Question 1

Four companies dominate the cereal industry. These firms produce in large volumes, promote heavily, and control access to the supermarket shelves through "slotting allowances," which are payments to retailers in return for shelf space. These combined factors have allowed these four firms to create ________ over the competition.

Accepted Answer

The description provided suggests that the four dominant cereal companies have created a sustainable competitive advantage through their large volumes, heavy promotion, and control of shelf space through slotting allowances. This has allowed them to outcompete smaller cereal companies and maintain their position in the market. Therefore, answer choice C (a sustainable competitive advantage) best fits the description.

Question 2

A competitive advantage based on location is often sustainable because

Accepted Answer

Location cannot be easily duplicated, meaning that a business that has a prime location can maintain a competitive advantage for a longer period of time, as competitors cannot simply copy or replicate the same location.

Question 3

Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually results in

Accepted Answer

Retaining customers can lead to increased profits in the long-term as customers who are satisfied with a bank's services are likely to continue doing business with them, potentially leading to repeat business and referrals. This can be more cost-effective than acquiring new customers as the bank does not have to spend as much on marketing and promotion.

Question 4

Singapore Airlines seeks to differentiate itself from competing airlines, in part through innovative design of its airplane seats and in-flight entertainment systems. Through continuous innovation in these areas, Singapore Airlines is pursuing a(n)________ macro strategy.

Accepted Answer

By focusing on innovative design of airplane seats and in-flight entertainment systems, Singapore Airlines is emphasizing product excellence as a macro strategy. This involves differentiation through the quality of the product or service offered, rather than simply price or operational efficiency.

Question 5

Some universities, recognizing the convenience of distance learning, have begun to offer fully online, accredited degree programs. These universities are most likely pursuing which macro strategy?

Accepted Answer

The answer of Some universities, recognizing the convenience of distance...

Question 6

One example of a customer loyalty program is

Accepted Answer

The "frequent diner" restaurant card offers a tangible reward for repeat purchases, which incentivizes customers to continue dining at the restaurant and earn more rewards. It also provides a sense of exclusivity for frequent customers, making them feel valued and more likely to continue doing business with the restaurant.

Question 7

Miranda is analyzing opportunities for her company. What decision is least likely to provide the company with a sustainable competitive advantage?

Accepted Answer

Lowering prices may provide a temporary competitive advantage, but it is not sustainable in the long term as competitors can easily copy it. Sustainable competitive advantage comes from unique resources or capabilities that competitors cannot easily replicate, such as a well-known brand name, high levels of customer satisfaction, patented technology, or an efficient supply chain.

Question 8

For many years, Southwest Airlines distinguished itself as the low-cost airline. Now, many other low-cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest that

Accepted Answer

The examples indicate that having a single strategy, such as low-cost or online ticketing, is not enough to maintain a sustainable competitive advantage. Other competitors can copy those strategies. Therefore, companies must have multiple strategies or continually innovate to stay ahead.

Question 9

The automobile manufacturing industry closely watches annual consumer satisfaction surveys. For years, Japanese car companies consistently had the highest levels of customer satisfaction, creating a(n)________ for these companies.

Accepted Answer

A sustainable competitive advantage is an advantage that allows a company to maintain a competitive edge over its competitors over a long period of time. The consistent high level of customer satisfaction for Japanese car companies creates a competitive advantage that is difficult for other companies to replicate, giving them a sustainable competitive advantage.

Question 10

Firms achieve ________ through efficient procedures and excellent supply chain management.

Accepted Answer

Operational excellence refers to achieving high levels of efficiency and productivity through streamlined procedures and effective supply chain management. This enables firms to reduce costs and improve quality, providing a competitive advantage in the market. Customer excellence, loyalty, and value-based pricing are also important, but they are not necessarily achieved through efficient procedures and supply chain management. Locational excellence refers to having a strategic location that provides easy accessibility to customers or resources.

Question 11

Over the last few months, Carlos and his colleagues have analyzed the current business situation and identified target markets for his firm's personal care products. Finally, they developed the products, prices, distribution, and promotion that should appeal to each of those target markets. In doing so, Carlos has also identified what he believes is an advantage his competitors cannot match. Carlos and his colleagues have been developing

Accepted Answer

Carlos and his colleagues have gone through the process of developing a marketing strategy, which involves analyzing the current business situation, identifying target markets, developing products, prices, distribution, and promotion, and identifying a competitive advantage.

