Question 1

Markets rarely appear on their own out of nowhere; most of the time they are taken from competitors.

Accepted Answer

Markets are competitive spaces where businesses vie for customers. New entrants typically gain market share by attracting customers from existing competitors, rather than creating an entirely new market.

Question 2

When new products or services are created to better meet customer needs, the competitive environment changes.

Accepted Answer

When new products or services are introduced that better meet customer needs, they can shift market dynamics by attracting customers away from existing offerings, thereby changing the competitive environment.

Question 3

The two broad forms of competition are macro industry competition and micro product class competition.

Accepted Answer

Macro industry competition refers to competition between different industries, while micro product class competition refers to competition between different products within the same industry.

Question 4

Some consider REVPAC to be a major measurement tool of the future.

Accepted Answer

REVPAC, or Revenue Per Available Customer, is increasingly considered a significant metric, especially in industries like hospitality and online services, where understanding revenue generated per customer can lead to more targeted and effective business strategies.

Question 5

Competition has become more oriented to value in relation to cost and service as knowledgeable buyers expect similar price and product and service features.

Accepted Answer

This statement is true because in today's market, consumers are more informed and have higher expectations regarding the value they receive for their money. They often compare prices, product features, and service quality before making a purchase, leading to competition that focuses more on providing better value in terms of cost and service.

Question 6

Firms that concentrate on the concept rather than the customer and the competition when designing their product or service have "conceptitis."

Accepted Answer

"Conceptitis" refers to the problem where firms focus too much on their product or service concept without adequately considering the needs and preferences of the customer or the dynamics of the competition.

Question 7

When the needs of the market are similar, the intensity of competition is much greater as many entries in the market are competing for the same customer.

Accepted Answer

When market needs are similar, companies offer similar products or services, leading to a higher intensity of competition as they vie for the same customer base.

Question 8

A firm's product/service concept development should precede analysis and choice of product/service competition.

Accepted Answer

In product development, analyzing and understanding the competition is crucial before developing a product/service concept to ensure differentiation and market fit.

Question 9

There are almost no changes in the competitive environment as an industry reaches the maturity stage of its life cycle.

Accepted Answer

As an industry reaches the maturity stage of its life cycle, competition often intensifies, leading to changes such as price competition, product differentiation, and market segmentation efforts to maintain or grow market share.

Question 10

Opportunity solutions, to be effective, are multi-faceted and complex.

Accepted Answer

The answer of Opportunity solutions, to be effective, are multi-faceted...

Question 11

Competitive intelligence is knowing the enemy and what they are doing as well as their intentions, strengths and weaknesses.

Accepted Answer

Competitive intelligence involves gathering and analyzing information about competitors, their activities, strategies, strengths, and weaknesses to support decision-making and strategic planning in a business context.

Question 12

Homogeneity of the market is one factor that can contribute to competitive intensity.

Accepted Answer

Homogeneity of the market means that products or services are similar, leading to increased competition as companies strive to differentiate themselves and capture market share.

Question 13

Services that can be easily duplicated offer only short-term advantage when you have aggressive competitors.

Accepted Answer

Easily duplicated services do not provide a sustainable competitive advantage because competitors can quickly imitate them, eroding any initial lead or uniqueness a company might have had.

Question 14

Michael Porter designed a framework of seven forces that shape competition within an industry.

Accepted Answer

Michael Porter designed a framework known as Porter's Five Forces, not seven, that shape competition within an industry.

Question 15

Market share is not useful in telling a firm how it is doing in relationship to the competition.

Accepted Answer

Market share is a key indicator of a firm's competitiveness and its position relative to its competitors, showing how well it is doing in capturing a portion of the market compared to others.

Question 16

In general, competitive intensity is somewhat low in the hospitality industry.

Accepted Answer

The hospitality industry is highly competitive due to factors such as a large number of players, low entry barriers, and the constant need for innovation and differentiation to attract customers.

Question 17

Any business that competes for the same customers in the same product class at the same point in time is known as macro competition.

Accepted Answer

Macro competition refers to the broader competitive environment, including all potential competitors across different product categories or industries that vie for the same consumer dollars, not just those competing for the same customers in the same product class at the same point in time.

Question 18

.It is a marketing truism that all opportunities are competitive advantages.

Accepted Answer

Not all opportunities are competitive advantages. Opportunities are favorable circumstances that a company can exploit to grow its business, but only those that are unique to the company and difficult for competitors to replicate can be considered competitive advantages.

Question 19

The competitive intensity in a marketplace is the fierceness with which competing companies do battle with each other

Accepted Answer

Competitive intensity refers to the level of rivalry among existing competitors in the marketplace, indicating how fiercely companies compete against each other for market share, customers, and resources.

Question 20

"Scale economies" is one of many factors that can contribute to competitive intensity.

Accepted Answer

Scale economies allow firms to reduce costs as they increase production, which can intensify competition as firms with scale economies can lower prices or invest in other competitive advantages.

Quiz 10: Marketing Intelligence and Research