C A company pursuing a focus strategy a. attempts to serve all market segments. b. concentrates on building market share in one market segment. c. typically has more resources at its disposal than a differentiator does. d. need not be concerned that a differentiator will try to imitate the company's products or services. e. none of these. B
A company pursuing a cost-leadership strategy does which of the following? a. Includes substandard components in the product to keep costs low b. Chooses strategies that keep costs as low as feasible and are effective c. Keeps advertising expenses at a maximum d. Relies on patent protections to keep costs low e. None of these B If a company uses a focused cost-leadership strategy, it competes in the market segments where a. it can operate at no cost disadvantage. b. where cost is not a high concern. c. it can operate at a minimal cost disadvantage. d. there is frequently little or no competition. e. none of these. A A business model based on differentiation requires a company to a. make strategic choices that reinforce each other and increase the value of a good or service in the eyes of customers. b. serve several market segments simultaneously to take full advantage of differentiation. c. systematically raise its prices at stipulated times. d. develop a functional organization structure. e. all of these. A A strategic group is a group of companies within a particular industry a. with the same overhead costs. b. with the same cost structure.
c. that are pursuing a similar business model. d. that are using the same suppliers. e. all of these choices. C Yankee Candle Company offers customers candles that burn for 50-60 hours, much longer than most department store candle brands. Therefore, customers are willing to pay a higher price for these candles. Yankee Candle Company is utilizing which of the following? a. Cost leadership b. Focused cost leadership c. Market segmentation d. Product differentiation e. A strategic group D Lilly's Beauty Company sells haircare products such as shampoo, conditioner, and hairspray. These products are targeted at the average or typical customer and prices are typically low in comparison to other haircare products. Which of the following approaches to market segmentation is Lilly's Beauty Company using? a. No market segmentation b. Low market segmentation c. Medium market segmenation d. High market segmentation e. Focused market segmentation A Lucy's Swimwear Boutique offers swimwear that is targeted at affluent people who can afford to buy expensive, handmade swimsuits. Which of the following approaches to market segmentation is Lucy's Swimwear Boutique using? a. No market segmentation b. Low market segmentation
c. Medium market segmentation d. High market segmentation e. Focused market segmentation E At The Luxury Hotel in Miami, Florida, three hotel employees serve the needs of each guest. In every room, a guest can summon a chef, a maid, or a valet by pressing a button at bedside. Which generic business-level strategy is The Luxury Hotel utilizing?
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- Spring '06
- The American, d., B., c.