Question 12

Sasha's Sandwich Shop rewards customers with five points every time they purchase a lunch entrée. Once customers earn 25 points, they receive a free lunch entrée. What tactic is this business using to achieve customer excellence?

Accepted Answer

By rewarding customers with points and offering a free lunch entrée once they have earned 25 points, Sasha's Sandwich Shop is creating customer loyalty. This tactic encourages customers to continue to purchase their meals from the shop in order to earn points and eventually receive a free meal, which can lead to repeat business and increased customer satisfaction.

Question 13

What is considered the best way to build a sustainable competitive advantage using product excellence?

Accepted Answer

By creating a clear, distinctive brand image, the company can differentiate itself from competitors and build a loyal customer base. This can lead to a sustainable competitive advantage as customers are willing to pay more for the brand they trust and prefer. Being the first to offer desired features may be effective initially, but competitors can easily copy these features, minimizing the advantage. Having the most features on each model can lead to increased costs without necessarily adding value to the customer. Focusing on being cutting edge and eliminating older features may neglect the needs of customers who still require those features. Copying the market leader's features at a lower cost may lead to a price war and reduce profitability.

Question 14

Which actions would be the most likely to support and enhance an operational excellence macro strategy?

Accepted Answer

Implementation of new software to improve communication with suppliers is a process improvement action that supports and enhances an operational excellence macro strategy. It helps improve efficiency, reduce waste, and streamline operations. The other options do not directly relate to process improvement or operational excellence.

Question 15

Vivien has been a loyal customer of her hair salon for years-just like most of the other patrons. She believes that her stylist, the salon owner, is the best in the business. Not only does the salon provide excellent beauty services, it also features an exceptional, timely staff that always puts the customer first. Furthermore, the salon, which is right in the heart of town, is easily accessible. Vivien's salon has earned

Accepted Answer

D  E  The salon has a sustainable competitive advantage due to its excellent services and customer-first approach. It has a loyal customer following, as evidenced by Vivien and other patrons. Additionally, its central location provides locational excellence, making it easily accessible.

Question 16

Customer retention programs are based on what concept?

Accepted Answer

Customer retention programs focus on building long-term relationships with customers and viewing their value from a lifetime perspective, rather than simply trying to maximize profits in the short-term. This approach acknowledges that retaining a customer and encouraging repeat business is often more cost-effective than acquiring a new customer.

Question 17

Gabriela's is a women's clothing retailer headquartered in Spain with stores located in many countries. Gabriela's has developed a "quick response" system that allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Gabriela's operation is optimized for this system, making it difficult for competitors like The Gap to duplicate. Gabriela's has established

Accepted Answer

Gabriela's "quick response" system and optimized operation for adapting to changing customer preferences creates a sustainable competitive advantage, making it difficult for competitors to duplicate.

Question 18

Which macro strategy allows Amazon to guarantee free two-day shipping to its prime members?

Accepted Answer

Operational excellence refers to the implementation of efficient and effective internal processes and systems to deliver products and services in a timely and cost-effective manner. This is what allows Amazon to offer free two-day shipping to its Prime members as they have optimized their supply chain, warehouse and distribution operations, and logistics to ensure timely delivery without compromising on quality.

Question 19

Ted's Tire Store sets itself apart from competitors by the extra attention it pays to its customers. To retain customer loyalty, it provides fast, courteous service in a clean, professional-looking environment. Ted's has used this strategy for over 40 years, expanding to 15 outlets. Ted's Tire Store uses a ________ macro strategy.

Accepted Answer

Ted's Tire Store emphasizes providing excellent customer service to retain customer loyalty. This aligns with the customer excellence macro strategy, which involves focusing on the customer experience and building strong customer relationships.

Question 20

Customers around the world know Pepsi and consider it a primary "go-to" brand if they want a refreshing drink. This positioning reflects Pepsi's careful implementation of

Accepted Answer

Pepsi's brand positioning as a go-to refreshing drink reflects their targeting strategy and their marketing mix. They have targeted a particular segment of the market looking for a refreshing beverage, and their marketing mix, including product, price, promotion, and place, has been carefully crafted to appeal to that segment. Pepsi has successfully executed this strategy, resulting in strong brand recognition and customer loyalty.

Quiz 2: Developing Marketing Strategies and a Marketing Plan