Exam 16: Strategies for Mature and Declining Markets

While making an online payment for his credit card,Bono got stuck as the server crashed.He was unable to move forward with the payment and was worried if he would be charged a late fee.When he made a call to his bank,the customer service staff at the bank requested him to wait for 24 hours and informed him that if the issue was not solved within 24 hours,he could make a complaint.He was also assured that he would not be charged any penalty.Which of the following service quality dimensions is demonstrated by the customer service staff in this scenario?

Strawberry Fields Inc. ,a supermarket offers discounts on a number of products in order to encourage larger volume purchases.Which of the following strategies is being implemented by the supermarket?

A harvesting strategy essentially involves additional investment in the business,increased marketing expenses,and in some cases,raising prices.

The reliability quality dimension can refer to the consistency of performance from purchase to purchase or to a product's uptime,the percentage of time that it can perform satisfactorily over its life.

The choice between a differentiation and a low-cost strategy is the critical determinant of success in mature markets.

Mention the benefits of maintaining customer retention and loyalty.

Which of the following will help analyzers and defenders to sustain a competitive advantage in established product-markets?

The objective of a _____ strategy is to generate cash quickly by maximizing cash flow over a relatively short term.

A strategy designed to increase the proportion of users by converting current nonusers in one or more major market segments where the market is relatively homogeneous with only a few large segments is referred to as a(n)_____ growth extension strategy.

An airline's TV ads include scenes of caring stewardesses attending to customer's needs.The stewardesses are seen serving passengers with good food,playing with children,turning off the lights when passengers fall asleep,and so on.Which of the following service quality dimensions is illustrated in these ads?

A niche strategy can be particularly effective when the target segment is too small to appeal to larger competitors or when the smaller firm can establish a strong differential advantage or brand preference in the segment.

When consumers make unrealistic expectations due to a firm's marketing techniques,a gap between service quality specifications and service delivery occurs.

Defender strategies work best in industries:

The maturity phase of an industry's life cycle is often depicted as one of volatility characterized by changes in the market shares of leading competitors and unsteady prices.

Which of the following is usually of greater interest to analyzer and defender businesses?

For consumer products,firms send technical advisories about new applications to the salesforce to present to their customers during regular sales calls.

The two objective performance dimensions of the service delivery system are assurance and empathy.

Describe the aspects of a profitable survivor strategy and a niche strategy.

A _____ strategy avoids any additional long-term investments in plant,equipment,or R&D.

Which of the following is a primary marketing objective of all competitors in mature markets?