Question 1

A business that dominates markets with a relative advantage in distribution,sales coverage,or marketing communications can control (and often block)market access,creating a source of competitive advantage.Which source of competitive advantage does this create?

Accepted Answer

This creates a marketing advantage, as the business is able to control and block market access through their strong distribution, sales coverage, and marketing communication. This gives them a competitive advantage over other businesses in the market.

Question 2

Which of the following is true of channel advantage?

Accepted Answer

Channel advantage refers to a business's ability to have better access to a market through its distribution channels compared to its competitors. It is a source of marketing advantage as it allows the business to reach customers more effectively and efficiently, resulting in increased sales and profitability. Cost advantage and differentiation advantage may contribute to channel advantage, but they are not dependent on it. Reactive strategies may be used to capitalize on channel advantage, but they do not create it. Therefore, the correct answer is E.

Question 3

Businesses that lack both customer knowledge and competitor knowledge,and make competitive moves from an internal perspective with no real market knowledge are said to be working with a(n)________ strategy.

Accepted Answer

The correct term for businesses that operate without customer or competitor knowledge and make competitive moves based solely on an internal perspective is "inside-the-box." This approach contrasts with "outside-the-box" thinking, which involves innovative and creative strategies that go beyond the norm.

Question 4

As a business adds products to its product line that have the same purchased materials and similar manufacturing processes,it is able to lower the average unit cost of all products,producing a ________ effect.

Accepted Answer

The answer of As a business adds products to its...

Question 5

Calculate the total share of the three largest competitors of a firm,if the firm has a market share of 60% and relative market share of 200.

Accepted Answer

The answer of Calculate the total share of the three...

Question 6

A market-based strategy that leverages a knowledge advantage with respect to both customers and competitors,and can be implemented with a nonconfrontational approach that minimizes losses,is known as a(n)________ strategy.

Accepted Answer

The description provided in the question is characteristic of an oblique strategy. This approach relies on utilizing unique knowledge about customers and competitors to gain a competitive advantage in the market without directly confronting others. It emphasizes finding creative and indirect ways to achieve strategic objectives. The other options listed do not fully match this description.

Question 7

Calculate the percentage cost of goods sold by a business if the cost advantage index of the business is 150 and the average percentage cost of goods sold by its top three competitors are 40%,50%,and 30%,respectively.

Accepted Answer

The answer of Calculate the percentage cost of goods sold...

Question 8

Which of the following is true of product line advantage?

Accepted Answer

The answer of Which of the following is true of...

Question 9

Which of the following is true about customer reactive strategies?

Accepted Answer

The answer of Which of the following is true about...

Question 10

Which of the following formulas is used to calculate a company's relative market share?

Accepted Answer

The formula used to calculate relative market share is (Company's Market Share/Total Share of Three Largest Competitors)x 100. This formula compares the company's market share to the total market share of the three largest competitors. This gives a more accurate picture of the company's position in the market compared to its competitors.

Question 11

Which of the following is true of variable cost advantage?

Accepted Answer

The answer of Which of the following is true of...

Question 12

Calculate the cost advantage index if the percentage cost of goods sold by the business is 40% and the average percentage cost of goods sold by its top three competitors are 50%,60%,and 70%,respectively.

Accepted Answer

The answer of Calculate the cost advantage index if the...

Question 13

As a business builds more of the same product,there is a greater opportunity for ________ effects.

Accepted Answer

Learning effects refer to the improvements in efficiency and productivity that occur as a result of experience and knowledge gained from producing the same product repeatedly. As the business builds more of the same product, they will become more familiar with the process, leading to increased efficiency and productivity.

Question 14

Brand reputation advantage is a type of ________ advantage.

Accepted Answer

Brand reputation advantage is a type of differentiation advantage, as it sets a company apart from competitors in terms of the perception of their brand by consumers. It allows companies to charge higher prices and have greater customer loyalty, which can lead to increased profits.

Question 15

A larger production volume allows for production and purchasing economies that lower the unit cost of a product,thereby producing a ________ effect.

Accepted Answer

The scale effect refers to the cost savings achieved through an increase in production volume, which leads to lower unit production costs.

Question 16

Which of the following is true about a marketing cost scope effect?

Accepted Answer

The marketing cost scope effect refers to cost efficiencies that a company can achieve through extending its product line. This can include savings in marketing and distribution costs due to the shared use of existing channels and brand recognition, rather than the costs associated with launching a completely new brand.

Question 17

As the sales force is given more products to sell to the same customers,a(n)________ effect is created.

Accepted Answer

The marketing cost scope effect occurs when selling multiple products to the same customers reduces the overall marketing costs per product.

Question 18

Calculate the average percentage cost of goods sold for the top three competitors of a business when the cost advantage index of the business is 120 and the percentage cost of goods sold by the business is 60%.

Accepted Answer

The cost advantage index is calculated as (Average COGS of competitors / COGS of the business) * 100. Given the index is 120 and the business's COGS is 60%, the equation is (Average COGS / 60) * 100 = 120. Solving for Average COGS gives 50%.

Question 19

Calculate the approximate relative market share of a company whose market share is 76%,while the market shares of its three largest competitors are 13%,22%,and 26%.

Accepted Answer

The relative market share is calculated by dividing the company's market share by the sum of the market shares of its competitors. In this case, the relative market share is 76% / (13% + 22% + 26%) = 125%.

Question 20

Calculate a company's market share if the company's relative market share is 60 and the market shares of its three largest competitors are 14%,8%,and 16%.

Accepted Answer

The answer of Calculate a company's market share if the...

Quiz 6: Competitive Position and Sources of Advantage

A business that dominates markets with a relative advantage in distribution,sales coverage,or marketing communications can control (and often block) market access,creating a source of competitive advantage.Which source of competitive advantage does this create?