Question 1

What is the perceived benefit of a product per unit consumed minus the product's monetary price?

Accepted Answer

A) Value creation 
B) Competitive advantage 
C) Consumer surplus 
D) Maximum willingness-to-pay 
E) Value chain 
A) Value creation 
B) Competitive advantage 
C) Consumer surplus 
D) Maximum willingness-to-pay 
E) Value chain C

Question 2

What term describes the price at which a consumer is indifferent between buying a product and going without it?

Accepted Answer

A) Value creation 
B) Competitive advantage 
C) Consumer surplus 
D) Maximum willingness-to-pay 
E) Value chain 
A) Value creation 
B) Competitive advantage 
C) Consumer surplus 
D) Maximum willingness-to-pay 
E) Value chain D

Question 3

Which of the following is not a common characteristic of capabilities?

Accepted Answer

A) They are valuable across multiple products or markets 
B) They are tacit 
C) They are easy to reduce to simple algorithms or procedure guides 
D) They are embedded in what Richard Nelson and Sidney Winter call organizational routines - well-honed patterns of performing activities inside an organization 
E) They can persist even though individuals leave the organization 
A) They are valuable across multiple products or markets 
B) They are tacit 
C) They are easy to reduce to simple algorithms or procedure guides 
D) They are embedded in what Richard Nelson and Sidney Winter call organizational routines - well-honed patterns of performing activities inside an organization 
E) They can persist even though individuals leave the organization C

Question 4

Which of the following represents consumer surplus in the value creation equation,(B-P)+ (P-C)?

Accepted Answer

A) B 
B) P 
C) C 
D) B-P 
E) P-C 
A) B 
B) P 
C) C 
D) B-P 
E) P-C

Question 5

Select the letter corresponding to the best answer.For a given consumer,any price-quality combination along the indifference curve yields the _______________.

Accepted Answer

A) Same consumer surplus 
B) Same maximum willingness-to-pay 
C) High consumer surplus 
D) Low consumer surplus 
E) Same competitive advantage 
A) Same consumer surplus 
B) Same maximum willingness-to-pay 
C) High consumer surplus 
D) Low consumer surplus 
E) Same competitive advantage

Question 6

What kind of strategy is one by which a firm exploits its benefit or cost advantage through a higher market share rather than through high price-cost margins?

Accepted Answer

A) Pricing strategy 
B) Share strategy 
C) Margin strategy 
D) Focus strategy 
E) Generic strategy 
A) Pricing strategy 
B) Share strategy 
C) Margin strategy 
D) Focus strategy 
E) Generic strategy

Question 7

What term best describes a targeting strategy in which the firm offers a variety or related products to a particular class of customers?

Accepted Answer

A) Broad-coverage strategy 
B) Focus Strategy 
C) Geographic specialization 
D) Product specialization 
E) Customer specialization 
A) Broad-coverage strategy 
B) Focus Strategy 
C) Geographic specialization 
D) Product specialization 
E) Customer specialization

Question 8

When multiple firms' price-quality positions line up along the same indifference curve offering a consumer the same amount of consumer surplus,what term describes the situation?

Accepted Answer

A) Price-quality parity 
B) Price matching 
C) Maximum willingness-to-pay 
D) Consumer surplus parity 
E) Consumer surplus 
A) Price-quality parity 
B) Price matching 
C) Maximum willingness-to-pay 
D) Consumer surplus parity 
E) Consumer surplus

Question 9

Which of the following best describes a focus strategy?

Accepted Answer

A) When a firm either offer a narrow set of varieties,serve a narrow set of customers,or do both 
B) When a firm sells products manufactured with raw materials from monopoly suppliers 
C) When a firm is the only one selling specific products 
D) When a firm faces many competitors and charges a lower price 
E) None of the above 
A) When a firm either offer a narrow set of varieties,serve a narrow set of customers,or do both 
B) When a firm sells products manufactured with raw materials from monopoly suppliers 
C) When a firm is the only one selling specific products 
D) When a firm faces many competitors and charges a lower price 
E) None of the above

Question 10

Which of the following is a resource?

Accepted Answer

A) Brand promotion skills 
B) Yield management capabilities 
C) Ability to manage sourcing and procurement functions 
D) Workers with firm-specific expertise or know-how 
E) Ability to integrate order-taking,procurement,manufacturing and out-bound logistics 
A) Brand promotion skills 
B) Yield management capabilities 
C) Ability to manage sourcing and procurement functions 
D) Workers with firm-specific expertise or know-how 
E) Ability to integrate order-taking,procurement,manufacturing and out-bound logistics

Question 11

Which of the following is a capability?

