Strategic Management Exam 2 UPDATED ACTUAL Questions
and CORRECT Answers
D What is the purpose of a segmentation analysis?
A. It provides the strategist in mapping and understanding a firm's potential
sources of competitive advantage by decomposing the firm into strategically
important activities
B. It provides the decision maker with an efficient mechanism for reducing
uncertainty using an inferential procedure to test the credibility of a potential
solution to a strategic challenge
C. It provides insight into the options that a firm has when it wishes to expand into
a new market
D. It provides means to understand and partition a broad consumer or business
market into subgroups of consumers or businesses (called segments), such that a
firm can effectively target specific segments rather than the market as a whole
B Which of the following is not a rationale for effective segmentation analysis to
drive competitive advantage and superior performance?
A. Identify segments of industry demand and unique abilities to serve particular
segments
B. The core belief around understanding value resources that the firm has that can
be the source of competitive advantage.
C. Target specific segments of demand that they are able to serve
D. Develop specific strategies for each targeted market segment
A ________________________________________________________________ is the notion not only that customers display differences in current
and past characteristics but also that these differences are predictors of their
future behavior.
A. Market heterogeneity
B. Market homogeneity
C. Firm heterogeneity
D. Firm homogeneity
A In a segmentation analysis, what does S-T-P refer to?
A. Segmentation, Positioning & Targeting
B. Scientifically Treated Petroleum
C. Solvable, Pertinent, Technical
D. Stone, Temple Pilots
E 5 _________ refers to the extent to which managers can identify or recognize
distinct groups within the marketplace.
A. Responsive
B. Accessible
C. Substantial
D. Actionable
E. Identifiable
, B _____________________________________________________________ refers to the extent to which a segment or group of customers
represents a sufficient size to be profitable. This could mean sufficiently large in
number of people or in purchasing power.
A. Actionable
B. Substantial
C. Responsive
D. Accessible
E. Identifiable
E _____________________________________________________________ refers to the extent to which marketers can reach the targeted segments
with promotional or distribution efforts.
A. Identifiable
B. Substantial
C. Actionable
D. Responsive
E. Accessible
E _____________________________________________________________ refers to the extent to which consumers in a defined segment are likely
to respond to marketing offers targeted at them.
A. Substantial
B. Actionable
C. Identifiable
D. Accessible
E. Responsive
D _____________________________________________________________ refers to the degree to which segments provide guidance for marketing
decisions.
A. Responsive
B. Identifiable
C. Substantial
D. Actionable
E. Accessible
C Which of the following is not a classic limitation of a Segmentation Analysis?
A. It can be difficult to manage the balance between becoming too niche and too
broad
B. Segments are almost never static
C. The segment has many large firms competing there
D. For some undifferentiated products, economies of scale and scope may render
the mass market to be the most attractive segment
C Which of the following is not one of Porter's generic business level strategies?
A. Cost Leadership
B. Differentiation
C. Economies of Scale
D. Focus
and CORRECT Answers
D What is the purpose of a segmentation analysis?
A. It provides the strategist in mapping and understanding a firm's potential
sources of competitive advantage by decomposing the firm into strategically
important activities
B. It provides the decision maker with an efficient mechanism for reducing
uncertainty using an inferential procedure to test the credibility of a potential
solution to a strategic challenge
C. It provides insight into the options that a firm has when it wishes to expand into
a new market
D. It provides means to understand and partition a broad consumer or business
market into subgroups of consumers or businesses (called segments), such that a
firm can effectively target specific segments rather than the market as a whole
B Which of the following is not a rationale for effective segmentation analysis to
drive competitive advantage and superior performance?
A. Identify segments of industry demand and unique abilities to serve particular
segments
B. The core belief around understanding value resources that the firm has that can
be the source of competitive advantage.
C. Target specific segments of demand that they are able to serve
D. Develop specific strategies for each targeted market segment
A ________________________________________________________________ is the notion not only that customers display differences in current
and past characteristics but also that these differences are predictors of their
future behavior.
A. Market heterogeneity
B. Market homogeneity
C. Firm heterogeneity
D. Firm homogeneity
A In a segmentation analysis, what does S-T-P refer to?
A. Segmentation, Positioning & Targeting
B. Scientifically Treated Petroleum
C. Solvable, Pertinent, Technical
D. Stone, Temple Pilots
E 5 _________ refers to the extent to which managers can identify or recognize
distinct groups within the marketplace.
A. Responsive
B. Accessible
C. Substantial
D. Actionable
E. Identifiable
, B _____________________________________________________________ refers to the extent to which a segment or group of customers
represents a sufficient size to be profitable. This could mean sufficiently large in
number of people or in purchasing power.
A. Actionable
B. Substantial
C. Responsive
D. Accessible
E. Identifiable
E _____________________________________________________________ refers to the extent to which marketers can reach the targeted segments
with promotional or distribution efforts.
A. Identifiable
B. Substantial
C. Actionable
D. Responsive
E. Accessible
E _____________________________________________________________ refers to the extent to which consumers in a defined segment are likely
to respond to marketing offers targeted at them.
A. Substantial
B. Actionable
C. Identifiable
D. Accessible
E. Responsive
D _____________________________________________________________ refers to the degree to which segments provide guidance for marketing
decisions.
A. Responsive
B. Identifiable
C. Substantial
D. Actionable
E. Accessible
C Which of the following is not a classic limitation of a Segmentation Analysis?
A. It can be difficult to manage the balance between becoming too niche and too
broad
B. Segments are almost never static
C. The segment has many large firms competing there
D. For some undifferentiated products, economies of scale and scope may render
the mass market to be the most attractive segment
C Which of the following is not one of Porter's generic business level strategies?
A. Cost Leadership
B. Differentiation
C. Economies of Scale
D. Focus
