Deck 5: Learning From the Competition

Question 1

During which stage of the competition life cycle is pricing experimental?

A) decline
B) mature
C) embryonic
D) growth

Answer 1

embryonic

Question 2

Which of the following involves visiting customers and analyzing their perception of the competition?

A) competitive segmentation
B) primary research
C) secondary research
D) competitive mapping

Answer 2

primary research

Question 3

What is the term for the unique features that attract customers and encourage customer loyalty?

A) core competency
B) unique selling point
C) unique selling feature
D) distinctive competency

Answer 3

distinctive competency

Question 4

How does the cost leadership strategy successfully compete?

A) by developing and maintaining a unique perception of its product/service
B) by being the low-cost producer or service provider
C) by carving out a specific/narrow segment of the market
D) by providing a niche product/service at the lowest cost possible

Question 5

Which of the following is the competitive intelligence process of evaluating your competitor's strengths and weaknesses?

A) touchpoint analysis
B) SWOT analysis
C) competitive test matrix
D) secondary research

Question 6

Which of the following is the competitive intelligence process of analyzing customers' perceptions of the competition in order to find out what benefits and features are important to them?

A) SWOT analysis
B) customer analysis
C) touchpoint analysis
D) benefit analysis

Question 7

Which of the following best describes the business arena when it is in the embryonic stage?

A) saturated
B) highly competitive
C) relatively empty
D) status quo

Question 8

Which of the following is the competitive intelligence process of establishing unique benefits and features that the target customer values relative to the competition?

A) targeting
B) differentiation
C) positioning
D) SWOT analysis

Question 9

Which of the following best describes what happens as an industry matures?

A) Competition becomes fierce, and you are forced to try to attract customers away from your competition in order to survive.
B) There is little or no competition, and you are forced to try to attract customers away from your competition in order to survive.
C) You have to increase your prices to increase your profitability.
D) You have to decrease your prices to increase your profitability.

Question 10

Which of the following competitive marketing strategies is exemplified by the establishment of a "dollar store" that offers low retail prices?

A) differentiation
B) cost leadership
C) penetration
D) focus or niche market focus

Question 11

What is the first step in a competitive touchpoint analysis?

A) develop a distinctive competency
B) develop a competitive strategy
C) talk to the customers directly
D) conduct a competition analysis

Question 12

According to the author, what is a common time frame for high-tech businesses to go from birth to product penetration?

A) 3 months
B) 6 months
C) 1 year
D) 2 years

Question 13

Which of the following is the LEAST effective strategy for dealing with competition?

A) improving your customer service
B) forming strategic alliances
C) adding new benefits to your product or service
D) lowering your prices

Question 14

As described in the Chapter 5 opening case study, which of the following strategies was used by Goodbye Graffiti owner Perri Domm?

A) reduced competition and increased sales using a competitive test matrix
B) reduced prices and implemented a cost leadership competitive strategy
C) launched an expensive name and product recognition campaign
D) used a SWOT analysis that allowed him to evaluate the external weaknesses and internal opportunities of his competitors

Question 15

Which of the following companies is illustrated in the text as a possible invisible competitor?

A) 1-800-GOT-JUNK
B) Goodbye Graffiti
C) MVM
D) McDonald's

Question 16

What is the term for the process of establishing a unique product or service image in the mind of the customer?

A) customer imaging
B) customer mapping
C) positioning
D) perceptual imaging

Question 17

According to the author, who should dictate the changes required to stay competitive?

A) customers
B) competitors
C) partners
D) suppliers

Question 18

In which type of strategy does a business target one or more narrow market segments?

A) niche
B) product penetration
C) differentiation
D) market penetration

Question 19

Which stage of the competitive life cycle would be most likely to see price wars?

A) embryonic
B) growth
C) maturity
D) decline

Question 20

In which stage of the product life cycle stage does brand loyalty begin?

A) embryo
B) growth
C) maturity
D) decline

Question 21

Which type of competitors offer the same types of products or services as perceived by target customers?

A) secondary
B) direct
C) indirect
D) target

Question 22

Which of the following best describes a competitive SWOT?

A) the first step in your touchpoint analysis
B) a matrix grid that allows you to evaluate the strengths and weakness of your competitors
C) a tool to reduce competition and increase market share
D) an analysis of the internal and external conditions for perceived competitors

Question 23

In which stage of the product life cycle stage are no product improvements made?

A) embryo
B) growth
C) maturity
D) decline

Question 24

According to the text, what is the purpose of completing the competitor pricing review sheet?

A) contains a SWOT analysis of your three major competitors
B) contains a touchpoint analysis
C) assists with setting a price for your product or service that is acceptable to the market
D) assists with identifying the competitive strategy required

Question 25

Which of the following is a common goal of competitive intelligence?

