Question 1

business strategy should be challenged with respect to whether it contains a real and perceived value proposition and whether that value proposition is relevant, ________ and ________.

Accepted Answer

sustainable, and feasible.

Question 2

six quality dimensions include: performance, conformance to specifications, features, customer support, process quality, and _________.

Accepted Answer

Aesthetic design.

Question 3

A successful low cost strategy is usually multifaceted and supported by a cost-oriented culture.

Accepted Answer

A successful low cost strategy typically involves multiple tactics such as efficient supply chain management, streamlined operations, and focused cost-cutting measures. Additionally, a culture that prioritizes cost efficiency and encourages employees to seek out ways to reduce costs can support the implementation and sustainability of such a strategy.

Question 4

CSR refers to customer social relationship management.

Accepted Answer

CSR actually refers to corporate social responsibility, which is a company's efforts to take responsibility for the social and environmental impacts of its business.

Question 5

Business strategies should offer a clear value proposition to customers and be supported by assets and competencies and functional strategies and programs.

Accepted Answer

A business strategy should offer a clear value proposition to customers, and it should be supported by the company's assets and competencies as well as functional strategies and programs.

Question 6

Firms that chose customer relationship as a value proposition just need to provide good functional benefits of their product or service.

Accepted Answer

Firms that choose customer relationship as a value proposition need to go beyond just providing good functional benefits. They need to build strong relationships with customers through personalized attention, excellent customer service, loyalty programs, etc.

Question 7

The experience curve is automatic and occurs over time.

Accepted Answer

The experience curve effect is not automatic; it results from deliberate efforts to improve efficiency and reduce costs through learning, scale economies, and process improvements as production volume increases over time.

Question 8

is believed that corporate social responsibility does not create shareholder value but rather just enhances a brand image.

Accepted Answer

Many studies have shown that corporate social responsibility can lead to increased financial performance and shareholder value, such as improved reputation, increased customer loyalty, reduced costs, and access to new markets. Therefore, it is not just about enhancing brand image, but also creating long-term value for stakeholders.

Question 9

A signal of high quality for clothing is price.

Accepted Answer

Price is often perceived as a signal of quality for clothing because consumers tend to associate higher prices with better materials, craftsmanship, and brand prestige.

Question 10

Niche specialists are successful because their strategies are based on commitment to a single product line or part of the market.

Accepted Answer

Niche specialists focus on serving a specific segment of the market or a single product line, which allows them to develop expertise and provide unique value to their customers. This targeted approach often leads to greater success in their chosen niche.

Question 11

value proposition is often an umbrella concept under which the supporting assets and competences and functional strategies and programs can be grouped.

Accepted Answer

The statement is true. Value proposition refers to the unique benefits that a company or product offers to customers, and supporting assets and competences and functional strategies and programs are the means by which a company delivers that value proposition. Therefore, they can all be grouped under the umbrella concept of the value proposition.

Question 12

With the experience curve, the total cost of a product will decline at a predictable rate as experience in building the product accumulates.

Accepted Answer

The experience curve theory suggests that as experience in building a product accumulates, there will be a predictable decline in the total cost of the product, resulting in greater efficiency and lower production costs. Therefore, the statement is true.

Question 13

The low-cost strategic option consists of all of the approaches below except:
A) Scale economies
B) No-frills product/service
C) Delivery of superior customer service
D) Production/operations
E) Experience curve

Accepted Answer

The low-cost strategic option focuses on reducing costs to offer products/services at a lower price than competitors. While superior customer service can be a competitive advantage, it does not necessarily align with the low-cost strategy. Therefore, choice C is not a part of the low-cost strategic option.

Question 14

An experience curve strategy will usually enhance product innovation.

Accepted Answer

An experience curve strategy focuses on reducing costs through increased production and learning, rather than on product innovation.

Question 15

Value should be determined by the firm and not by the customer.

Accepted Answer

Value is ultimately determined by the customer's perception and willingness to pay for a product or service. While a firm can influence value through their pricing strategy, product quality, and overall customer experience, it is ultimately up to the customer to determine the value of what they receive.

Question 16

Schlitz improved its market position with its aggressive low-cost strategy.

Accepted Answer

Schlitz, once a top-selling beer brand, did not primarily use a low-cost strategy to improve its market position. Instead, its decline was attributed to cost-cutting measures that affected quality, leading to a damaged reputation and loss of market share.

Question 17

To obtain significant operational economies, it is useful to examine the value chain and look for inherently high-cost components that could be eliminated or reduced.

Accepted Answer

By identifying high-cost components in the value chain and eliminating or reducing them, operational economies can be achieved. This is a common practice in business to improve efficiency and reduce costs.

Question 18

Perceived value can be created without compromising the brand.

Accepted Answer

Perceived value can be created through various means such as offering promotions or packages, improving customer service, or enhancing product features without compromising the brand's image or reputation. By providing value-added benefits, customers are more likely to have a positive perception of the brand, leading to increased loyalty and sales.

Question 19

the business-to-business space, more companies are trying to move from being component suppliers to being systems solution players because systems-based organizations will more likely to be more cost effective.

Accepted Answer

These companies are making this move because a systems-based organization will be more likely to control the customer relationship.

Question 20

order for the quality option to be effective, a firm doesn't need senior management commitment, because the quality department is in charge of the total quality management program.

Accepted Answer

Senior management commitment is essential for the overall success of a total quality management program. Without it, the quality department may not have the necessary resources or support to implement and sustain quality initiatives throughout the organization.

Quiz 8: Alternative Value Propositions

business strategy should be challenged with respect to whether it contains a real and perceived value proposition and whether that value proposition is relevant, and .