Question 1

Ochre Inc.manufactures accessories such as belts, bags, and shoes.It produces the basic models of all these items on large scale.However, customers can customize these products by choosing embellishments of their choice, such as zippers, straps, and buckles.Ochre's manufacturing process best exemplifies _____.

Accepted Answer

A)   mass optimization
B)   mass customization
C)   mass consumerism
D)   mass productionE) B) and C)
F) B) and D)

Question 2

Which of the following questions denotes the last step in a consumption chain?

Accepted Answer

A)   How do consumers find your offering?
B)   How is your product stored/moved around?
C)   How is your product repaired, serviced, or disposed of?
D)   How is your product/service delivered?E) None of the above
F) A) and B)

Question 3

Explain how product features can be used to create differentiation in the market.

Accepted Answer

It is useful to think about offering different product features in three ways:
1.The product does a "better job" of meeting a customer need on existing product features.
2.The product does "more jobs" for a customer than other products.
3.The product does a "unique job" that nothing else does.
Does a better job on existing features:Some companies differentiate their products by focusing on one particular feature and doing a better job than other products of providing value on that particular feature.Some companies succeed by doing a better job providing service to customers by figuring out ways to exceed customer expectations.
Does more jobs:In some cases, a product might not do a better job on existing features but simply does more jobs, or meets more needs, for customers than competitor offerings.
Does a unique job:Some products do a completely unique job that other products simply do not do.Rather than simply doing existing jobs better or doing more of jobs than other products, they offer a completely new feature to the market.

Question 4

Willow Inc., a company that designs and manufactures watches, designs a digital watch allowing users to sync it with their mobile phones.It has a touchscreen, microphone, and Bluetooth device installed in it.The watch is also water-resistant for up to 200 meters.The other general features of the watch remain the same.Which of the following statements is true in this case?

Accepted Answer

A)   The touchscreen feature enables the product to do more jobs on existing functions in terms of product differentiation.
B)   The Bluetooth device feature enables the product to do a better job of the existing functions in terms of product differentiation.
C)   The feature of water-proof material enables the product do more jobs in terms of product differentiation.
D)   The microphone feature enables the product to do a unique job in terms of product differentiation.E) A) and C)
F) B) and C)

Question 5

Companies focus most on establishing brand image when:

Accepted Answer

A)   they can differentiate their products based on their features.
B)   the quality of their products is higher than that of others in the market.
C)   the familiarity principle doesn't work for their products.
D)   they have trouble differentiating their product based on convenience.E) C) and D)
F) B) and C) D

Question 6

The research and development department of Chi Inc.studies the buying patterns of its customers.If it starts with the customers in the first step of the consumption chain, which of the following does it most likely study?

Accepted Answer

A)   How do its customers find its products?
B)   How do its customers order its products?
C)   How do its customers become aware of their needs?
D)   How do its customers pay for the products?E) A) and C)
F) B) and C)

Question 7

Whenever customers of Black Inc., a mobile manufacturer, have a complaint to make about a product not being up to the mark, the company makes it a point to contact the customer or even go to their homes to understand the issue.The company believes that this will help retain customers and create better products.Which step of the consumption chain is this scenario depicting?

Accepted Answer

A)   The third step: how do consumers make their final selections?
B)   The fifth step: how is your product/service delivered?
C)   The sixth step: how is your product/service paid for?
D)   The ninth step: what if customers aren't satisfied and need a return or exchange?E) A) and B)
F) B) and C)

Question 8

In terms of product differentiation, convenience refers to:

Accepted Answer

A)   how long a product functions optimally.
B)   how unique a product is when compared to others.
C)   how efficient a product is in meeting consumers' primary needs.
D)   how easy it is for customers to purchase a product.E) B) and D)
F) None of the above

Question 9

When firms rely on brand image to differentiate products, some of them associate their products with positive qualities in the minds of customers.These are known as _____.

Accepted Answer

A)   prestige brands
B)   convenient brands
C)   utility brands
D)   functional brandsE) C) and D)
F) B) and D)

Question 10

Tina prefers buying products for the emotional dimension of the job they perform rather than its functional attributes.Jay prefers to buy products for the social dimension of the job they do rather than its functional or emotional attributes.In this case, which of the following is most likely to be true?

Accepted Answer

A)   Tina buys a bike because of its low rate of fuel consumption.
B)   Tina buys an original painting by her favorite artist even though it is not in good condition.
C)   Jay buys a car he loves even though his friends think it does not look classy.
D)   Jay buys a piece of furniture that allows more storage space despite it looking odd.E) A) and B)
F) A) and C)

Question 11

Peter always buys shoes from Brown Boot's Inc., although other brands offering shoes of same quality are available closer to home and at lower prices.Brown Boots differentiates itself through a strong brand image.Their advertisements associate the brand with class, style, and elegance.Which of the following is a likely reason for Peter's preference toward Brown Boot's?

Accepted Answer

A)   Quality
B)   Reliability
C)   Convenience
D)   PrestigeE) C) and D)
F) B) and D)

Question 12

Leo Foods is an eatery that sells organic food.It opens a number of outlets across the state, creates a website that makes ordering and take-away easy, and also does not charge a delivery fee for its regular customers.Which step of the consumption chain does this scenario depict?

Accepted Answer

A)   The sixth step: how is your product stored/moved around?
B)   The fourth step: how do consumers become aware of their need?
C)   The tenth step: how is your product/service paid for?
D)   The second step: how do consumers find your offering?E) A) and B)
F) A) and D)

Question 13

Define mass customization and explain what companies must do in order for this method to be successful.

Accepted Answer

Mass customization is when a company mas...

