Question 1

As markets develop demand is initially slow, accelerates as the technology becomes better understood and utilized and then declines as demand is increasingly limited to replacement demand.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following represents the difference in strategies for the innovators and early majority versus the mass market?

Accepted Answer

A)   Companies serving innovators and the early majority must engage in large-scale mass production to ensure that a high-quality product can be reliably produced at a low price point while serving the rapidly growing mass market typically is to pursue a focus model.
B)   Companies serving innovators and the early majority must pay more attention to increasing the performance of a product while mass market strategies focus on the product's ease of use and reliability.
C)   Companies serving innovators and the early majority requires mass-market distribution channels and mass-media advertising campaigns while the mass market is typically reached through specialized distribution channels, and products are often sold by word of mouth.
D)   Companies serving innovators and the early majority typically pursue a focus model while serving the rapidly growing mass market takes large-scale mass production to ensure that a high-quality product can be reliably produced at a low price point.
E)   Product development strategies required for success do not vary as a market develops over time.F) A) and B)
G) All of the above

Question 3

What are the causes and effects of excess capacity? How can companies seek to control these effects? Why must companies exercise caution when using capacity control strategies?

Accepted Answer

Excess capacity may be caused by a short...

Question 4

Development of a mass market is the stimulus for an industry to change from growth to embryonic.

Accepted Answer

A) True 
 B)False

Question 5

Drawbacks to which of the following industry rivalry management strategies include allowing companies with high cost structures to survive without implementing efficiency strategies despite the fact that this leaves them vulnerable in the long term?

Accepted Answer

A)   Price signaling
B)   Price leadership
C)   Non-price competition
D)   Market penetration
E)   Product developmentF) A) and E)
G) None of the above

Question 6

Which of the following is NOT a strategy used by mature industries to manage industry rivalry?

Accepted Answer

A)   Market development
B)   Non-price competition
C)   Strategic commitments
D)   Price signaling
E)   Market penetrationF) None of the above
G) A) and B)

Question 7

Which of the following individuals is most likely to fall under the category of laggards in the context of customer groups?

Accepted Answer

A)   Lauren, who is tech-savvy and tends to actively seek out new and innovative products in the market
B)   Suresh, who appreciates technology but tends to refrain from trying products that are extremely new
C)   Phillip, who is ignorant about the newest uses of technology and buys new products only when they become an absolute necessity
D)   Charlotte, who is aware of the value that technology offers; she tends to weigh costs and benefits of a product before making a buying decision
E)   Maria, who tends to be a little apprehensive about buying new technology but buys nevertheless when she observes that a lot of people are using the new technologyF) A) and D)
G) All of the above

Question 8

Hydralicious, a juice bar, has been looking to expand its business. The company has given a few entrepreneurs in different locations the license to operate under its name. The entrepreneurs have permission to use the company's reputation and the business model to run operations. The entrepreneurs will be charged a fee, but they will also get a percentage of the profits. Which of the following strategies is Hydralicious most likely to be using?

Accepted Answer

A)   Chaining
B)   Horizontal merger
C)   Vertical merger
D)   Franchising
E)   CentralizationF) B) and C)
G) D) and E)

Question 9

Armando, a technology enthusiast, is often willing to pay premium prices to always have the newest tech gadgets. Armando most likely belongs to which of the following group of customers?

Accepted Answer

A)   Laggard
B)   Early majority
C)   Early adopter
D)   Late majority
E)   InnovatorF) B) and C)
G) A) and C)

Question 10

The strategy used by cereal companies where they produce a wide array of different types of cereal and are quick to sell their own version of any product brought in by new entrants is an example of a product proliferation strategy.

Accepted Answer

A) True 
 B)False

Question 11

In his book Crossing the Chasm, Geoffrey Moore discusses some of the issues involved in marketing technologically new products as markets develop through different stages. What customer groups does Moore identify as critical to the movement into mass market, and what must companies do if they are to successfully cross the chasm?

Accepted Answer

The first group of customers to enter th...

Question 12

Relish Inc. created the first national chain of fast-food restaurants in a previously fragmented industry. This is called divestment.

Accepted Answer

A) True 
 B)False

Question 13

The franchisor typically owns and funds each of its franchisees.

Accepted Answer

A) True 
 B)False

Question 14

A limit price strategy involves charging a price that is lower than that required to maximize profits in the short run to signal to new entrants that the incumbent has a low-cost structure that the entrant likely cannot match.

Accepted Answer

A) True 
 B)False

Question 15

A technology upgrading strategy is utilized by incumbent companies in a mature industry to deter entry by investing in costly technology upgrades that potential entrants would have trouble matching.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements about growing industries is true?

Accepted Answer

A)   Innovators and early adopters have the same customer needs as the early majority.
B)   Innovators and early adopters are typically reached through specialized distribution channels.
C)   Reaching the early majority rarely requires advertising and is usually achieved through word of mouth.
D)   Companies serving innovators need to have large-scale mass production and very low prices.
E)   Companies competing in an embryonic market typically pay more attention to increasing the reliability of a product than to its performance.F) A) and D)
G) A) and E)

Question 17

Which of the following is a way that a fragmented industry can be consolidated?

Accepted Answer

A)   Using strategies to create meaningful scale economies.
B)   Creating a national brand where none previously existed.
C)   Lowering costs through the creation of scale economies by value innovations.
D)   Offering new ways to address customer's demands such as wider product selection, longer operating hours, and lower prices.
E)   All of these are ways that a fragmented industry can be consolidated.F) C) and D)
G) C) and E)

Question 18

Laggards are the customers who are the first ones to try and adopt a new technology.

