WPC 480 - Chapter 6 Questions With
Complete Solutions
Differentiation strategy Generic business strategy that seeks to create higher value for
customers than the value that competitors create.
Cost leadership strategy Generic business strategy that seeks to create the same or similar
value for customer at a lower cost.
Scope of competition The size- narrow or broad - of the market in which a firm chooses to
compete.
Focused cost leadership strategy Same as the cost-leadership strategy except with a
narrow focus on a niche market.
Focused differentiation strategy Same as the differentiation strategy except with a narrow
focus on a niche market.
Increase the perceived value The goal of a differentiation strategy is to add unique
features that will ______ ______ ______ ______ of goods and services in the minds of
consumers so they are willing to pay a higher price.
, WPC 480 - Chapter 6 Questions With
Complete Solutions
Economies of scope Savings that come from producing two (or more) outputs at less cost
than producing each output individually, despite using the same resources and technology.
Most salient value drivers 1. Product features
2. Customer service
3. Compliments
Value drivers ______ ______ area related to a firm's expertise in, and organization of,
different internal value chain activities.
Customer service Managers can increase the perceived value of their firms' product or
service offerings by focusing on ______ ______.
Complements ______ add value to a product or service when they are consumed in
tandem.
Complete Solutions
Differentiation strategy Generic business strategy that seeks to create higher value for
customers than the value that competitors create.
Cost leadership strategy Generic business strategy that seeks to create the same or similar
value for customer at a lower cost.
Scope of competition The size- narrow or broad - of the market in which a firm chooses to
compete.
Focused cost leadership strategy Same as the cost-leadership strategy except with a
narrow focus on a niche market.
Focused differentiation strategy Same as the differentiation strategy except with a narrow
focus on a niche market.
Increase the perceived value The goal of a differentiation strategy is to add unique
features that will ______ ______ ______ ______ of goods and services in the minds of
consumers so they are willing to pay a higher price.
, WPC 480 - Chapter 6 Questions With
Complete Solutions
Economies of scope Savings that come from producing two (or more) outputs at less cost
than producing each output individually, despite using the same resources and technology.
Most salient value drivers 1. Product features
2. Customer service
3. Compliments
Value drivers ______ ______ area related to a firm's expertise in, and organization of,
different internal value chain activities.
Customer service Managers can increase the perceived value of their firms' product or
service offerings by focusing on ______ ______.
Complements ______ add value to a product or service when they are consumed in
tandem.