Question 14

Suede Inc., a company that manufactures bags, makes extensive use of advertising to compete in the market.The features of its product are similar to existing products in the market.It uses other promotional tools such as discounts, coupons, and rebates to increase its customer base.In this scenario, which of the following elements does Suede rely on to differentiate its products?

Accepted Answer

A)   Product reliability
B)   Convenience
C)   Brand image
D)   QualityE) None of the above
F) B) and D)

Question 15

During the process of mapping the consumption chain of a product, Nina looks at the methods followed by companies which send their engineers to check laptops when they detect that a possible bug could be affecting a system.Which of the following questions does this example address?

Accepted Answer

A)   What if customers aren't satisfied and need a return or exchange?
B)   What help do customers need to become familiar with the product?
C)   How is your product stored?
D)   How is your product repaired, serviced, or disposed of?E) B) and C)
F) None of the above

Question 16

What are the three ways in which product features can be offered for the purpose of differentiation?

Accepted Answer

The following are the three ways in whic...

Question 17

Which of the following is true of product differentiation?

Accepted Answer

A)   It is a matter of customer thought and perception.
B)   It cannot occur when two companies use similar technologies.
C)   It does not typically require higher costs.
D)   It is independent of intangible features such as brand image and value.E) B) and C)
F) A) and C)

Question 18

A strategy whereby companies attempt to gain competitive advantage by offering value that is not available in other products or services is known as _____.

Accepted Answer

A)   product depreciation
B)   mass customization
C)   product differentiation
D)   service disseminationE) C) and D)
F) B) and D) C

Question 19

_____ is grouping customers based on similar needs.

Accepted Answer

Customer s...

Question 20

Which of the following products best exemplifies reliability?

Accepted Answer

A)   A computer that has greater processing speed than others in the market
B)   A phone that offers the unique function of face recognition
C)   A washing machine that works optimally for many years
D)   An air conditioner that detects movement automaticallyE) A) and D)
F) A) and B)

Exam 5: Differentiation Advantage

Correct Answer
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Which of the following questions denotes the last step in a consumption chain?

Correct Answer
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Explain how product features can be used to create differentiation in the market.

Correct Answer
verified

Companies focus most on establishing brand image when:

Correct Answer
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D

The research and development department of Chi Inc.studies the buying patterns of its customers.If it starts with the customers in the first step of the consumption chain, which of the following does it most likely study?

Correct Answer
verified

Correct Answer
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In terms of product differentiation, convenience refers to:

Correct Answer
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When firms rely on brand image to differentiate products, some of them associate their products with positive qualities in the minds of customers.These are known as _____.

Correct Answer
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Correct Answer
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Correct Answer
verified

Leo Foods is an eatery that sells organic food.It opens a number of outlets across the state, creates a website that makes ordering and take-away easy, and also does not charge a delivery fee for its regular customers.Which step of the consumption chain does this scenario depict?

Correct Answer
verified

Define mass customization and explain what companies must do in order for this method to be successful.

Correct Answer
verified
Mass customization is when a company mas...
View Answer

Correct Answer
verified

During the process of mapping the consumption chain of a product, Nina looks at the methods followed by companies which send their engineers to check laptops when they detect that a possible bug could be affecting a system.Which of the following questions does this example address?

Correct Answer
verified

What are the three ways in which product features can be offered for the purpose of differentiation?

Correct Answer
verified
The following are the three ways in whic...
View Answer

Which of the following is true of product differentiation?

Correct Answer
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A strategy whereby companies attempt to gain competitive advantage by offering value that is not available in other products or services is known as _____.

Correct Answer
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C

_____ is grouping customers based on similar needs.

Correct Answer
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Customer s...
View Answer

Which of the following products best exemplifies reliability?

Correct Answer
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Exam 5: Differentiation Advantage

Correct AnswerverifiedShow Answer

Which of the following questions denotes the last step in a consumption chain?

Correct AnswerverifiedShow Answer

Explain how product features can be used to create differentiation in the market.

Correct AnswerverifiedShow Answer

Companies focus most on establishing brand image when:

Correct AnswerverifiedD

The research and development department of Chi Inc.studies the buying patterns of its customers.If it starts with the customers in the first step of the consumption chain, which of the following does it most likely study?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In terms of product differentiation, convenience refers to:

Correct AnswerverifiedShow Answer

When firms rely on brand image to differentiate products, some of them associate their products with positive qualities in the minds of customers.These are known as _____.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Leo Foods is an eatery that sells organic food.It opens a number of outlets across the state, creates a website that makes ordering and take-away easy, and also does not charge a delivery fee for its regular customers.Which step of the consumption chain does this scenario depict?

Correct AnswerverifiedShow Answer

Define mass customization and explain what companies must do in order for this method to be successful.

Correct AnswerverifiedMass customization is when a company mas...View AnswerShow Answer

Correct AnswerverifiedShow Answer

During the process of mapping the consumption chain of a product, Nina looks at the methods followed by companies which send their engineers to check laptops when they detect that a possible bug could be affecting a system.Which of the following questions does this example address?

Correct AnswerverifiedShow Answer

What are the three ways in which product features can be offered for the purpose of differentiation?

Correct AnswerverifiedThe following are the three ways in whic...View AnswerShow Answer

Which of the following is true of product differentiation?

Correct AnswerverifiedShow Answer

A strategy whereby companies attempt to gain competitive advantage by offering value that is not available in other products or services is known as _____.

Correct AnswerverifiedC

_____ is grouping customers based on similar needs.

Correct AnswerverifiedCustomer s...View AnswerShow Answer

Which of the following products best exemplifies reliability?

Correct AnswerverifiedShow Answer

Correct Answer
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D

Correct Answer
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Correct Answer
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Mass customization is when a company mas...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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The following are the three ways in whic...
View Answer

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Correct Answer
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C

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Customer s...
View Answer

Correct Answer
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