Exam 16: Strategies for Mature and Declining Markets

Transition periods are commonly accompanied by a shakeout during which weaker businesses fail,withdraw from the industry,or are acquired by other firms.

As a market matures,total volume stabilizes;replacement purchases rather than first-time buyers account for the vast majority of that volume.

A market expansion strategy seeks to:

A gap between a customer's expectations and a marketer's perceptions can be removed by collecting necessary information to determine what service attributes customers consider important.

Peter Joplin Inc. ,a car repair help shop,has an expert mechanic who carefully inspects consumers' car brakes,car oil,battery,and ensures that the repairs meet customers' satisfaction.This implies that the store is applying the service quality dimension of _____ to attract customers.

Defenders in mature industries focus on product and market development to avoid being leapfrogged by competitors.

Conditions of demand help determine the strategic attractiveness of declining product markets.

Which of the following is the critical determinant of success in mature markets?

A niche strategy is indicated when:

The lower the exit barriers,the less hospitable a product-market will be during the decline phase of its life cycle.

In a mature market,domestic geographic expansion is often viable.

In some labor-intensive industries,a business can achieve a cost advantage,at least in the short term,by gaining access to inexpensive labor.

A software called Positron launched by GCZ Ltd.is known for absolute prevention and removal of malware and computer viruses.Which of the following service quality dimensions does Positron software have?

Stintson Automobiles Ltd.provides cars for rent.The music systems installed in the rental cars were removed by the firm in order to obtain a low-cost position.This implies that Stintson Automobiles Ltd.had applied a(n):

Describe the challenges in mature markets.

Empathy is a crucial dimension of service quality for online consumers.

Which of the following gaps can be removed by giving a clear description regarding the company's service policies to its employees?

During a _____,the growth rate in a product-market declines and weaker businesses fail,withdraw from the industry,or are acquired by other companies.

Briefly describe the factors that help determine the strategic attractiveness of declining product markets.

Which of the following strategies may be appropriate for units with a leading,or at least a profitable,share of one or more major segments in a mature industry?