A) to improve your customer service
B) to reduce the number of competitors
C) to improve your advertising and promotions
D) to develop new product/service opportunities

Question 26

Which type of partnership is formed between one or more organizations to create a competitive advantage?

A) niche
B) strategic
C) general
D) competitive

Question 27

During which of the following product life-cycle stages would longer production runs happen?

A) embryo
B) growth
C) maturity
D) decline

Question 28

Which strategy did Tire Pro owner James Grenchik use?

A) "If it is broken, fix it."
B) "If it ain't broke, don't fix it."
C) "If it is broken, find another product."
D) "If it ain't broke, improve or change it, or it will be broke."

Question 29

According to the text, which approach did Mina Cohen use to make her travel-with-a-purpose business grow?

A) franchise
B) partnership
C) joint venture
D) strategic alliance

Question 30

According to the author, which of the following best represents Action Step 31?

A) create a competitive touchpoint analysis
B) create a competitive test matrix
C) develop a competitive positioning strategy
D) identify who your direct and indirect customers are

Question 31

What is the level of competition in the maturity stage of the product life cycle?

A) nil
B) moderate
C) fierce
D) desperate

Question 32

What key factor allowed Mina Cohen's archaeological excursion business to move successfully from the embryonic stage to the growth stage?

A) having a distinctive competency
B) conducting a touchpoint analysis
C) forming a strategic alliance
D) having the right competitive strategy

Question 33

Which of the following is a way to survive profitably in a mature industry?

A) give better service
B) cut prices
C) avoid making changes to your products
D) do more marketing research

Question 34

According to the chapter opening vignette, what did Ron Taylor use to determine that his competition was invisible?

A) SWOT analysis
B) competitive intelligence
C) touchpoint analysis
D) strategic alliance

Question 35

Which strategy is used when a business is the first in its industry to offer a virtual fitting room?

A) cost leadership
B) differentiation
C) niche
D) focus

Question 36

According to the textbook, the affluent senior consumer will most likely want to purchase a product or service in the mature stage of the competitive life cycle.

Question 37

A competitive touchpoint is an analysis of your competitors' products and services.

Question 38

It was not surprising to learn that the major competitor of Crazy's Roadhouse (Chapter 5 case study) was another roadhouse down the street.

Question 39

According to the textbook, cost leadership is not a recommended competitive strategy for most small businesses.

Question 40

To succeed in a mature market, you must win customers from your competitors.

Question 41

A niche or focus competitive strategy is popular among smaller businesses.

Question 42

According to the textbook, product penetration refers to a calculated thrust into the market.

Question 43

A competitive test matrix will help you to develop your competitive pricing strategy.

Question 44

According to the text, for most small businesses, there are three broad competitive strategies that provide a framework to hone their particular driving force.

Question 45

According to the textbook, competitors in an industry usually behave in the same way.

Question 46

According to the textbook, a driving force or distinctive competency is a major consideration for your competitive positioning strategy.

Question 47

You can create uniqueness by adding service and product change.

Question 48

According to the text, strategic alliances or partnerships between competitors are growing trends.

Question 49

Small-business owners should be on the lookout for the invisible competitor.

Question 50

According to the textbook, your direct competitors are those people or organizations that customers perceive to provide the same types of products or services.

Question 51

According to the textbook, your major competitive strategy will be to lower your prices.

Question 52

According to the textbook, the major objective of gathering information about and monitoring the activities of your competitor (competitive intelligence) is to expand your market share.

Question 53

According to the textbook, strategic alliances can help you to guide your business into growth segments.

Question 54

In today's competitive environment, many entrepreneurs believe that if their business model isn't broken, then they shouldn't fix it.

Question 55

A common goal of competitive intelligence is to improve customer service.

Question 56

As your industry goes into decline, completion becomes ________________.

Question 57

The second stage of the competitive life cycle is __________.

Question 58

Any business that has the capacity and desire to provide similar products, services, or benefits is called your __________ __________.

Question 59

One method that can help you to evaluate your potential competitors is a competitive test _____________.

Question 60

You can guide your business into growth segments by constantly adding __________.

Question 61

The process of establishing unique benefits and features that the target customer values relative to the competition is called ______________ _______________.

Question 62

A partnership between one or more organizations that is formed to create a competitive advantage is called a ______________ _____________.

Question 63

An analysis of the internal strengths and weaknesses and external threats and opportunities for perceived competitors is commonly called a competitive ___________.

Question 64

Explain the term competitive positioning.

Question 65

Describe a competitive test matrix.

Question 66

Describe a mature market.

Question 67

Why is it important to understand the product life cycle?

Question 68

For most small businesses, there are three broad competitive strategies available that provide a framework to hone in on a particular driving force. Explain these three competitive approaches. Which of these three approaches is not normally recommended for small business?

Question 69

Briefly describe the objective of a competitive touchpoint analysis.

Question 70

Briefly describe the difference between a direct and an indirect competitor.