Accepted Answer

A) True 
 B)False

Question 19

A divestment strategy's success is often dependent upon good timing.

Accepted Answer

A) True 
 B)False

Question 20

Music CDs and newspaper sales have been falling as users turn to the Internet for their music and news. Which of the following is NOT a strategy for companies in these declining industries?

Accepted Answer

A)  Leadership
B)  Chaining
C)  Niche
D)  Divestment
E)  HarvestF) B) and E)
G) All of the above

Exam 6: Business-Level Strategy and the Industry Environment

A limit price strategy involves charging a price that is lower than that required to maximize profits in the short run to signal to new entrants that the incumbent has a low-cost structure that the entrant likely cannot match.

Correct Answer
verified

Which of the following statements about growing industries is true?

Correct Answer
verified

Correct Answer
verified
The first group of customers to enter th...
View Answer

Development of a mass market is the stimulus for an industry to change from growth to embryonic.

Correct Answer
verified

Laggards are the customers who are the first ones to try and adopt a new technology.

Correct Answer
verified

As markets develop demand is initially slow, accelerates as the technology becomes better understood and utilized and then declines as demand is increasingly limited to replacement demand.

Correct Answer
verified

Drawbacks to which of the following industry rivalry management strategies include allowing companies with high cost structures to survive without implementing efficiency strategies despite the fact that this leaves them vulnerable in the long term?

Correct Answer
verified

A divestment strategy's success is often dependent upon good timing.

Correct Answer
verified

Which of the following is a way that a fragmented industry can be consolidated?

Correct Answer
verified

Which of the following is NOT a strategy used by mature industries to manage industry rivalry?

Correct Answer
verified

Relish Inc. created the first national chain of fast-food restaurants in a previously fragmented industry. This is called divestment.

Correct Answer
verified

Music CDs and newspaper sales have been falling as users turn to the Internet for their music and news. Which of the following is NOT a strategy for companies in these declining industries?

Correct Answer
verified

Which of the following represents the difference in strategies for the innovators and early majority versus the mass market?

Correct Answer
verified

A technology upgrading strategy is utilized by incumbent companies in a mature industry to deter entry by investing in costly technology upgrades that potential entrants would have trouble matching.

Correct Answer
verified

The strategy used by cereal companies where they produce a wide array of different types of cereal and are quick to sell their own version of any product brought in by new entrants is an example of a product proliferation strategy.

Correct Answer
verified

What are the causes and effects of excess capacity? How can companies seek to control these effects? Why must companies exercise caution when using capacity control strategies?

Correct Answer
verified
Excess capacity may be caused by a short...
View Answer

Armando, a technology enthusiast, is often willing to pay premium prices to always have the newest tech gadgets. Armando most likely belongs to which of the following group of customers?

Correct Answer
verified

Correct Answer
verified

The franchisor typically owns and funds each of its franchisees.

Correct Answer
verified

Which of the following individuals is most likely to fall under the category of laggards in the context of customer groups?

Correct Answer
verified

Exam 6: Business-Level Strategy and the Industry Environment

A limit price strategy involves charging a price that is lower than that required to maximize profits in the short run to signal to new entrants that the incumbent has a low-cost structure that the entrant likely cannot match.

Correct AnswerverifiedShow Answer

Which of the following statements about growing industries is true?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe first group of customers to enter th...View AnswerShow Answer

Development of a mass market is the stimulus for an industry to change from growth to embryonic.

Correct AnswerverifiedShow Answer

Laggards are the customers who are the first ones to try and adopt a new technology.

Correct AnswerverifiedShow Answer

As markets develop demand is initially slow, accelerates as the technology becomes better understood and utilized and then declines as demand is increasingly limited to replacement demand.

Correct AnswerverifiedShow Answer

Drawbacks to which of the following industry rivalry management strategies include allowing companies with high cost structures to survive without implementing efficiency strategies despite the fact that this leaves them vulnerable in the long term?

Correct AnswerverifiedShow Answer

A divestment strategy's success is often dependent upon good timing.

Correct AnswerverifiedShow Answer

Which of the following is a way that a fragmented industry can be consolidated?

Correct AnswerverifiedShow Answer

Which of the following is NOT a strategy used by mature industries to manage industry rivalry?

Correct AnswerverifiedShow Answer

Relish Inc. created the first national chain of fast-food restaurants in a previously fragmented industry. This is called divestment.

Correct AnswerverifiedShow Answer

Music CDs and newspaper sales have been falling as users turn to the Internet for their music and news. Which of the following is NOT a strategy for companies in these declining industries?

Correct AnswerverifiedShow Answer

Which of the following represents the difference in strategies for the innovators and early majority versus the mass market?

Correct AnswerverifiedShow Answer

A technology upgrading strategy is utilized by incumbent companies in a mature industry to deter entry by investing in costly technology upgrades that potential entrants would have trouble matching.

Correct AnswerverifiedShow Answer

The strategy used by cereal companies where they produce a wide array of different types of cereal and are quick to sell their own version of any product brought in by new entrants is an example of a product proliferation strategy.

Correct AnswerverifiedShow Answer

What are the causes and effects of excess capacity? How can companies seek to control these effects? Why must companies exercise caution when using capacity control strategies?

Correct AnswerverifiedExcess capacity may be caused by a short...View AnswerShow Answer

Armando, a technology enthusiast, is often willing to pay premium prices to always have the newest tech gadgets. Armando most likely belongs to which of the following group of customers?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The franchisor typically owns and funds each of its franchisees.

Correct AnswerverifiedShow Answer

Which of the following individuals is most likely to fall under the category of laggards in the context of customer groups?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The first group of customers to enter th...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Excess capacity may be caused by a short...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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