Strategic MGMT - Chapter 4 EXAM QUESTIONS WITH CORRECT MARKIN
SCHEME | VERIFIED
Study online at https://quizlet.com/_i5cd00
1. Religious beliefs are an example of customer segmentation by ______ factors.
a. demographic
b. socioeconomic
c. psychological
d. geographic: C
2. A flexible manufacturing system is
a. based on the use of temporary and part-time employees as well as outsourc-
ing.
b. a system that identifies "the one best way" to produce each product in the
company's line.
c. based on a 360-degree view of the company's relationships with customers.
d. a computer-controlled process that is used to produce a variety of products
in moderate, flexible quantities with minimal human intervention.: D
3. Walmart went against business-level strategy and made changes to attract
upscale customers. These changes had which of the following results?
a. attracted significant numbers of new customers.
b. Family Dollar, Dollar Tree, and Dollar General all experienced losses in sales
as many of their customers went to Walmart.
c. It strengthened Walmart's position against rivals such as Dollar Stores and
Amazon.
d. It made Walmart vulnerable to Dollar Store and Amazon.: D
4. An interior decorator has moved his business from Los Angeles to St. Paul,
Minnesota, because his spouse's company transferred her to St. Paul. The
decorator is distressed because the customers in his target market have, in his
words, "banal and bourgeois taste." What is the decorator's problem?
a. The decorator does not understand that customer needs are neither right
nor wrong, good nor bad.
b. The decorator is highly affiliated with the new target market and under-
stands how he can create value for it.
c. The decorator should choose a strategy of cost leadership in this environ-
ment.
, Strategic MGMT - Chapter 4 EXAM QUESTIONS WITH CORRECT MARKIN
SCHEME | VERIFIED
Study online at https://quizlet.com/_i5cd00
d. The decorator has no core competencies that will transfer to his new geo-
graphic market.: A
5. Mercedes mass produces luxury vehicles at a premium price. It uses a(n)
______ strategy.
a. focused cost leadership
b. integrated cost leadership/differentiation
c. differentiation
d. focused differentiation: C
6. Before the firm decides what products to offer and what benefits and features
they will have, the firm must decide all the following questions EXCEPT
a. what core competencies are needed to satisfy customer needs.
b. what needs the firm should satisfy.
c. when the customer's needs should be satisfied.
d. who the firm should serve.: C
7. The differentiation strategy can be effective in controlling the power of rivalry
with existing competitors in an industry because
a. the differentiation strategy benefits from rivalry because it forces the firm to
innovate.
b. customers will seek out the lowest-cost product.
c. customers of nondifferentiated products are sensitive to price increases.
d. customers are loyal to brands that are differentiated in meaningful ways.: D
8. A cost leadership strategy targets the industry's ____ customers.
a. most typical
b. poorest
c. least educated
d. most frugal: A
9. The integration of a cost leadership and a differentiation strategy
a. allows the firm to avoid being "stuck in the middle."
b. forces a firm to adapt more slowly to changes in its environment.
c. requires such a large customer base that it is most practical for firms in the
global marketplace.
SCHEME | VERIFIED
Study online at https://quizlet.com/_i5cd00
1. Religious beliefs are an example of customer segmentation by ______ factors.
a. demographic
b. socioeconomic
c. psychological
d. geographic: C
2. A flexible manufacturing system is
a. based on the use of temporary and part-time employees as well as outsourc-
ing.
b. a system that identifies "the one best way" to produce each product in the
company's line.
c. based on a 360-degree view of the company's relationships with customers.
d. a computer-controlled process that is used to produce a variety of products
in moderate, flexible quantities with minimal human intervention.: D
3. Walmart went against business-level strategy and made changes to attract
upscale customers. These changes had which of the following results?
a. attracted significant numbers of new customers.
b. Family Dollar, Dollar Tree, and Dollar General all experienced losses in sales
as many of their customers went to Walmart.
c. It strengthened Walmart's position against rivals such as Dollar Stores and
Amazon.
d. It made Walmart vulnerable to Dollar Store and Amazon.: D
4. An interior decorator has moved his business from Los Angeles to St. Paul,
Minnesota, because his spouse's company transferred her to St. Paul. The
decorator is distressed because the customers in his target market have, in his
words, "banal and bourgeois taste." What is the decorator's problem?
a. The decorator does not understand that customer needs are neither right
nor wrong, good nor bad.
b. The decorator is highly affiliated with the new target market and under-
stands how he can create value for it.
c. The decorator should choose a strategy of cost leadership in this environ-
ment.
, Strategic MGMT - Chapter 4 EXAM QUESTIONS WITH CORRECT MARKIN
SCHEME | VERIFIED
Study online at https://quizlet.com/_i5cd00
d. The decorator has no core competencies that will transfer to his new geo-
graphic market.: A
5. Mercedes mass produces luxury vehicles at a premium price. It uses a(n)
______ strategy.
a. focused cost leadership
b. integrated cost leadership/differentiation
c. differentiation
d. focused differentiation: C
6. Before the firm decides what products to offer and what benefits and features
they will have, the firm must decide all the following questions EXCEPT
a. what core competencies are needed to satisfy customer needs.
b. what needs the firm should satisfy.
c. when the customer's needs should be satisfied.
d. who the firm should serve.: C
7. The differentiation strategy can be effective in controlling the power of rivalry
with existing competitors in an industry because
a. the differentiation strategy benefits from rivalry because it forces the firm to
innovate.
b. customers will seek out the lowest-cost product.
c. customers of nondifferentiated products are sensitive to price increases.
d. customers are loyal to brands that are differentiated in meaningful ways.: D
8. A cost leadership strategy targets the industry's ____ customers.
a. most typical
b. poorest
c. least educated
d. most frugal: A
9. The integration of a cost leadership and a differentiation strategy
a. allows the firm to avoid being "stuck in the middle."
b. forces a firm to adapt more slowly to changes in its environment.
c. requires such a large customer base that it is most practical for firms in the
global marketplace.
