Deck 3: Positioning Services in Competitive Markets

Question 1

Customers can often be segmented based on their willingness to pay a higher price to obtain higher levels of service.

Answer 1

True

Question 2

A service-focused firm offers a narrow range of services to a fairly broad market.

Answer 2

True

Question 3

The objective of internal corporate analysis is to identify the organization's resources, any limitations or constraints, its goals, and how it values shape the way it does business.

Answer 3

True

Question 4

A customer-driven services marketing strategy includes all of the following except ____________.

A)customer analysis
B)analyzing market segments
C)handling customer complaint
D)articulating desired position in the market
E)competitor analysis

Question 5

An example of a determinant attribute for an airline service is ____________.

A)The quality of in-flight service
B)plane size
C)oxygen masks
D)floatation devices

Question 6

One of the reasons why firms with a narrow product line elect to serve multiple segments is to create a portfolio of customers that hedge against low demand risks.

Question 7

Which of the following is NOT one of the four principles of writing a good positioning statement?

A)Competitive advantage.
B)Point of difference.
C)Target audience.
D)Reason to believe.
E)Frame of reference.

Question 8

Market niches that seem too narrow to offer sufficient sales in one country are indicative of globally narrow market niches.

Question 9

Attributes that distinguish competing services from one another are the most important ones.

Question 10

Market segments to be targeted using existing or new services can be identified using ____________.

A)Market analysis
B)Competitor analysis
C)Company analysis
D)Customer Analysis

Question 11

All potential buyers cannot be targeted often because ____________.

A)their needs are varied
B)their purchase behaviour is varied
C)their consumption is varied
D)they are geographically spread
E)All of the above

Question 12

Which of the following is NOT one of the four basic focus strategies?

A)Service focused
B)Unfocused
C)Fully focused
D)Refocused
E)Market focused

Question 13

Market analysis addresses all of the following factors EXCEPT ____________.

A)Overall size and growth of the market
B)Customers in the market
C)Margins and profit potential
D)Demand levels and trends

Question 14

A fully-focused organization concentrates on a narrow market segment, but has a wide range of services.

Question 15

A target segment should only be selected on the basis of their sales and profit potential.

Question 16

A ____________ is composed of a group of buyers who share common characteristics, needs, purchasing behavior, or consumption patterns.

A)target class
B)class
C)focal segment
D)market segment
E)financial segment

Question 17

Positioning plays a pivotal role in marketing strategy, because it links market analysis and competitive analysis to environmental analysis.

Question 18

____________ is one that a firm has selected from among those in the broader market and may be defined on the basis of several variables.

A)segmentation field
B)target segment
C)holistic segment
D)mass customization

Question 19

The best way to anticipate possible competitive responses is to identify all current or potential competitors and to put oneself in their own management's shoes by conducting an internal corporate analysis for each of these competitors.

Question 20

The same individuals may set different priorities for attributes according to all EXCEPT which of the following?

A)The purpose of using the service.
B)Who makes the decision.
C)The timing of use.
D)Whether the individual is using the service alone or with a group.
E)The cost of the service.

Question 21

Convenient departure times count as which attribute for business travelers?

A)Important
B)Determinant
C)Alternative
D)Segmentation
E)Quantitative

Question 22

Dubai's Burj Al Arab is favorably positioned along which attributes?

A)Personal service
B)Convenience
C)Level of physical extravagance
D)a & b
E)a & c

Question 23

Segmentation variables at Contiki Holidays include all of the following EXCEPT ____________.

A)geographic
B)income
C)lifestyle
D)household size
E)age

Question 24

Bright Horizons strategy included which of the following?

A)Marketing services to employers instead of parents.
B)Hiring inexpensive labor.
C)Commoditized service offerings.
D)Heavy regulatory oversight.
E)All of the above are strategies employed by BH.

Question 25

LinkedIn positioned itself away from other social sites by focusing exclusively on personal networking and party snapshots.

Question 26

Visa's positioning is about having one card fits all.

Question 27

Bright Horizons used low-cost strategies to achieve their competitive advantage.

Question 28

Rentokil started off as a firm that manufactured rat poison and a pesticide for killing leeches.

Question 29

Give an example of a psychographic segmentation variable.

Question 30

What are the three Cs to analyze when developing a market positioning strategy?

Question 31

Give an example of a key service attribute used in transportation services.

Question 32

Shouldice Hospital is an example of a fully focused firm.

Question 33

Why is it possible to segment customers according to price levels?

Question 34

Explain what a fully-focused and a market-focused strategy are and discuss the opportunities and risks inherent in selecting each strategy.

Question 35

Give an example of service tiering in the airline industry.

Question 36

What are the characteristics of an unfocused service category?

Question 37

What are the two dimensions along which a company's focus can be described?

Question 38

What are the advantages of positioning charts?

Question 39

Lasik eye surgery and Starbucks are examples of which focus strategy?

A)Market focus.
B)Fully focused.
C)Service focused.
D)Partially focused.
E)Unfocused.

Question 40

Distinguish between important and determinant attributes.

Question 41

How did positioning maps help the managers of Palace?

Question 42

What were the main benefits of capsule hotels when they first started up?

Question 43

How did Rentokil Initial grow from a manufacturer of rat poison, to the world's large business support services company?

Question 44

Discuss the analysis that took place to develop Bright Horizons and the ways in which they overcame unappealing industry characteristics.

Question 45

Give an example of an industry that utilizes service tiering.