Question 1

Which of the following is true with regard to the same for less value proposition?
A) Discount stores and "category killers" rarely use the same for less value proposition.
B) The same for less value proposition is mostly offered by marketers who sell higher quality upscale products or services.
C) The same for less value proposition cannot generate profits.
D) Offering the same for less can be a powerful value proposition because everyone likes a good deal.
E) The same for less positioning involves meeting consumers' lower performance or quality requirements at a much lower price.

Accepted Answer

Offering the same for less can be a powerful value proposition because everyone likes a good deal. This is the main advantage of the same for less value proposition as it appeals to consumers who want to get more for their money. Option A is incorrect as discount stores often use the same for less value proposition. Option B is incorrect as the same for less value proposition is used by marketers selling a variety of products and services, not just higher quality upscale ones. Option C is incorrect as the same for less positioning can generate profits if the company can reduce costs and maintain quality. Option E is incorrect as the same for less positioning does not necessarily involve meeting lower performance or quality requirements, but rather offering the same or similar level of quality for a lower price.

Question 2

Symbols such as the McDonald's golden arches, the colorful Google logo, the Nike swoosh, or Apple's "bite mark" logo provide strong company or brand recognition and are indicative of ________ differentiation.
A) people
B) image
C) channel
D) services
E) product

Accepted Answer

The answer of Symbols such as the McDonald's golden arches,...

Question 3

Ferrari sports cars claim superior quality, performance, and style. Ferrari provides "perfection" at a premium price to keep its brand image intact. Which type of value proposition does Ferrari most likely position its products with?
A) more for the same
B) more for more
C) less for much less
D) the same for less
E) more for less

Accepted Answer

Ferrari's value proposition is "more for more," meaning they offer superior quality, performance, and style at a premium price, positioning their products as the best and worth the extra cost. They focus on providing a premium experience to their customers, which justifies the high price point.

Question 4

"To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) ________.
A) positioning statement
B) statement of purpose
C) order-routine specification
D) vision statement
E) product specification

Accepted Answer

This statement is a clear and concise description of Evernote's positioning in the market - as a tool for busy multitaskers who need help remembering things.

Question 5

Apex describes its clothing line as, "Elegance and attitude, now as one. For the daily office-goer, who takes pride in what he or she wears everyday, Apex makes sure you get noticed." This exemplifies a ________.
A) statement of purpose
B) vision statement
C) positioning statement
D) general need description
E) product specification

Accepted Answer

The statement clearly defines how Apex wants to position its clothing line in the market and target a specific segment of customers. The statement is not a statement of purpose, vision statement, general need description, or a product specification, as it does not address the company's goals or mission, future aspirations, specific product features, or overall customer needs.

Question 6

Chronos Inc. designs and markets different brands of cycling watches. Each brand has a single unique feature: the Chronos Cosmos has a heart rate monitor, the Chronos Acumen is designed for older cyclists who prefer a large display, and the Chronos Aegis has a GPS function. Which of the following is evident here?
A) channel differentiation
B) service differentiation
C) product differentiation
D) people differentiation
E) image differentiation

Accepted Answer

The different brands of cycling watches have unique features, which means that there is product differentiation.

Question 7

Which of the following states the product's membership in a category and then shows its point of difference from other members of the category?
A) a mission statement
B) a vision statement
C) a general need description
D) a positioning statement
E) an order-routine specification

Accepted Answer

A positioning statement states the product's membership in a category and then shows its point of difference from other members of the category, which is important for positioning the product in the minds of the target market. A mission statement articulates the company's overall purpose, a vision statement outlines its long-term aspirations, a general need description defines the overall market need or problem, and an order-routine specification specifies the delivery details for the product.

Question 8

The Jay Group hires better employees than its competition by conducting effective searches and multi-tiered interviews. The company also provides high quality training to its employees, an aspect often neglected by competitors. The Jay Group is most likely to gain a strong competitive advantage through which type of differentiation?
A) image differentiation
B) people differentiation
C) services differentiation
D) product differentiation
E) channel differentiation

Accepted Answer

The Jay Group's competitive advantage is based on the quality of its employees and training, which falls under the category of people differentiation.

Question 9

Harvey's Bookstore is a popular online bookstore that has differentiated itself through smooth-functioning delivery networks. This is an example of ________ differentiation.
A) product
B) image
C) price
D) channel
E) people

Accepted Answer

Harvey's Bookstore has differentiated itself by focusing on its delivery network, indicating that it has created a channel differentiation.

Question 10

A product position is the way a product is defined by consumers on important attributes.

Accepted Answer

A product position is the perception of consumers about a product based on its important attributes like quality, price, features, and benefits.

Question 11

Pierre's Mart, a grocery store in New Orleans, Louisiana, offers less merchandise selection and fairly low levels of service. Despite the lackluster service and limited selection of merchandise, customers still flock to Pierre's because it charges rock-bottom prices. Pierre's Mart most likely uses the ________ positioning.
A) more for the same
B) more for less
C) same for less
D) less for much less
E) more for more

Accepted Answer

The answer of Pierre's Mart, a grocery store in New...

Question 12

Even when competing offers look the same, buyers may perceive a difference based on ________ differentiation.
A) image
B) people
C) price
D) channel
E) services

Accepted Answer

Image differentiation refers to the perceived differences in brand personality, reputation, and overall presentation. Even if competing offers have similar prices, features, and services, buyers may prefer one brand over the other due to differences in their perceived image. This can include factors such as perceived quality, reliability, status, or cultural associations.

