Question 1

Many product managers tend to define "competition" too narrowly.

Accepted Answer

Many product managers focus primarily on direct competitors (companies offering similar products or services) and often overlook indirect competitors (alternative solutions that address the same customer needs), leading to a narrowly defined view of competition.

Question 2

Competition can exist for customers in terms of their budgets, when they use a product and benefits sought.

Accepted Answer

Competition for customers can indeed exist in various dimensions including their budgets (price competition), when they use a product (timing or convenience), and the benefits they seek from the product (product features or quality), as businesses strive to meet diverse customer needs and preferences.

Question 3

A product's value is defined as the presence (or absence) of a characteristic or attribute.

Accepted Answer

A product's value is determined by the benefits it provides to the customer, which can include but is not limited to the presence of specific characteristics or attributes. It also encompasses quality, functionality, and emotional satisfaction among other factors.

Question 4

Product category competition is typically composed of other firms in the product manager's industry.

Accepted Answer

Product category competition refers to the competition among firms that offer products or services within the same category, which means they are in the same industry and directly compete for the same set of customers.

Question 5

Product form competition is outward oriented and its competitors are defined by looking outside the firm to the customers.

Accepted Answer

The answer of Product form competition is outward oriented and...

Question 6

Each level of competition requires the firm to perform the same set of tasks at progressively higher levels of intensity so that a product can be successful in the market.

Accepted Answer

Different levels of competition often require firms to adapt and perform a variety of tasks, not just the same tasks at higher levels of intensity, to ensure a product's success in the market. This can include innovation, marketing strategies, customer service improvements, and more.

Question 7

Since obtaining and retaining customers is essential, product form and category competition is the most crucial form of competition for most firms.

Accepted Answer

Product form and category competition is the most crucial form of competition for most firms because it directly affects the firm's ability to attract and retain customers.

Question 8

Relying exclusively on external sources of information that solely define competition based on physical product similarities, will overlook both generic and budget competitors.

Accepted Answer

Relying solely on external sources that define competition based on physical product similarities will miss competitors who offer different types of solutions to the same customer need (generic competitors) or those who compete on price (budget competitors), thus providing an incomplete competitive landscape.

Question 9

Electronic scanners provide fast, reliable data in consumer purchase behavior.

Accepted Answer

Electronic scanners, used at retail checkout points, quickly capture and record data on consumer purchases, providing accurate and immediate insights into buying behavior.

Question 10

Since consumers are rarely consciously aware of all the factors underlying their purchases, consumer judgments should not be used in efforts to analyze competition.

Accepted Answer

Consumer judgments, even if not fully conscious of all factors, provide valuable insights into preferences, perceptions, and decision-making processes that are crucial for analyzing competition and understanding market dynamics.

Question 11

All of the following are customer oriented bases of competition, EXCEPT
A) Budgets
B) When customers use a product
C) Benefits sought
D) Theme / copy strategy
E) Why customers use the product

Accepted Answer

The answer of All of the following are customer oriented...

Question 12

Resource oriented competition is more likely to involve which of the following?
A) Theme / copy strategy
B) Employees
C) Media
D) Distribution
E) Price

Accepted Answer

The answer of Resource oriented competition is more likely to...

Question 13

Which of the following types of competition faced by a product manager is most likely to be intentional?
A) Competition within a company
B) Price competition
C) Geographic competition
D) Distribution competition
E) Foreign competition

Accepted Answer

The answer of Which of the following types of competition...

Question 14

A product's _____ is / are defined as the presence-or absence-of a characteristic or attribute.
A) Value
B) Features
C) Price
D) Prestige
E) Market share

Accepted Answer

Features of a product are defined as the presence or absence of characteristics or attributes that a product possesses. These can include physical aspects, functionalities, or any other attribute that defines what the product is and what it can do.

Question 15

Natures Best Cornflakes and Natures Best LowCal Cornflakes are both crunchy flakes of corn, have a vanilla flavor and are sweet. However LowCal Cornflakes has fewer calories and is artificially sweetened. Here, Natures Best Cornflakes and Natures best LowCal Cornflakes have
A) Entirely different features
B) Identical values
C) Different values of some of the features
D) All the same features and values
E) Totally different values as well as features

Accepted Answer

Both products share some common features such as being crunchy flakes of corn with a vanilla flavor and sweetness. However, they differ in calorie content and the type of sweetener used, indicating they have different values for some features.

