,Name: Class: Date:
Chapter 2
1. A diversification strategy can be risky when a firm is entering unfamiliar markets.
a. True
b. False
ANSWER: True
RATIONALE: A diversification strategy can be risky when a firm is entering unfamiliar markets. See 2-3:
Strategic Alternatives
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS: A-head: Strategic Alternatives
Bloom's: Remember
BUSPROG: Analytic
Diversification
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 12:42 AM
CUSTOM ID: CGI: ABYQAS7600N8G16CZ730
QUESTION ID: JFND-GO4G-G3BU-KPTA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3U-
GOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMB-CFTU-O3TA-COAD-1PJ3-
COSU-OAUN-8YSS-NQMB-GOSU-KQMG-GCSU-RC5R-G7TG-CPBZ-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
2. A company's skills are functions—such as customer service and promotions—that the firm performs better than its
competitors.
a. True
b. False
ANSWER: True
RATIONALE: Skills are functions—such as customer service and promotions—that the firm performs better
than its competitors. Marketing managers should continually focus the firm's skills and assets
on sustaining and creating competitive advantages. See 2-6: Competitive Advantage
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS: A-head: Competitive Advantage
Bloom's: Remember
BUSPROG: Analytic
Sustainable Competitive Advantage
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 12:42 AM
CUSTOM ID: CGI: ANCJRTK309XAG33WG950
QUESTION ID: JFND-GO4G-G3BU-KP1G
Cengage Learning Testing, Powered by Cognero Page 1
,Name: Class: Date:
Chapter 2
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3U-
GOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMR-CR4D-Q3TZ-GRAS-KCMR-
CESU-1CT3-CESS-CPT1-GOSU-GA3T-CCSU-C3UG-CE3G-NPTU-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
3. A market segment is a group of individuals or organizations who share one or more characteristics.
a. True
b. False
ANSWER: True
RATIONALE: A market segment is a group of individuals or organizations who share one or more
characteristics. See 2-8: Describing the Target Market
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.08 - 2-8
TOPICS: A-head: Describing the Target Market
Bloom's: Remember
BUSPROG: Analytic
Target Markets
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 12:42 AM
CUSTOM ID: CGI: BBYJJVG6TBD57MHUF485
QUESTION ID: JFND-GO4G-G3BU-KP1F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3U-
GOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJW-GWAU-NCJI-8YAD-O3MF-
GASU-R3TI-CRSS-NPBW-GOSU-1C33-GRSS-RCJW-GRAS-KQBI-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
4. Organizations use product development strategies to serve customers in their existing markets.
a. True
b. False
ANSWER: True
RATIONALE: A product development strategy entails the creation of new products for present markets. See
2-3: Strategic Alternatives
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS: A-head: Strategic Alternatives
Bloom's: Remember
BUSPROG: Analytic
Product Development
DATE CREATED: 5/1/2015 4:22 PM
Cengage Learning Testing, Powered by Cognero Page 2
, Name: Class: Date:
Chapter 2
DATE MODIFIED: 5/26/2015 12:42 AM
CUSTOM ID: CGI: BGLZH0D41W9HNXZQ9048
QUESTION ID: JFND-GO4G-G3BU-KP1R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3U-
GOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJA-GIUD-Q3MF-GJOU-YQDD-
8YSS-CCB3-CRSS-RPTU-GOSS-NP5N-CASU-YQDG-8Y5D-YAJ3-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
5. A product/service differentiation competitive advantage refers to defining a business in terms of goods and services
rather than in terms of the benefits customers seek.
a. True
b. False
ANSWER: False
RATIONALE: A product/service differentiation competitive advantage exists when a firm provides
something that is unique and valuable to buyers beyond simply offering a lower price than
that of the competition. See 2-6: Competitive Advantage
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS: A-head: Competitive Advantage
Bloom's: Remember
BUSPROG: Analytic
Product Differentiation
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 12:42 AM
CUSTOM ID: CGI: CVKV0GQ74X1XT6TRA220
QUESTION ID: JFND-GO4G-G3BU-KP1D
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3U-
GOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMB-CC4G-GAUG-GE3U-RPT3-
CASU-O3JU-CRSU-OPTO-GOSU-K3TI-CWSU-RCJ1-G71U-RPUR-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
6. A company that sells paper stationery made of recycled materials, which no other paper manufacturing company in the
market has the ability produce, has a competitive advantage.
