WPC 480 CHAPTER 5 EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026
During its tenure as "America's Favorite Store," J.C. Penney was focused on offering high-quality
products at low prices. It was pursuing which business-level strategy? - Answers Integrated cost
leadership/differentiation strategy
Before the most recent recession, J.C. Penney, as a mid-tiered retailer that sold clothing, home goods,
and other product lines, was in competition with: - Answers Dillard's.
Before the turn of the century, J.C. Penney's operations continued successfully unchanged in the
apparel and credit card businesses. J.C. Penney was operating in a: - Answers standard-cycle market.
Since the recent recession, department stores are starting to compete with discount retailers.
Previously, J.C. Penney's competitors were recognized as other mid-tiered retailers. Now, J.C. Penney
must include discount retailers when studying its: - Answers competitive rivalry.
Because of multimarket competition and the emergence of more mid-tiered retailers similar to J.C.
Penney, profit margins declined, which provided the _____ for J.C. Penney to change its strategy to
initiate competitive behavior against its competitors. - Answers motivation
To compete in the new competitive environment after the recession, J.C. Penney's new strategy
utilized sales data from previous years to determine the company's everyday low prices. This was
indicative of the company's focus on which strategy? - Answers Cost leadership
As a result of the lowered profits and the rise of more competitors, J.C. Penney appointed Ron
Johnson as CEO, who sought to: - Answers establish a retailing revolution
The emergence of online retailing has changed the way J.C. Penney and its rivals compete. J.C. Penney
has responded by: - Answers building its online presence.
J.C. Penney realized its need for more competitive everyday price points based on what data? -
Answers The price customers paid for products over the last year
New J.C. Penney strategies implemented in order to maintain and gain market share are known as: -
Answers competitive behavior.
To understand the competitive environment of the small car market, including market commonalities
and resource similarities, General Motors should perform a: - Answers competitor analysis.
Based on the information from the video, nearly 50% of U.S. consumers prefer sport utility vehicles.
Between U.S.-based car companies, this demonstrates a: - Answers market commonality
Car companies competing in various market segments, including SUVs, trucks, and compact cars, are
referred to as: - Answers multimarket competition.
General Motors and its competitors are constantly "thinking of tomorrow" in terms of their products.
This means that car companies are competing in a: - Answers fast-cycle market.
In order to stay ahead of the competition, car companies must study ______________ to predict the
competitive actions and responses their competitors are likely to take. - Answers competitive rivalry
If General Motors releases a new pick-up truck, which competitor should the firm be aware of for
competitive responses? - Answers Ford
competitors - Answers are firms operating in the same
market, offering similar products, and targeting
similar customers
Competitive behavior - Answers is the set of competitive
actions and responses a firm takes to build or
defend its competitive advantages and to
improve its market position.
Competitive rivalry - Answers is the ongoing set of
competitive actions and competitive responses
that occur among firms as they maneuver for an
advantageous market position.
tactical action - Answers Response is a market-based move that is taken to fine-tune a strategy; it
involves fewer resources and is relatively easy to implement and reverse.
market commonality - Answers is concerned with the
number of markets with which the firm and a
competitor are jointly involved and the degree of
importance of the individual markets to each.
multimarket competition - Answers occurs when firms
compete against each other in several product
During its tenure as "America's Favorite Store," J.C. Penney was focused on offering high-quality
products at low prices. It was pursuing which business-level strategy? - Answers Integrated cost
leadership/differentiation strategy
Before the most recent recession, J.C. Penney, as a mid-tiered retailer that sold clothing, home goods,
and other product lines, was in competition with: - Answers Dillard's.
Before the turn of the century, J.C. Penney's operations continued successfully unchanged in the
apparel and credit card businesses. J.C. Penney was operating in a: - Answers standard-cycle market.
Since the recent recession, department stores are starting to compete with discount retailers.
Previously, J.C. Penney's competitors were recognized as other mid-tiered retailers. Now, J.C. Penney
must include discount retailers when studying its: - Answers competitive rivalry.
Because of multimarket competition and the emergence of more mid-tiered retailers similar to J.C.
Penney, profit margins declined, which provided the _____ for J.C. Penney to change its strategy to
initiate competitive behavior against its competitors. - Answers motivation
To compete in the new competitive environment after the recession, J.C. Penney's new strategy
utilized sales data from previous years to determine the company's everyday low prices. This was
indicative of the company's focus on which strategy? - Answers Cost leadership
As a result of the lowered profits and the rise of more competitors, J.C. Penney appointed Ron
Johnson as CEO, who sought to: - Answers establish a retailing revolution
The emergence of online retailing has changed the way J.C. Penney and its rivals compete. J.C. Penney
has responded by: - Answers building its online presence.
J.C. Penney realized its need for more competitive everyday price points based on what data? -
Answers The price customers paid for products over the last year
New J.C. Penney strategies implemented in order to maintain and gain market share are known as: -
Answers competitive behavior.
To understand the competitive environment of the small car market, including market commonalities
and resource similarities, General Motors should perform a: - Answers competitor analysis.
Based on the information from the video, nearly 50% of U.S. consumers prefer sport utility vehicles.
Between U.S.-based car companies, this demonstrates a: - Answers market commonality
Car companies competing in various market segments, including SUVs, trucks, and compact cars, are
referred to as: - Answers multimarket competition.
General Motors and its competitors are constantly "thinking of tomorrow" in terms of their products.
This means that car companies are competing in a: - Answers fast-cycle market.
In order to stay ahead of the competition, car companies must study ______________ to predict the
competitive actions and responses their competitors are likely to take. - Answers competitive rivalry
If General Motors releases a new pick-up truck, which competitor should the firm be aware of for
competitive responses? - Answers Ford
competitors - Answers are firms operating in the same
market, offering similar products, and targeting
similar customers
Competitive behavior - Answers is the set of competitive
actions and responses a firm takes to build or
defend its competitive advantages and to
improve its market position.
Competitive rivalry - Answers is the ongoing set of
competitive actions and competitive responses
that occur among firms as they maneuver for an
advantageous market position.
tactical action - Answers Response is a market-based move that is taken to fine-tune a strategy; it
involves fewer resources and is relatively easy to implement and reverse.
market commonality - Answers is concerned with the
number of markets with which the firm and a
competitor are jointly involved and the degree of
importance of the individual markets to each.
multimarket competition - Answers occurs when firms
compete against each other in several product