Question 16

Which of the following provides the NARROWEST perspective of competition because it considers only those products that "look" the same as the product or service in question?
A) Product category competition
B) Generic competition
C) Product form competition
D) Product share competition
E) Budget competition

Accepted Answer

Product form competition provides the narrowest perspective of competition as it focuses only on products that are similar in appearance and function to the product in question, ignoring broader categories or needs that the product could fulfill.

Question 17

Identify the INCORRECT statement regarding product form competition.
A) It is a narrow view of competition
B) It only considers products that "look" the same as the product or service in question
C) It provides the best perspective for a longer-run view of competition
D) It is a convenient definition of competition
E) It provides the set of the closest competitors in a product feature sense

Accepted Answer

Product form competition, which focuses on products that appear similar or serve similar functions, offers a narrow perspective suitable for short-term analysis rather than a comprehensive, longer-run view of competition. This is because it doesn't account for broader market dynamics or potential substitutes that might not "look" the same.

Question 18

This level of competition is based on products or services with similar features and is the "traditional" approach to determining the composition of a competitive set.
A) Product form
B) Generic competition
C) Budget competition
D) Market share
E) Product category

Accepted Answer

Product category is the traditional approach to determining the composition of a competitive set.

Question 19

Which of the following levels of competition is longer term and focuses on substitutable product categories?
A) Generic competition
B) Product form competition
C) Product type competition
D) Product category competition
E) Brand category competition

Accepted Answer

Generic competition is longer term and focuses on substitutable product categories, as it involves products or services that are seen as alternatives or substitutes for each other, even if they are not the same type or form. This level of competition goes beyond specific brands or product types to include all potential alternatives that satisfy the same basic customer need.

Question 20

Generic competition
A) Is the narrowest view of competition
B) Only considers products that "look" the same as the product or service in question
C) Defines the market as consisting of those products and services fulfilling the same customer need
D) Is the most convenient definition of competition
E) Provides an extremely short term focus

Accepted Answer

Generic competition defines the market more broadly, considering all products and services that fulfill the same customer need, rather than just those that appear similar or are in the same category. This perspective allows for a more comprehensive understanding of competitive forces.

Quiz 2: Defining the Competitive Set

Many product managers tend to define "competition" too narrowly.

Competition can exist for customers in terms of their budgets, when they use a product and benefits sought.

A product's value is defined as the presence (or absence) of a characteristic or attribute.

Product category competition is typically composed of other firms in the product manager's industry.

Product form competition is outward oriented and its competitors are defined by looking outside the firm to the customers.

Each level of competition requires the firm to perform the same set of tasks at progressively higher levels of intensity so that a product can be successful in the market.

Since obtaining and retaining customers is essential, product form and category competition is the most crucial form of competition for most firms.

Relying exclusively on external sources of information that solely define competition based on physical product similarities, will overlook both generic and budget competitors.

Electronic scanners provide fast, reliable data in consumer purchase behavior.

Since consumers are rarely consciously aware of all the factors underlying their purchases, consumer judgments should not be used in efforts to analyze competition.

All of the following are customer oriented bases of competition, EXCEPT

Resource oriented competition is more likely to involve which of the following?

Which of the following types of competition faced by a product manager is most likely to be intentional?

A product's _____ is / are defined as the presence-or absence-of a characteristic or attribute.

Natures Best Cornflakes and Natures Best LowCal Cornflakes are both crunchy flakes of corn, have a vanilla flavor and are sweet. However LowCal Cornflakes has fewer calories and is artificially sweetened. Here, Natures Best Cornflakes and Natures best LowCal Cornflakes have

Which of the following provides the NARROWEST perspective of competition because it considers only those products that "look" the same as the product or service in question?

Identify the INCORRECT statement regarding product form competition.

This level of competition is based on products or services with similar features and is the "traditional" approach to determining the composition of a competitive set.

Which of the following levels of competition is longer term and focuses on substitutable product categories?

Generic competition