Accepted Answer

A) Patents and trademarks 
B) Brand-name reputation 
C) Installed base 
D) Organizational culture 
E) Sourcing skills 
A) Patents and trademarks 
B) Brand-name reputation 
C) Installed base 
D) Organizational culture 
E) Sourcing skills

Question 12

Which of the following is a characteristic of an experience good?

Accepted Answer

A) Warranty service is included in the sales price 
B) An independent evaluation certifies the product 
C) The product is heavily advertised 
D) Quality can be assessed only after the customer has used it for a while 
E) Noen of the above 
A) Warranty service is included in the sales price 
B) An independent evaluation certifies the product 
C) The product is heavily advertised 
D) Quality can be assessed only after the customer has used it for a while 
E) Noen of the above

Question 13

Which of the following is false with respect to the strategy of cost leadership?

Accepted Answer

A) A firm following a strategy of cost leadership is following a generic strategy narrow in scope 
B) A firm can follow a cost leadership strategy through achieving benefit parity by making products with the same B,but at a lower C than its rivals 
C) A firm can follow a cost leadership strategy through achieving benefit proximity by offering a B that is not much less than those of competitors 
D) A firm following a strategy of cost leadership creates more value than its competitors by offering products that have a lower C than those of its rivals 
E) A firm can follow a cost leadership strategy by offering a product that is qualitatively different from that of its rivals 
A) A firm following a strategy of cost leadership is following a generic strategy narrow in scope 
B) A firm can follow a cost leadership strategy through achieving benefit parity by making products with the same B,but at a lower C than its rivals 
C) A firm can follow a cost leadership strategy through achieving benefit proximity by offering a B that is not much less than those of competitors 
D) A firm following a strategy of cost leadership creates more value than its competitors by offering products that have a lower C than those of its rivals 
E) A firm can follow a cost leadership strategy by offering a product that is qualitatively different from that of its rivals

Question 14

Under what type of strategy does a firm either offer a narrow set of varieties,serve a narrow set of customers,or do both?

Accepted Answer

A) Generic strategy 
B) Margin strategy 
C) Focus strategy 
D) Share strategy 
E) Broad-coverage strategy 
A) Generic strategy 
B) Margin strategy 
C) Focus strategy 
D) Share strategy 
E) Broad-coverage strategy

Question 15

Which of the following statements best describes a characteristic of geographic specialization focus strategies?

Accepted Answer

A) Offers a variety of products and/or sells to a variety of customer groups within a narrow geography 
B) Offers an array of product varieties to a limited class of customers 
C) Caters to the particular needs of the customer group served 
D) Offers a limited set of products to an array of different customer groups 
E) Does an especially good job satisfying a subset of the needs of the consumer groups being served 
A) Offers a variety of products and/or sells to a variety of customer groups within a narrow geography 
B) Offers an array of product varieties to a limited class of customers 
C) Caters to the particular needs of the customer group served 
D) Offers a limited set of products to an array of different customer groups 
E) Does an especially good job satisfying a subset of the needs of the consumer groups being served

Question 16

What is another term for a "win-win" business opportunity?

Accepted Answer

A) Economic profit 
B) Excess total surplus 
C) Gains from trade 
D) Consumer surplus excess 
E) Benefit - Benefit transaction 
A) Economic profit 
B) Excess total surplus 
C) Gains from trade 
D) Consumer surplus excess 
E) Benefit - Benefit transaction

Question 17

The steepness (slope)of an indifference curve indicates which of the following?

Accepted Answer

A) The tradeoff a consumer is willing to make between price and quality 
B) The change in price holding product benefit constant 
C) The change in benefit holding price constant 
D) The tradeoff between consumer surplus and producer surplus 
E) None of the above 
A) The tradeoff a consumer is willing to make between price and quality 
B) The change in price holding product benefit constant 
C) The change in benefit holding price constant 
D) The tradeoff between consumer surplus and producer surplus 
E) None of the above

Question 18

What term describes the process of using market prices of unfinished and semi-finished goods to estimate the incremental value-created by distinctive parts of the value chain?

Accepted Answer

A) Value-added analysis 
B) Value creation analysis 
C) Market value analysis 
D) Value benefit drivers 
E) Value cost drivers 
A) Value-added analysis 
B) Value creation analysis 
C) Market value analysis 
D) Value benefit drivers 
E) Value cost drivers

Question 19

Consumer surplus is measured as which of the following?

