BADM Ch 5 EXAM QUESTIONS AND
ANSWERS 100% PASS
Competitive advantage with product differentiation occurs when a company
a) creates competitive advantage by grouping customers on the basis of important
differences in
their needs.
b) helps firms keep costs to a minimum.
c) creates, makes, and sells a product in a way that better satisfies customer needs
than its rivals.
,d) is focused on corporate-level strategy.
e) allows its managers to ignore costs. - CORRECT ANSWER-c) creates, makes,
and sells a product in a way that better satisfies customer needs than its rivals.
Which of the following markets offers the best opportunity for product
differentiation and market
segmentation?
a) Bulk chemicals
b) Wheat
c) Cement
d) Home theater
e) Fax machines - CORRECT ANSWER-d) Home theater
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
, Which of the following is not a generic competitive strategy?
a) Cost leadership
b) Differentiation
c) Focused cost leadership
d) Focused differentiation
e) Innovation - CORRECT ANSWER-e) Innovation
Which of the following industries offers the least opportunity for product
differentiation and market segmentation?
a) Oil and gas
b) Clothing
ANSWERS 100% PASS
Competitive advantage with product differentiation occurs when a company
a) creates competitive advantage by grouping customers on the basis of important
differences in
their needs.
b) helps firms keep costs to a minimum.
c) creates, makes, and sells a product in a way that better satisfies customer needs
than its rivals.
,d) is focused on corporate-level strategy.
e) allows its managers to ignore costs. - CORRECT ANSWER-c) creates, makes,
and sells a product in a way that better satisfies customer needs than its rivals.
Which of the following markets offers the best opportunity for product
differentiation and market
segmentation?
a) Bulk chemicals
b) Wheat
c) Cement
d) Home theater
e) Fax machines - CORRECT ANSWER-d) Home theater
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
, Which of the following is not a generic competitive strategy?
a) Cost leadership
b) Differentiation
c) Focused cost leadership
d) Focused differentiation
e) Innovation - CORRECT ANSWER-e) Innovation
Which of the following industries offers the least opportunity for product
differentiation and market segmentation?
a) Oil and gas
b) Clothing
