Question 1

Identify a demographic trend that influences market attractiveness.

Accepted Answer

Increased levels of immigration can lead to a more diverse population with different cultural and consumption preferences, potentially expanding the market for products and services.

Question 2

According to Porter's five competitive forces,rivalry among present competitors is greater under which of the following conditions?

Accepted Answer

Rivalry among present competitors is greater when low switching costs exist for the buyers because it makes it easier for customers to switch from one product to another, increasing competition among firms to retain their customers.

Question 3

Which of the following factors is considered a critical success factor in the case of retailing?

Accepted Answer

Location is considered a critical success factor in the case of retailing as it can greatly impact the foot traffic and accessibility of the store, leading to higher sales and profitability. While the other factors listed (price, promotion, product) are also important, they do not hold the same level of impact as location in the retail industry.

Question 4

Most companies and most goods deliver generic category benefits when:

Accepted Answer

The answer of Most companies and most goods deliver generic...

Question 5

When large music record companies such as Sony,Warner Music and Universal decided that they would make thousands of songs available for download over the internet,this was a clear strategic response to changes in the:

Accepted Answer

The decision by large music record companies to make thousands of songs available for download over the internet is a response to changes in the technological environment. The advancement in technology and the rise of the internet has changed the way people consume music, and the record companies have had to adapt to stay relevant and meet the changing demands of their customers.

Question 6

A distribution agency was using facsimile machines to send and receive long-distance messages.This was replaced with an all-in-one printer,flatbed scanner,copier and fax device that allowed the agency to accomplish multiple tasks at the same price.For the manufacturer of the facsimile machines,this example represents the:

Accepted Answer

The example represents the threat of substitute products as the all-in-one printer replaced the need for a separate fax machine, which was the main product of the facsimile machine manufacturer.

Question 7

The bargaining power of suppliers increases under all of the following conditions except:

Accepted Answer

The answer of The bargaining power of suppliers increases under...

Question 8

According to the opportunity/threat matrix,which of the following events should be closely monitored?

Accepted Answer

Events with a high probability of occurring and having a high impact should be closely monitored as they pose significant risks or opportunities that can greatly affect an organization.

Question 9

A(n)_____ is composed of individuals and organisations who are interested in,and are willing to buy,a good or service to obtain benefits that will satisfy a particular need.

Accepted Answer

A market is composed of individuals and organizations who have a need for a particular product or service and are willing to purchase it in order to satisfy that need. A sector refers to a specific area of the economy, such as healthcare or finance. A channel refers to the method or path used to distribute a product or service to consumers. An industry refers to a group of businesses that are involved in the same type of production or service, such as the automotive industry or the hospitality industry.

Question 10

Porter's model identifies rivalry among present competitors as one competitive force.According to this concept,why would the restaurant industry face greater rivalry?

Accepted Answer

C  D  The restaurant industry faces greater rivalry due to the absence of a dominant firm, little product differentiation, and low switching costs for buyers, making it easy for customers to switch between restaurants.

Question 11

Identify a sociocultural environment trend that affects market attractiveness.

Accepted Answer

Fitness and nutrition trends reflect changing consumer preferences and lifestyles, impacting market attractiveness by creating demand for related products and services.

Question 12

What does it mean when firms create new market space?

Accepted Answer

Creating new market space refers to finding opportunities in markets that do not currently exist, rather than competing within existing markets. Option B describes this type of approach, as firms look beyond their traditional industry boundaries to find new opportunities. The other options do not accurately describe this concept, as they focus on other strategic approaches.

Question 13

Which of the following conditions does not relate to the bargaining power of buyers?

Accepted Answer

Strong product differentiation exists among current players is related to the intensity of rivalry among existing competitors, not the bargaining power of buyers. The other options all relate to the bargaining power of buyers.

Question 14

Opportunities are attractive at the micro level for the industry when the company meets which of the following tests?

Accepted Answer

The answer of Opportunities are attractive at the micro level...

Question 15

A micro-level analysis of market and industry attractiveness is based on:

Accepted Answer

A micro-level analysis focuses on specific target customers, including their needs, preferences, and behaviors. It is not based on the industry as a whole or general market conditions, but rather on specific segments within the market. By understanding the attractiveness of different target customer segments, a company can develop targeted marketing messages and tailor its products or services to meet specific needs, increasing its chances of success in the market.

Question 16

The rise in production of products such as hybrid gas-electric vehicles,phosphate-free detergents and high-efficiency light bulbs is indicative of the impact of which of the following macro-environmental force?

Accepted Answer

The rise in production of environmentally friendly products like hybrid vehicles, phosphate-free detergents, and high-efficiency light bulbs reflects the impact of the ecological or natural environment. This indicates a shift towards sustainability and reduced environmental impact.

Question 17

Each macro-environmental trend has a distinct impact on the consumer and industrial market.Identify the scenario where industries such as check-cashing outlets and pawn shops will face a tough time staying in business.

Accepted Answer

When the economy is robust, people tend to have more disposable income and are less likely to need the services of check-cashing outlets and pawn shops. Additionally, they may be more likely to have access to traditional banking services, further reducing the need for these types of businesses. Therefore, industries such as check-cashing outlets and pawn shops will face a tough time staying in business during a robust economy.

Question 18

Marketers of such consumer services as health care,holiday accommodation and life insurance are capitalising on the general trend of an ageing population and are developing and implementing marketing strategies accordingly.What macro-environmental trend is acting as a catalyst here?

Accepted Answer

The macro-environmental trend acting as a catalyst here is the population/demographic trend of an ageing population. Marketers are capitalizing on this trend by developing and implementing marketing strategies for services such as health care, holiday accommodation, and life insurance that are particularly relevant to an ageing population.

Question 19

Deregulation:

Accepted Answer

Deregulation typically allows for increased competition and can create rapid growth in certain industries as new competitors enter the market. It can also lead to lower prices for consumers. While it may create inflationary pressures in certain instances, this is not always the case. It is also not designed to protect inefficiencies or restrict entry by new competitors.

Question 20

The problem of overcoming a cost disadvantage becomes more difficult for existing firms that share their output with their related businesses:

Accepted Answer

When strong economies of scale and learning effects are present, existing firms that share their output with related businesses will have a significant advantage over new entrants. However, this also means that existing firms will have a higher cost disadvantage to overcome if they want to improve their competitiveness.

Quiz 4: Understanding Market Opportunities