Accepted Answer

A) The excess of sales price over manufacturing cost 
B) The amount a consumer pays for a good minus search costs 
C) The perceived manufacturing cost by a consumer as a percentage of sales price 
D) The perceived benefit of a product per unit consumed minus the product's monetary price 
E) The loss incurred by a firm selling at a price below its manufacturing cost 
A) The excess of sales price over manufacturing cost 
B) The amount a consumer pays for a good minus search costs 
C) The perceived manufacturing cost by a consumer as a percentage of sales price 
D) The perceived benefit of a product per unit consumed minus the product's monetary price 
E) The loss incurred by a firm selling at a price below its manufacturing cost

Question 20

What type of strategy seeks to serve all customer groups in the market by offering a full line of related products?

Accepted Answer

A) Generic strategy 
B) Margin strategy 
C) Focus strategy 
D) Share strategy 
E) Broad-coverage strategy 
A) Generic strategy 
B) Margin strategy 
C) Focus strategy 
D) Share strategy 
E) Broad-coverage strategy

What is the perceived benefit of a product per unit consumed minus the product's monetary price?

What term describes the price at which a consumer is indifferent between buying a product and going without it?

Which of the following is not a common characteristic of capabilities?

Which of the following represents consumer surplus in the value creation equation,(B-P)+ (P-C)?

Select the letter corresponding to the best answer.For a given consumer,any price-quality combination along the indifference curve yields the _______________.

What kind of strategy is one by which a firm exploits its benefit or cost advantage through a higher market share rather than through high price-cost margins?

What term best describes a targeting strategy in which the firm offers a variety or related products to a particular class of customers?

When multiple firms' price-quality positions line up along the same indifference curve offering a consumer the same amount of consumer surplus,what term describes the situation?

Which of the following best describes a focus strategy?

Which of the following is a resource?

Which of the following is a capability?

Which of the following is a characteristic of an experience good?

Which of the following is false with respect to the strategy of cost leadership?

Under what type of strategy does a firm either offer a narrow set of varieties,serve a narrow set of customers,or do both?

Which of the following statements best describes a characteristic of geographic specialization focus strategies?

What is another term for a "win-win" business opportunity?

The steepness (slope)of an indifference curve indicates which of the following?

What term describes the process of using market prices of unfinished and semi-finished goods to estimate the incremental value-created by distinctive parts of the value chain?

Consumer surplus is measured as which of the following?

What type of strategy seeks to serve all customer groups in the market by offering a full line of related products?

The Power of Principles: A Historical Perspective

The Horizontal Boundaries of the Firm

The Vertical Boundaries of the Firm

Integration and Its Alternatives

Competitors and Competition

Entry and Exit

The Dynamics Competing Across Time

Industry Analysis

Information and Value Creation

Sustaining Competitive Advantage

Performance Measurement and Incentives

Strategy and Structure

Environment, Power, and Culture

Economics Primer

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Exam 9: Strategic Positioning for Competitive Advantage

What is the perceived benefit of a product per unit consumed minus the product's monetary price?

What term describes the price at which a consumer is indifferent between buying a product and going without it?

Which of the following is not a common characteristic of capabilities?

Which of the following represents consumer surplus in the value creation equation,(B-P)+ (P-C)?

Select the letter corresponding to the best answer.For a given consumer,any price-quality combination along the indifference curve yields the _______________.

What kind of strategy is one by which a firm exploits its benefit or cost advantage through a higher market share rather than through high price-cost margins?

What term best describes a targeting strategy in which the firm offers a variety or related products to a particular class of customers?

When multiple firms' price-quality positions line up along the same indifference curve offering a consumer the same amount of consumer surplus,what term describes the situation?

Which of the following best describes a focus strategy?

Which of the following is a resource?

Which of the following is a capability?

Which of the following is a characteristic of an experience good?

Which of the following is false with respect to the strategy of cost leadership?

Under what type of strategy does a firm either offer a narrow set of varieties,serve a narrow set of customers,or do both?

Which of the following statements best describes a characteristic of geographic specialization focus strategies?

What is another term for a "win-win" business opportunity?

The steepness (slope)of an indifference curve indicates which of the following?

What term describes the process of using market prices of unfinished and semi-finished goods to estimate the incremental value-created by distinctive parts of the value chain?

Consumer surplus is measured as which of the following?

What type of strategy seeks to serve all customer groups in the market by offering a full line of related products?

The Power of Principles: A Historical Perspective

The Horizontal Boundaries of the Firm

The Vertical Boundaries of the Firm

Integration and Its Alternatives

Competitors and Competition

Entry and Exit

The Dynamics Competing Across Time

Industry Analysis

Information and Value Creation

Sustaining Competitive Advantage

Performance Measurement and Incentives

Strategy and Structure

Environment, Power, and Culture

Economics Primer

Filters