Question 1

This is the broadest view of competition.
A) Generic competition
B) Budget competition
C) Product category competition
D) Product form competition
E) Brand form competition

Accepted Answer

The answer of This is the broadest view of competition.
A)...

Question 2

This view of competition considers all products and services competing for the same customer dollar as forming a market.
A) Product category
B) Product form
C) Market share
D) Generic
E) Budget

Accepted Answer

The budget competition view considers all products and services that compete for the same customer dollar, regardless of their form or category, as forming a market.

Question 3

Budget competition
A) Is very difficult to implement strategically
B) Is the narrowest view of competition
C) Is defined as consisting of those products and services fulfilling the same customer need
D) Is based on those products or services with similar features
E) considers only those products that "look" the same as the product or service in question

Accepted Answer

The answer of Budget competition
A) Is very difficult to implement...

Question 4

Web-based _____ seek(s) to bundle disparate services that fulfill a customer's needs for a particular transaction.
A) Segmentation
B) Stratification
C) Metamediaries
D) Super-sites
E) Conglomerates

Accepted Answer

Metamediaries are web-based entities that bundle various services to fulfill a customer's needs for a specific transaction, acting as intermediaries that connect customers with these services.

Question 5

Travelmate is an online travel solutions website. Its most direct competitors are travel agents. This site also offers links to financing, insurance and other services bringing in competitors from other categories. Travelmate can be BEST considered as a(n)
A) Metamediary
B) Network service
C) Internet service provider
D) Server
E) Market segment

Accepted Answer

A metamediary integrates various services and information from different industries, such as travel, financing, and insurance, similar to what Travelmate does by offering travel solutions along with links to financing, insurance, and other services.

Question 6

At the product form competitive level, the product manager must convince customers that the _____ is / are better than others in the product form.
A) Generic benefits
B) Product category
C) Product form
D) Brand
E) Product features

Accepted Answer

At the product form competitive level, the product manager's goal is to convince customers that their brand is superior to others within the same product form, highlighting unique qualities, benefits, or values associated with their specific brand.

Question 7

Identify the level of competition where the product management task involves convincing customers that their product category is the best way to satisfy needs.
A) Product category
B) Product form
C) Brand
D) Generic
E) Budget

Accepted Answer

At the generic level of competition, product management focuses on convincing customers that their product category is the best way to satisfy their needs, as it involves competing with different types of products that fulfill the same basic need.

Question 8

At the _____ level of competition, the product manager must convince customers that the generic benefits are the best way to spend their discretionary income.
A) Budget
B) Product form
C) Product category
D) Generic
E) Consumer

Accepted Answer

The answer of At the _____ level of competition, the...

Question 9

Generic competition is most critical when
A) Competition is focused on rival brands in the same category
B) Competition is focused on rival product forms
C) A totally new product category is introduced
D) The market has reached maturity
E) The market is saturated

Accepted Answer

Generic competition is most critical when a totally new product category is introduced because it challenges existing categories and can redefine consumer preferences and market dynamics.

Question 10

As a firm moves from product form to budget competition
A) The focus upon brand name competition intensifies
B) The marketing budget is typically reduced
C) It faces a similar competitor pool
D) Customer targets tend to change
E) The needs to be satisfied become more specific

Accepted Answer

The answer of As a firm moves from product form...

Question 11

The managerial judgment approach, to assessing the set of competitors is most likely to use all of the following to develop judgments about the sources of present and future competition, EXCEPT
A) Experience
B) Salesperson call reports
C) Distributors
D) Company sources
E) Commercial data services

Accepted Answer

Commercial data services are external sources of information, whereas the managerial judgment approach relies on internal sources like experience, salesperson call reports, distributors, and company sources.

Question 12

Identify the two alternative approaches to assessing the set of competitors.
A) Market determined parameters and Standardization
B) Managerial judgment and Customer-based evaluation
C) Regulatory definitions and Market determined parameters
D) Benchmarking and Standardization
E) Managerial judgment and Sales definitions

Accepted Answer

Managerial judgment and Customer-based evaluation are two alternative approaches to assessing the set of competitors. Managerial judgment relies on the expertise and experience of managers to identify and evaluate competitors, while customer-based evaluation focuses on the perceptions and experiences of customers to determine the competitive landscape.

Question 13

External sources of information, such as commercial data services and the Standard Industrial Classification code used by the U. S. government, define competition based on
A) Physical product similarities
B) Managerial judgment
C) Customer-based evaluation
D) Behavioral attributes
E) Customer judgments

Accepted Answer

External sources like commercial data services and SIC codes categorize competition based on physical product similarities, grouping businesses that produce similar products or services.

Question 14

The use of predefined categories for defining competitive sets, provided by commercial data services and / or the US government, could completely overlook
A) Product form competitors
B) Product category competitors
C) Generic and budget competitors
D) Product feature competitors
E) Product value competitors

Accepted Answer

Predefined categories often focus on traditional or direct competitors, potentially missing out on generic and budget competitors that don't fit neatly into established categories but still compete for the same customer base.

