BUS 475 EXAM 2 LATEST - ACTUAL EXAM

BUS 475 EXAM 2 LATEST - ACTUAL EXAM

100 QUESTIONS AND CORRECT DETAILED ANSWERS

(VERIFIED ANSWERS ) |ALREADY GRADED A+

The essence of a broad differentiation strategy is to

• Appeal to the high-end part of the market and concentrate on providing a top-

of-the-line product to consumers.

• Incorporate a greater number of differentiating features into its

products/services than rivals.

• Offer unique product attributes in ways that are valuable and appealing and that

buyers consider worth paying for.

• Lower buyer switching costs.
• Outspend rivals on advertising and promotion in order to inform and convince b
• ANSWER- C. Offer unique product attributes in ways that are valuable and

appealing and that buyers consider worth paying for.

A differentiation strategy works best when

• Many rival firms are also pursuing a differentiation approach.
• Buyer's needs are homogeneous.
• There are few other ways to make a product unique to buyers.
• Technological change is fast-paced and competition revolves around rapidly

evolving product features.

• Firms have ample excess cash to invest in R&D activities. - ANSWER- D.

Technological change is fast-paced and competition revolves around rapidly evolving product features. 1 / 3

A healthy fast-casual restaurant that offers only vegetarian and vegan meals insists on portraying organic ingredients in its advertisements, charges a higher price for its meals, and has a rigorous quality control process to insure the cleanliness of its facilities. What strategy is the manufacturer using to deliver superior value to customers?

• Leveraging its power over suppliers.
• Signaling value by targeting sophisticated buyers.
• Lowering the buyer's overall cost.
• Incorporating ta - ANSWER- B. Signaling value by targeting sophisticated

buyers.

A low-cost provider strategy can defeat a differentiation strategy when

• Sellers are not charging a price premium.
• There are few ways to differentiate a product or a service and many buyers

perceive these differences valuable.

• Many rivals are pursuing a similar differentiation approach.
• Customers are basically satisfied and don't think extra attributes are worth a

higher price features.

• A company can offset thinner profit margins per unit by selling enough

additional units to incr - ANSWER- D. Customers are basically satisfied and don't think extra attributes are worth a higher price features.

A focused differentiation strategy aims at securing competitive advantage by

• Offering a product carefully designed to appeal to the unique preferences and

needs of a narrow, well-defined group of buyers. 2 / 3

• Catering to buyers looking for an upscale product at an attractively low price.
• Developing product attributes that no other company in the industry has.
• Providing niche members with a top-of-the-line product at a premium price.
• Convincing a narrow, well-defined group of buyers th - ANSWER- A. Offering

a product carefully designed to appeal to the unique preferences and needs of a narrow, well-defined group of buyers.

A firm pursuing a best-cost provider strategy

• Tries to outcompete a low-cost provider by attracting buyers on the basis of

charging the best price.

• Seeks to be the low-cost provider in the largest and fastest growing (or best)

market segment.

• Tries to have the best cost (as compared to rivals) for each activity in the

industry's value chain.

• Seeks to deliver superior value to buyers by satisfying their expectations on key

attributes and beating rivals in meeting customer expectation - ANSWER- D.Seeks to deliver superior value to buyers by satisfying their expectations on key attributes and beating rivals in meeting customer expectations on price.

The marketing emphasis of a company pursuing a broad differentiation strategy is to

• Underprice rival brands with comparable features.
• Communicate the product's ability to serve the customer's every need.
• Tout differentiating features and charge a premium price that more than covers

the extra costs of differentiating features.

• Out-advertise rivals and make frequent use of discount coupons.
• / 3