Deck 18: Note : Generic Strategies - the Value Map

Question 1

A firm that uses a premium strategy differentiates its products in terms of quality or brand image and ________.

A) offers competitive pricing
B) has an average 18% ROI
C) declines in market share
D) charges high prices

Answer 1

D

Question 2

A questionnaire asks respondents "to indicate how much weight you put on quality and how much weight you put on price by dividing 100 points between quality and price." This questionnaire is most likely using the ________ method.

A) constant sum scale
B) conjoint analysis
C) rating scale
D) rank order

Answer 2

A

Question 3

In marketing strategy,________ refers to the ratio of customer benefits divided by the price paid for those benefits.

A) market share
B) demand
C) quantity
D) value

Answer 3

D

Question 4

Which generic strategy would most likely lead to a strong increase in market share and an average 29% ROI?

A) differentiation
B) superior customer value
C) cost leadership
D) inferior customer value

Question 5

Which term refers to companies within an industry that pursue similar competitive strategies and are similar in size,product offerings,and target customers?

A) niche market
B) market share
C) strategic group
D) integrated rival

Question 6

The importance-performance-analysis method is most useful during the strategy formulation process when ________.

A) defining the market
B) assessing competitors
C) defining an action plan
D) estimating price sensitivity

Question 7

What is the value frontier? How do marketers benefit from understanding the value frontier?

Question 8

A firm that uses the economy strategy is more likely to lower its profitability because of ________.

A) price wars
B) brand image
C) value mapping
D) poor distribution methods

Question 9

The generic strategy of superior customer value is difficult to implement because it requires balancing differentiation with competitive pricing.

Question 10

Which method is the best for assessing product performance?

A) rank order
B) rating scale
C) conjoint analysis
D) constant sum scales

Question 11

A product that falls below the fair value zone of a value map is perceived to deliver benefits that are ________ the product's cost.

A) greater than
B) less than
C) equal to
D) unrelated to

Question 12

Which type of research generates non-numeric results that provide detailed verbal or visual information about consumer buying criteria?

A) causal research
B) descriptive research
C) quantitative research
D) qualitative research

Question 13

A product that is above or to the left of the fair value frontier is an excellent value for customers.

Question 14

Products positioned in the economy quadrant of the value map typically experience a strong decline of market share unless the firm has a monopoly.