Marketing Final Exam

Competitive advantage ans c having a cost competitive

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Unformatted text preview: ntage ANS: C Having a cost competitive advantage means being the low-cost competitor in an industry while maintaining satisfactory profit margins. PTS: 1 Thinking REF: 19-20 OBJ: 02-5 TOP: AACSB Reflective KEY: CB&E Model Strategy MSC: BLOOMS Application 42. Aldi is a no-frills grocery chain. It sells grocery staples right out of crates and boxes with emphasis on low-priced, private label brands. Aldi stores are typically about one-third the size of the traditional supermarket. By controlling expenses, Aldi enables its customers to save 30 to 50 percent compared to Kroger customers. The chain targets bargain hunters who are willing to rent a cart and bag their own groceries. Aldi has a: a. market-homogeneous focus b. cost competitive advantage c. product aggregation strategy d. revenue-based competitive advantage e. profit-enhanced advantage ANS: B A cost competitive advantage is a set of unique features of a company and its product that are perceived by the target market as significant and superior to the competition. PTS: 1 REF: 19-20 Thinking KEY: CB&E Model Strategy OBJ: 02-5 TOP: AACSB Reflective MSC: BLOOMS Application 43. All of the following are sources of a cost competitive advantage EXCEPT: a. reengineering b. experience curves c. break-even analyses d. efficient labor e. production innovations ANS: C Costs can be reduced in a variety of ways, such as experience curves, efficient labor, no-frills goods and services, government subsidies, product design, reengineering, production innovations, and new methods of service delivery. PTS: 1 REF: 20 Thinking KEY: CB&E Model Strategy OBJ: 02-5 TOP: AACSB Reflective MSC: BLOOMS Analysis 44. _____ show costs declining at a predictable rate as experience with a product increases. a. Liquidity growth curves b. EOQ graphs c. Break-even analyses d. Experience curves e. Supply/demand curves ANS: D This is the definition of experience curves. PTS: 1 REF: 20 Thinking KEY: CB&E Model Strategy OBJ: 02-5 TOP: AACSB Reflective MSC: BLOOMS Comprehension 45. Jiffy Mixes does not do any type of traditional advertising or use fancy packaging in marketing its products. The company stores its own wheat and makes its own flour and little blue boxes. Jiffy is an example of a low-cost strategy based on: a. efficient labor b. no-frills goods and services c. government subsidies d. product design e. reengineering ANS: B No-frills goods and services offer low costs to the consumer because they do not do much marketing. PTS: 1 REF: 20 Thinking KEY: CB&E Model Strategy OBJ: 02-5 TOP: AACSB Reflective MSC: BLOOMS Application 46. Zipcar is a car rental service found in many metropolitan areas. It targets people who take mass transit or carpool to work but who occasionally need a car to run errands, visit the doctor, or check on a sick child. Zipcar is one of a few companies currently providing cars that can be rented by the hour. Zipcar has created a(n) _____ advantage. a. reengineering b. experience curve c. service dif...
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