedShow Answer

Timing,location,distribution channels,and service and support are all very similar bases of product differentiation and can act as substitutes for each other.

Correct AnswerverifiedShow Answer

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 know as a(n)

Correct AnswerverifiedShow Answer

When the television show "American Idol" shows the judges drinking beverages from cups with the Coca-Cola label,or when a corporate sponsor places its logo on a NASCAR car,this is an attempt at product differentiation by linking with other firms through

Correct AnswerverifiedShow Answer

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