ECPI EXAM 2 REVIEW CHAPTER 4
COMPREHENSIVE EXAM SCRIPT 2026
QUESTIONS AND ANSWERS GUARANTEED TO
PASS
◉ What does the REACH dimension of customer relationships
involve? Answer: The firm's access and connection to customers
◉ What must managers consider when devising a business level
strategy? Answer: Customer needs, Customer groups, Core
Competencies
◉ What is the process of dividing customers into groups based on
their needs called? Answer: Market Segmentation
◉ What do consumption patterns in consumer markets consist of?
Answer: Purchase quantity, Frequency of purchase, Timing of
purchase
◉ What are the 'what' portions of business strategies related to?
Answer: Customer needs
, ◉ How do firms maintain their advantage over competition?
Answer: Core competencies, innovating, building relationships,
controlling costs, create barriers
◉ What describes how a firm intends to compete against rivals on a
day-to-day basis? Answer: Business level strategy
◉ What is the business model where a firm licenses its trademark
and processes to others? Answer: Franchising
◉ What business model does Netflix use? Answer: Subscription-
based
◉ What is an Internet-based location for exchanges of information,
goods, or services? Answer: Digital platform
◉ How many business level strategies do companies choose from?
Answer: 5 business levels (Cost leadership, differentiation, focused
cost leadership, focused differentiation, integrated)
◉ What strategy does a firm use to serve a target customer group
larger than a narrow market segment? Answer: Integrated cost
leadership/differentiation strategy
COMPREHENSIVE EXAM SCRIPT 2026
QUESTIONS AND ANSWERS GUARANTEED TO
PASS
◉ What does the REACH dimension of customer relationships
involve? Answer: The firm's access and connection to customers
◉ What must managers consider when devising a business level
strategy? Answer: Customer needs, Customer groups, Core
Competencies
◉ What is the process of dividing customers into groups based on
their needs called? Answer: Market Segmentation
◉ What do consumption patterns in consumer markets consist of?
Answer: Purchase quantity, Frequency of purchase, Timing of
purchase
◉ What are the 'what' portions of business strategies related to?
Answer: Customer needs
, ◉ How do firms maintain their advantage over competition?
Answer: Core competencies, innovating, building relationships,
controlling costs, create barriers
◉ What describes how a firm intends to compete against rivals on a
day-to-day basis? Answer: Business level strategy
◉ What is the business model where a firm licenses its trademark
and processes to others? Answer: Franchising
◉ What business model does Netflix use? Answer: Subscription-
based
◉ What is an Internet-based location for exchanges of information,
goods, or services? Answer: Digital platform
◉ How many business level strategies do companies choose from?
Answer: 5 business levels (Cost leadership, differentiation, focused
cost leadership, focused differentiation, integrated)
◉ What strategy does a firm use to serve a target customer group
larger than a narrow market segment? Answer: Integrated cost
leadership/differentiation strategy
