MGMT 352 Purdue Questions with
complete solution 2025/2026
It appears that Google has a sustained competitive advantage because _________.
A. They are highly profitable and growing
B. They have outperformed rivals consistently over time
C. They currently have the leading online search engine
D. They are willing to take on the Chinese government - correct answer ✔B
What is the definition of sustainable competitive advantage? - correct answer ✔Outperforming
competitors or the industry for a sustained period of time
What is competitive parity? - correct answer ✔performance of two or more firms at the same level
What are the rewards of superior value creation and capture? - correct answer ✔profitability and
market share
. ___________ and ____________ are the two focused generic business strategies.
A. Focused differentiation; focused low-cost
B. Integration; focused low-cost
C. Integration; focused differentiation
D. Cost leadership; differentiation - correct answer ✔B
What does AFI stand for? - correct answer ✔
, . Entrepreneurs generally produce which type of innovation?
A. Radical
B. Speculative
C. Reverse
D. Incremental - correct answer ✔A
Non-price competition such as today's rivalry between Coca-Cola and Pepsi refers to:
A. When one firm cuts prices to gain market share, the competition will do the same.
B. When a firm is driving costs down in order to gain competitive advantages through lower prices.
C. When a firm has no pricing power that leads to a competitive disadvantage.
D. When a firm is offering unique products and services as opposed to competing on price - correct
answer ✔D
. ____________ is created when a customer is willing to pay more for a good or service than it costs the
firm to produce it.
A. Economic value
B. Product value
C. Consumer value
D. Economic advantage - correct answer ✔A
A low-cost firm can still gain a competitive advantage even without differentiation parity as long as:
A. Its differentiation appeal is in parity with the competition.
B. Its costs are higher than the competition.
C. Its economic value creation exceeds that of the competition.
D. Its economic value creation is the same as the competition. - correct answer ✔C
complete solution 2025/2026
It appears that Google has a sustained competitive advantage because _________.
A. They are highly profitable and growing
B. They have outperformed rivals consistently over time
C. They currently have the leading online search engine
D. They are willing to take on the Chinese government - correct answer ✔B
What is the definition of sustainable competitive advantage? - correct answer ✔Outperforming
competitors or the industry for a sustained period of time
What is competitive parity? - correct answer ✔performance of two or more firms at the same level
What are the rewards of superior value creation and capture? - correct answer ✔profitability and
market share
. ___________ and ____________ are the two focused generic business strategies.
A. Focused differentiation; focused low-cost
B. Integration; focused low-cost
C. Integration; focused differentiation
D. Cost leadership; differentiation - correct answer ✔B
What does AFI stand for? - correct answer ✔
, . Entrepreneurs generally produce which type of innovation?
A. Radical
B. Speculative
C. Reverse
D. Incremental - correct answer ✔A
Non-price competition such as today's rivalry between Coca-Cola and Pepsi refers to:
A. When one firm cuts prices to gain market share, the competition will do the same.
B. When a firm is driving costs down in order to gain competitive advantages through lower prices.
C. When a firm has no pricing power that leads to a competitive disadvantage.
D. When a firm is offering unique products and services as opposed to competing on price - correct
answer ✔D
. ____________ is created when a customer is willing to pay more for a good or service than it costs the
firm to produce it.
A. Economic value
B. Product value
C. Consumer value
D. Economic advantage - correct answer ✔A
A low-cost firm can still gain a competitive advantage even without differentiation parity as long as:
A. Its differentiation appeal is in parity with the competition.
B. Its costs are higher than the competition.
C. Its economic value creation exceeds that of the competition.
D. Its economic value creation is the same as the competition. - correct answer ✔C