Question 15

A key source of purchase data used in consumer packaged goods applications is data collected from
A) Web cameras
B) Document scanners
C) Monitors
D) Electronic scanners
E) Social networks

Accepted Answer

Electronic scanners, such as those used at checkout counters in retail stores, are a key source of purchase data in consumer packaged goods applications. They capture detailed information about the products purchased, which can be analyzed for insights into consumer behavior and preferences.

Question 16

Identify the INCORRECT statement pertaining to electronic scanners "reading" UPC codes at the point-of-purchase.
A) They provide fast, accurate behavioral data
B) They are best used for gathering data on infrequently purchased infrastructural goods
C) They are used to estimate sales and market shares for brands
D) They are useful for identifying patterns of repeat brand purchases and brand switching
E) They are widely used in the consumer packaged goods industry

Accepted Answer

Electronic scanners are most effective for frequently purchased consumer goods rather than infrequently purchased infrastructural goods. They excel in tracking sales, market shares, and consumer behavior for items that are bought regularly, making them invaluable in the consumer packaged goods industry.

Question 17

All of the following are problems with using purchase data to understand product form and category competition EXCEPT that
A) Brand switches occur across complements as well as substitutes
B) They represent what consumers actually do, not what they might do
C) The data collected are often at the household level
D) Brand switch for variety may be mistakenly inferred as switch due to substitutability
E) Observed brand switching could be due to different household members' preferences

Accepted Answer

Purchase data showing what consumers actually do provide direct insights into their behavior, unlike hypothetical scenarios or intentions, making it a valuable source for understanding product form and category competition.

Question 18

If a cross-elasticity with respect to price is positive, then the two brands or products in question are considered to be
A) Competitive
B) National brands
C) Home brands
D) Accommodative
E) Monopolistic

Accepted Answer

When the cross-elasticity of demand with respect to price is positive, it indicates that as the price of one product increases, the demand for another product also increases, suggesting that the two products are substitutes for each other, hence competitive.

Question 19

This approach of estimating competition from customer judgments, asks customers to take a large set of products and divide them into groups of items that can be substituted for one another and then to judge the similarity of the products in each group.
A) Judged overall similarity
B) Similarity within consideration sets
C) Product deletion sets
D) Substitution in use sets
E) Perceptual mapping

Accepted Answer

This approach is known as "Similarity within consideration sets" because it involves customers grouping products based on their substitutability and then assessing the similarity within each group. This method focuses on understanding how consumers perceive the substitutability of different products within their consideration set.

Question 20

The usefulness of the consideration set concept is limited because of all of the following reasons, EXCEPT:
A) Due to sets changing from one purchase occasion to another
B) By variability across customers
C) By variability across distribution channels
D) By the fact that such sets are dynamic over time
E) Because of the static nature of these sets

Accepted Answer

The consideration set concept is not limited by the static nature of these sets; in fact, consideration sets are dynamic and change over time, which is acknowledged in the reasons that do limit their usefulness (A and D). Variability across customers (B) and distribution channels (C) also presents challenges, making the static nature (E) the exception, as it does not limit the usefulness of the concept.

Quiz 2: Defining the Competitive Set

This is the broadest view of competition.

This view of competition considers all products and services competing for the same customer dollar as forming a market.

Budget competition

Web-based _____ seek(s) to bundle disparate services that fulfill a customer's needs for a particular transaction.

Travelmate is an online travel solutions website. Its most direct competitors are travel agents. This site also offers links to financing, insurance and other services bringing in competitors from other categories. Travelmate can be BEST considered as a(n)

At the product form competitive level, the product manager must convince customers that the _____ is / are better than others in the product form.

Identify the level of competition where the product management task involves convincing customers that their product category is the best way to satisfy needs.

At the _____ level of competition, the product manager must convince customers that the generic benefits are the best way to spend their discretionary income.

Generic competition is most critical when

As a firm moves from product form to budget competition

The managerial judgment approach, to assessing the set of competitors is most likely to use all of the following to develop judgments about the sources of present and future competition, EXCEPT

Identify the two alternative approaches to assessing the set of competitors.

External sources of information, such as commercial data services and the Standard Industrial Classification code used by the U. S. government, define competition based on

The use of predefined categories for defining competitive sets, provided by commercial data services and / or the US government, could completely overlook

A key source of purchase data used in consumer packaged goods applications is data collected from

Identify the INCORRECT statement pertaining to electronic scanners "reading" UPC codes at the point-of-purchase.

All of the following are problems with using purchase data to understand product form and category competition EXCEPT that

If a cross-elasticity with respect to price is positive, then the two brands or products in question are considered to be

This approach of estimating competition from customer judgments, asks customers to take a large set of products and divide them into groups of items that can be substituted for one another and then to judge the similarity of the products in each group.

The usefulness of the consideration set concept is limited because of all of the following reasons, EXCEPT: