Question 1

According to PIMS data,a strong correlation exists between ________ and ________.&#10;A) productivity; marketing mix&#10;B) profitability; market share&#10;C) productivity; market share&#10;D) profitability; marketing strategies

Accepted Answer

PIMS data shows that there is a strong correlation between a company's profitability and its market share. This means that companies with higher market share tend to also have higher profitability.

Question 2

Studies show that firms with externally focused strategies outperform firms with internally focused strategies.

Accepted Answer

Studies do not universally show that firms with externally focused strategies outperform those with internally focused strategies. Performance can depend on various factors including industry context, market conditions, and the specific implementation of the strategy.

Question 3

According to research,which of the following is LEAST likely to lead to both higher margins and higher market share for a firm?&#10;A) human resource orientation&#10;B) effective management&#10;C) quality products&#10;D) resource access

Accepted Answer

Human resource orientation, while important for organizational culture and employee satisfaction, is less directly linked to achieving higher margins and higher market share compared to effective management, quality products, and resource access. These latter factors more directly influence a firm's competitive position and financial performance.

Question 4

Research indicates that an increase of ________ percentage point(s)in market share correlates to an increase of ________ percentage point(s)in profitability.&#10;A) 1; 3&#10;B) 2; 4&#10;C) 3; 1&#10;D) 4; 2

Accepted Answer

The answer of Research indicates that an increase of ________...

Question 5

In most cases,market share correlates with a firm's ________.&#10;A) culture&#10;B) profitability&#10;C) ancillary sales&#10;D) marketing mix

Accepted Answer

Market share is the percentage of sales or revenue a company has relative to the total market. A higher market share means the company is selling more products or services than its competitors in the same market. This typically leads to higher profitability as the company is able to capture a larger portion of the revenue available in the market. Therefore, in most cases, market share correlates with a firm's profitability. Culture, ancillary sales and marketing mix may play a role in determining market share but are not as directly related to profitability as market share is.

Question 6

What are the positive and negative effects of a strategy based on gaining market share?

Accepted Answer

The answer of What are the positive and negative effects...

Question 7

Including market share as an objective in a business strategy is appropriate in all of the following cases EXCEPT when ________.&#10;A) customer loyalty is hard to measure&#10;B) industries plan to set standards&#10;C) new entrants need to be barred&#10;D) ancillary sales are anticipated

Accepted Answer

Market share should not be pursued as an objective when customer loyalty is hard to measure. In such cases, other metrics such as customer satisfaction, customer retention, or customer lifetime value may be more appropriate. In the other cases mentioned (B, C, and D), market share can be a relevant and valid objective in a business strategy.

Question 8

Which of the following is LEAST likely to be associated with the firm that has the higher market share?&#10;A) learning curve effects&#10;B) economies of scale&#10;C) economies of scope&#10;D) higher profitability

Accepted Answer

Economies of scope refer to the efficiencies primarily associated with demand-side changes, such as increasing or decreasing the scope of marketing and distribution, or by leveraging synergies between different product lines. This concept is less directly related to market share compared to learning curve effects, economies of scale, and higher profitability, which are more directly influenced by the volume of production and sales that typically accompany higher market share.

Question 9

Research indicates that although market share is desirable,it does not necessarily correlate to higher profitability for a firm.

Accepted Answer

The answer of Research indicates that although market share is...

Question 10

Based on market share research,which of the following is a true statement?&#10;A) Skillfully managed firms tend to have higher market shares.&#10;B) Better product quality increases customer loyalty but not profitability.&#10;C) Market share has been shown to be the primary cause of a firm's profitability.&#10;D) Internal-based strategies lower performance compared to external-based strategies.

Accepted Answer

Market share research has shown that skillfully managed firms tend to have higher market shares. This suggests that effective management is a key factor in achieving a larger share of the market.

Question 11

Market share is best described as a(n)________.&#10;A) value-adding activity&#10;B) internal-oriented objective&#10;C) customer-oriented activity&#10;D) competitor-oriented objective

Accepted Answer

The answer of Market share is best described as a(n)________.&#10;A)...

Question 12

Which of the following would most likely provide information about the relationships between a firm's activities,strategies,and results?&#10;A) PIMS data&#10;B) MEP chart&#10;C) BCG matrix&#10;D) SWOT analysis

Accepted Answer

The answer of Which of the following would most likely...

Question 13

A firm with a higher market share than a competitor will have lower per-unit costs.

Accepted Answer

The answer of A firm with a higher market share...

Question 14

Which of the following indicates how well a firm is succeeding in comparison to a competitor?&#10;A) value map&#10;B) fixed costs&#10;C) market share&#10;D) experience curve

Accepted Answer

The answer of Which of the following indicates how well...

Deck 13: Note : Market-Share Effects