Question 13

The full mix of benefits on which a brand is differentiated and positioned is known as the brand's ________.
A) value proposition
B) service life
C) value stream
D) supply chain
E) demand chain

Accepted Answer

A brand's value proposition refers to the full mix of benefits that sets it apart from competitors and positions it in the minds of consumers. It includes both functional benefits (such as quality, performance, and features) and emotional benefits (such as brand identity, image, and reputation). The other options are not directly related to this concept.

Question 14

When it first opened stores across the United States, Bateman's, an office supply chain store, had the best product selection, the best service, and the lowest prices compared to other office supply chain stores. As a result, Bateman's captured a significant chunk of the market in the short run. Which of the following positioning strategies did Bateman's most likely use?
A) more for the same
B) more for less
C) same for less
D) less for much less
E) more for more

Accepted Answer

Bateman's had the best product selection and service, which is the "more" aspect of the more for less positioning strategy. Additionally, they had the lowest prices, which is the "less" aspect of the positioning strategy. Therefore, Bateman's most likely used the more for less positioning strategy.

Question 15

________ positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs.
A) More for the same
B) More for less
C) Same for less
D) Less for much less
E) More for more

Accepted Answer

The given situation describes the more for more positioning strategy, where a company offers a premium product/service and charges a premium price to cover its costs. This strategy is used to target the high-end market segment, which is willing to pay a premium for a premium product.

Question 16

Stores such as Walmart, Best Buy, PetSmart, David's Bridal, and DSW Shoes use ________ positioning.
A) more for the same
B) more for less
C) same for less
D) less for much less
E) more for more

Accepted Answer

The stores mentioned use the "same for less" positioning, which means they offer similar or comparable products to their competitors but at a lower price. This attracts budget-conscious consumers who are looking for good value for their money.

Question 17

While Jenkins Stationeries was selling branded stationery at premium prices, Pembroke Stationeries, a store across the street, was selling the same branded stationery at discount prices. Which of the following value propositions best describes Pembroke's product positioning?
A) more for less
B) more for the same
C) same for less
D) less for much less
E) more for more

Accepted Answer

Pembroke Stationeries' product positioning is offering the same branded stationery as Jenkins Stationeries but at a lower price, hence the value proposition of "same for less".

Question 18

Kinger Auto specializes in selling low-quality used vehicles that are priced a good deal lower than other used cars. Which of the following value propositions is evident here?
A) more for the same
B) more for less
C) same for less
D) less for much less
E) more for more

Accepted Answer

The value proposition evident here is "less for much less" as Kinger Auto specializes in selling low-quality used vehicles that are priced a good deal lower than other used cars, indicating that customers are getting a lower price for a lower quality product.

Question 19

The winning value proposition would be to offer ________.
A) more for the same
B) more for less
C) more for more
D) same for less
E) same for more

Accepted Answer

Offering more value for less than the competitors is the most effective winning value proposition. It resonates with customers who seek the best deals and is a strong differentiator in a crowded market. Option A (more for the same) and Option C (more for more) can work in certain scenarios, but they don't provide the same level of instant appeal that Option B does. Option D (same for less) can also be a compelling offer, but it's not as strong as B because it doesn't offer any extra value. Option E (same for more) is unlikely to be successful because customers will always choose to pay less for the same level of quality.

Question 20

________ positioning involves meeting consumers' lower performance or quality requirements at a much lower price.
A) More for less
B) Less for much less
C) Same for less
D) More for more
E) More for the same

Accepted Answer

The positioning strategy mentioned in the question is "Less for much less" which involves providing lower performance or quality products at a much lower price. Option A ("More for less") and Option E ("More for the same") are opposite positioning strategies where a company provides more value for the same or lesser price. Option D ("More for more") is a premium pricing strategy where a company provides higher quality or performance products at a higher price. Option C ("Same for less") is a value pricing strategy where a company provides the same quality or performance products at a lower price.

Quiz 7: Customer-Driven Marketing Strategy: Creating Value for Target Customers

Which of the following is true with regard to the same for less value proposition?

Symbols such as the McDonald's golden arches, the colorful Google logo, the Nike swoosh, or Apple's "bite mark" logo provide strong company or brand recognition and are indicative of ________ differentiation.

Ferrari sports cars claim superior quality, performance, and style. Ferrari provides "perfection" at a premium price to keep its brand image intact. Which type of value proposition does Ferrari most likely position its products with?

"To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) ________.

Apex describes its clothing line as, "Elegance and attitude, now as one. For the daily office-goer, who takes pride in what he or she wears everyday, Apex makes sure you get noticed." This exemplifies a ________.

Which of the following states the product's membership in a category and then shows its point of difference from other members of the category?

Harvey's Bookstore is a popular online bookstore that has differentiated itself through smooth-functioning delivery networks. This is an example of ________ differentiation.

A product position is the way a product is defined by consumers on important attributes.

Even when competing offers look the same, buyers may perceive a difference based on ________ differentiation.

The full mix of benefits on which a brand is differentiated and positioned is known as the brand's ________.

________ positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs.

Stores such as Walmart, Best Buy, PetSmart, David's Bridal, and DSW Shoes use ________ positioning.

While Jenkins Stationeries was selling branded stationery at premium prices, Pembroke Stationeries, a store across the street, was selling the same branded stationery at discount prices. Which of the following value propositions best describes Pembroke's product positioning?

Kinger Auto specializes in selling low-quality used vehicles that are priced a good deal lower than other used cars. Which of the following value propositions is evident here?

The winning value proposition would be to offer ________.

________ positioning involves meeting consumers' lower performance or quality requirements at a much lower price.