MAN4720 Study Guide
Comprehensive Resource To Help You Ace 2026-2027 Exams
Includes Frequently Tested Questions With ELABORATED
100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!! Current Update!!
1. What is the primary purpose of a business-level strategy?
a. To maximize shareholder dividends
b. To create differences between the firm's position and those of its competitors
c. To eliminate all competitors from the market
d. To reduce operating costs only
Correct Answer: b. To create differences between the firm's position and those of its
competitors
2. Which dimension of customer relationships revolves around the firm's access and
connection to customers?
a. Richness
b. Reach
c. Responsiveness
d. Reliability
Correct Answer: b. Reach
3. When managers are devising a business-level strategy, which of the following must they
consider to be successful?
a. WHO will be served, WHAT needs those target customers have that will be satisfied,
and HOW those needs will be satisfied
b. WHO owns the company, WHEN to advertise, and WHERE to manufacture
c. WHAT competitors charge, WHERE suppliers are located, and HOW to reduce taxes
d. WHO finances the company, WHAT regulations apply, and WHEN to expand
internationally
Correct Answer: a. WHO will be served, WHAT needs those target customers have
that will be satisfied, and HOW those needs will be satisfied
,4. What is the process of dividing customers into groups based on their needs called?
a. Product positioning
b. Market segmentation
c. Market penetration
d. Consumer targeting
Correct Answer: b. Market segmentation
5. In consumer markets, consumption patterns are commonly classified as:
a. Frequent, occasional, and seasonal users
b. Heavy, moderate, and light users
c. Primary, secondary, and tertiary users
d. Active, inactive, and potential users
Correct Answer: b. Heavy, moderate, and light users
6. The "what" portion of a business-level strategy is normally related to:
a. The firm's organizational structure
b. A product's benefits and features
c. The firm's competitors
d. Government regulations
Correct Answer: b. A product's benefits and features
7. How do firms maintain their competitive advantage?
a. By lowering prices below competitors at all times
b. By continuously upgrading their capabilities to create customer value exceeding
competitors' offerings
c. By producing fewer products than competitors
d. By relying only on advertising campaigns
Correct Answer: b. By continuously upgrading their capabilities to create customer
value exceeding competitors' offerings
8. What does a firm develop to describe how it intends to compete against rivals on a day-
to-day basis in its chosen product market?
a. Corporate strategy
b. Business-level strategy
c. Financial strategy
, d. Marketing strategy
Correct Answer: b. Business-level strategy
9. Which business model involves licensing a firm's trademark and processes to other
companies in exchange for fees and royalty payments?
a. Subscription business model
b. Franchise business model
c. Brokerage business model
d. Marketplace business model
Correct Answer: b. Franchise business model
10. Which business model does Netflix primarily use?
a. Franchise business model
b. Subscription business model
c. Advertising business model
d. Licensing business model
Correct Answer: b. Subscription business model
11. Which of the following is an Internet-based location where information, goods, or
services are exchanged between producers, consumers, and other members of the
platform community?
a. E-commerce website
b. Digital platform
c. Data warehouse
d. Search engine
Correct Answer: b. Digital platform
12. How many business-level strategies can companies choose from to establish their
desired strategic position against competitors?
a. Three
b. Four
c. Five
d. Six
Correct Answer: c. Five
Comprehensive Resource To Help You Ace 2026-2027 Exams
Includes Frequently Tested Questions With ELABORATED
100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!! Current Update!!
1. What is the primary purpose of a business-level strategy?
a. To maximize shareholder dividends
b. To create differences between the firm's position and those of its competitors
c. To eliminate all competitors from the market
d. To reduce operating costs only
Correct Answer: b. To create differences between the firm's position and those of its
competitors
2. Which dimension of customer relationships revolves around the firm's access and
connection to customers?
a. Richness
b. Reach
c. Responsiveness
d. Reliability
Correct Answer: b. Reach
3. When managers are devising a business-level strategy, which of the following must they
consider to be successful?
a. WHO will be served, WHAT needs those target customers have that will be satisfied,
and HOW those needs will be satisfied
b. WHO owns the company, WHEN to advertise, and WHERE to manufacture
c. WHAT competitors charge, WHERE suppliers are located, and HOW to reduce taxes
d. WHO finances the company, WHAT regulations apply, and WHEN to expand
internationally
Correct Answer: a. WHO will be served, WHAT needs those target customers have
that will be satisfied, and HOW those needs will be satisfied
,4. What is the process of dividing customers into groups based on their needs called?
a. Product positioning
b. Market segmentation
c. Market penetration
d. Consumer targeting
Correct Answer: b. Market segmentation
5. In consumer markets, consumption patterns are commonly classified as:
a. Frequent, occasional, and seasonal users
b. Heavy, moderate, and light users
c. Primary, secondary, and tertiary users
d. Active, inactive, and potential users
Correct Answer: b. Heavy, moderate, and light users
6. The "what" portion of a business-level strategy is normally related to:
a. The firm's organizational structure
b. A product's benefits and features
c. The firm's competitors
d. Government regulations
Correct Answer: b. A product's benefits and features
7. How do firms maintain their competitive advantage?
a. By lowering prices below competitors at all times
b. By continuously upgrading their capabilities to create customer value exceeding
competitors' offerings
c. By producing fewer products than competitors
d. By relying only on advertising campaigns
Correct Answer: b. By continuously upgrading their capabilities to create customer
value exceeding competitors' offerings
8. What does a firm develop to describe how it intends to compete against rivals on a day-
to-day basis in its chosen product market?
a. Corporate strategy
b. Business-level strategy
c. Financial strategy
, d. Marketing strategy
Correct Answer: b. Business-level strategy
9. Which business model involves licensing a firm's trademark and processes to other
companies in exchange for fees and royalty payments?
a. Subscription business model
b. Franchise business model
c. Brokerage business model
d. Marketplace business model
Correct Answer: b. Franchise business model
10. Which business model does Netflix primarily use?
a. Franchise business model
b. Subscription business model
c. Advertising business model
d. Licensing business model
Correct Answer: b. Subscription business model
11. Which of the following is an Internet-based location where information, goods, or
services are exchanged between producers, consumers, and other members of the
platform community?
a. E-commerce website
b. Digital platform
c. Data warehouse
d. Search engine
Correct Answer: b. Digital platform
12. How many business-level strategies can companies choose from to establish their
desired strategic position against competitors?
a. Three
b. Four
c. Five
d. Six
Correct Answer: c. Five