a. True
b. False
ANSWER: True
RATIONALE: A sustainable competitive advantage is one that cannot be copied by the competition. The
key to having a competitive advantage is the ability to sustain that advantage. See 2-6:
Competitive Advantage
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
Cengage Learning Testing, Powered by Cognero Page 3
Chapter 2
1. A diversification strategy can be risky when a firm is entering unfamiliar markets.
a. True
b. False
ANSWER: True
RATIONALE: A diversification strategy can be risky when a firm is entering unfamiliar markets. See 2-3:
Strategic Alternatives
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS: A-head: Strategic Alternatives
Bloom's: Remember
BUSPROG: Analytic
Diversification
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 12:42 AM
CUSTOM ID: CGI: ABYQAS7600N8G16CZ730
QUESTION ID: JFND-GO4G-G3BU-KPTA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3U-
GOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMB-CFTU-O3TA-COAD-1PJ3-
COSU-OAUN-8YSS-NQMB-GOSU-KQMG-GCSU-RC5R-G7TG-CPBZ-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
2. A company's skills are functions—such as customer service and promotions—that the firm performs better than its
competitors.
a. True
b. False
ANSWER: True
RATIONALE: Skills are functions—such as customer service and promotions—that the firm performs better
than its competitors. Marketing managers should continually focus the firm's skills and assets
on sustaining and creating competitive advantages. See 2-6: Competitive Advantage
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS: A-head: Competitive Advantage
Bloom's: Remember
BUSPROG: Analytic
Sustainable Competitive Advantage
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 12:42 AM
CUSTOM ID: CGI: ANCJRTK309XAG33WG950
QUESTION ID: JFND-GO4G-G3BU-KP1G
Cengage Learning Testing, Powered by Cognero Page 1
,Name: Class: Date:
Chapter 2
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3U-
GOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMR-CR4D-Q3TZ-GRAS-KCMR-
CESU-1CT3-CESS-CPT1-GOSU-GA3T-CCSU-C3UG-CE3G-NPTU-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
3. A market segment is a group of individuals or organizations who share one or more characteristics.
a. True
b. False
ANSWER: True
RATIONALE: A market segment is a group of individuals or organizations who share one or more
characteristics. See 2-8: Describing the Target Market
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.08 - 2-8
TOPICS: A-head: Describing the Target Market
Bloom's: Remember
BUSPROG: Analytic
Target Markets
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 12:42 AM
CUSTOM ID: CGI: BBYJJVG6TBD57MHUF485
QUESTION ID: JFND-GO4G-G3BU-KP1F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3U-
GOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJW-GWAU-NCJI-8YAD-O3MF-
GASU-R3TI-CRSS-NPBW-GOSU-1C33-GRSS-RCJW-GRAS-KQBI-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
4. Organizations use product development strategies to serve customers in their existing markets.
a. True
b. False
ANSWER: True
RATIONALE: A product development strategy entails the creation of new products for present markets. See
2-3: Strategic Alternatives
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS: A-head: Strategic Alternatives
Bloom's: Remember
BUSPROG: Analytic
Product Development
DATE CREATED: 5/1/2015 4:22 PM
Cengage Learning Testing, Powered by Cognero Page 2
, Name: Class: Date:
Chapter 2
DATE MODIFIED: 5/26/2015 12:42 AM
CUSTOM ID: CGI: BGLZH0D41W9HNXZQ9048
QUESTION ID: JFND-GO4G-G3BU-KP1R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3U-
GOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJA-GIUD-Q3MF-GJOU-YQDD-
8YSS-CCB3-CRSS-RPTU-GOSS-NP5N-CASU-YQDG-8Y5D-YAJ3-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
5. A product/service differentiation competitive advantage refers to defining a business in terms of goods and services
rather than in terms of the benefits customers seek.
a. True
b. False
ANSWER: False
RATIONALE: A product/service differentiation competitive advantage exists when a firm provides
something that is unique and valuable to buyers beyond simply offering a lower price than
that of the competition. See 2-6: Competitive Advantage
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS: A-head: Competitive Advantage
Bloom's: Remember
BUSPROG: Analytic
Product Differentiation
DATE CREATED: 5/1/2015 4:22 PM
DATE MODIFIED: 5/26/2015 12:42 AM
CUSTOM ID: CGI: CVKV0GQ74X1XT6TRA220
QUESTION ID: JFND-GO4G-G3BU-KP1D
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3U-
GOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMB-CC4G-GAUG-GE3U-RPT3-
CASU-O3JU-CRSU-OPTO-GOSU-K3TI-CWSU-RCJ1-G71U-RPUR-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
6. A company that sells paper stationery made of recycled materials, which no other paper manufacturing company in the
market has the ability produce, has a competitive advantage.
a. True
b. False
ANSWER: True
RATIONALE: A sustainable competitive advantage is one that cannot be copied by the competition. The
key to having a competitive advantage is the ability to sustain that advantage. See 2-6:
Competitive Advantage
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
Cengage Learning Testing, Powered by Cognero Page 3
