Chapter 5 BSG Quiz Practice Test
Exam 2026/2027 Updated
Verified Questions and Solutions
A+ Pass Guaranteed
1. A low-cost leader's foremost strategic objective is
- ANS - achieving meaningfully lower costs than rivals--
but not necessarily the absolute lowest possible cost.
2. A company can translate a low-cost advantage over rivals
into attractive profit performance by
- ANS - either (1) charging a price comparable to other low
price drivers on, being content with the resulting sales
volume and market share and relying upon the low-cost
edge over rivals to earn a bigger profit margin per unit
sold thereby boosting the form total profit and return on
investment. Or (2) using its low cost edge underprice
competitors and attract price sensitive buyers in great
enough numbers to increase total profits
3. Which of the following is not one of the five generic types
of competitive strategy
- ANS - a superior customer service strategy
, 4. which of the following is not an action that a company
can take to do a better job than rivals of performing value
chain activities more cost-effectively?
- ANS - minimize reliance on any of the various cost-
drivers shown in figure 5.2 to achieve cost savings
5. the two biggest factors that distinguish one competitive
strategy from another concern
- ANS - whether a company's market target is broad or
narrow and whether the company is pursuing a
competitive advantage linked to low costs or
differentiation
6. a broad differentiation strategy generally works best for a
company in situations where
- ANS - Buyer needs and uses of the product are diverse,
there are many ways to differentiate the product or
service that have value to buyers, and few rivals are
pursuing a similar differentiation approach.
7. a strategy to be there industry's overall low-cost provider
tends to be more appealing than a differentiation or best-
cost or focused (or market niche) strategy when
- ANS - buyers incur low costs in switching their
purchases from one seller to another and the products of
Exam 2026/2027 Updated
Verified Questions and Solutions
A+ Pass Guaranteed
1. A low-cost leader's foremost strategic objective is
- ANS - achieving meaningfully lower costs than rivals--
but not necessarily the absolute lowest possible cost.
2. A company can translate a low-cost advantage over rivals
into attractive profit performance by
- ANS - either (1) charging a price comparable to other low
price drivers on, being content with the resulting sales
volume and market share and relying upon the low-cost
edge over rivals to earn a bigger profit margin per unit
sold thereby boosting the form total profit and return on
investment. Or (2) using its low cost edge underprice
competitors and attract price sensitive buyers in great
enough numbers to increase total profits
3. Which of the following is not one of the five generic types
of competitive strategy
- ANS - a superior customer service strategy
, 4. which of the following is not an action that a company
can take to do a better job than rivals of performing value
chain activities more cost-effectively?
- ANS - minimize reliance on any of the various cost-
drivers shown in figure 5.2 to achieve cost savings
5. the two biggest factors that distinguish one competitive
strategy from another concern
- ANS - whether a company's market target is broad or
narrow and whether the company is pursuing a
competitive advantage linked to low costs or
differentiation
6. a broad differentiation strategy generally works best for a
company in situations where
- ANS - Buyer needs and uses of the product are diverse,
there are many ways to differentiate the product or
service that have value to buyers, and few rivals are
pursuing a similar differentiation approach.
7. a strategy to be there industry's overall low-cost provider
tends to be more appealing than a differentiation or best-
cost or focused (or market niche) strategy when
- ANS - buyers incur low costs in switching their
purchases from one seller to another and the products of
