Question 1

________ positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs.
A) More for the same
B) More for less
C) Same for less
D) Less for much less
E) More for more

Accepted Answer

More for more positioning involves offering the most high-end product or service and charging a premium price to cover the higher costs associated with offering superior quality. This approach targets customers who are willing to pay extra for quality and exclusivity.

Question 2

When it first opened stores across the United States, Bateman's, an office supply chain store, had the best product selection, the best service, and the lowest prices compared to other office supply chain stores. As a result, Bateman's captured a significant chunk of the market in the short run. Which of the following positioning strategies did Bateman's most likely use?
A) more for the same
B) more for less
C) same for less
D) less for much less
E) more for more

Accepted Answer

Bateman's used the positioning strategy of "more for less" as it offered the best product selection, service, and lowest prices compared to other office supply chain stores. This strategy aims to attract customers by offering more value for their money than competitors.

Question 3

While there may be many differences between brands, not all are meaningful or relevant to consumers. Which of the following is NOT a criterion for establishing the value of a difference to promote?
A) superior; the difference is superior to other ways that customers might obtain the same benefit
B) affordable; buyers can afford to pay the difference
C) profitable; the company can introduce the difference profitably
D) important; the difference delivers a highly valued benefit to target buyers
E) visually appealing; customers will be able to see and appreciate the difference

Accepted Answer

Visual appeal may be a factor in some industries or product categories, but it is not a criterion for establishing the value of a difference to promote. The other criteria listed (superior, affordable, profitable, important) are all essential for determining the value of a difference to promote.

Question 4

Which of the following is true with regard to the same for less value proposition?
A) Discount stores and "category killers" rarely use the same-for-less value proposition.
B) The same-for-less value proposition is mostly offered by marketers who sell higher quality upscale products or services.
C) The same-for-less value proposition cannot generate profits.
D) Offering the same for less can be a powerful value proposition because everyone likes a good deal.
E) The same-for-less positioning involves meeting consumers' lower performance or quality requirements at a much lower price.

Accepted Answer

Offering the same for less can be a powerful value proposition because everyone likes a good deal. Option A is incorrect as discount stores and "category killers" often use the same-for-less value proposition. Option B is incorrect as the same-for-less value proposition can be used by marketers selling products at different quality levels. Option C is incorrect as the same-for-less value proposition can generate profits if executed well. Option E is incorrect as the same-for-less positioning does not necessarily involve meeting lower performance or quality requirements.

Question 5

While Jenkins Stationeries was selling branded stationery at premium prices, Pembroke Stationeries, a store across the street, was selling the same branded stationery at discount prices. Which of the following value propositions best describes Pembroke's product positioning?
A) more for less
B) more for the same
C) same for less
D) less for much less
E) more for more

Accepted Answer

Pembroke Stationeries' product positioning can be described as "same for less" as they are offering the same branded stationery as Jenkins Stationeries but at a discounted price.

Question 6

________ positioning involves meeting consumers' lower performance or quality requirements at a much lower price.
A) More for less
B) Less for much less
C) Same for less
D) More for more
E) More for the same

Accepted Answer

The option of meeting lower performance or quality requirements at a much lower price is a classic example of a less for much less positioning strategy. This strategy involves offering products that have fewer features, poorer quality or lower performance at a significantly cheaper price point than competitors. This allows businesses to target price-sensitive consumers who are willing to sacrifice quality for a lower cost.

Question 7

Product differentiation refers to the way a product is defined by consumers on important attributes-the place the product occupies in consumers' minds relative to competing products.

Accepted Answer

Product differentiation refers to the process of distinguishing a product from others in the market, while the definition provided describes product positioning, which is about how a product is perceived in the consumer's mind relative to competitors.

Question 8

The winning value proposition would be to offer ________.
A) more for the same
B) more for less
C) more for more
D) same for less
E) same for more

Accepted Answer

Offering more for less is generally the most attractive value proposition for consumers. It implies that they are able to get better value for their money and can potentially save money in the process.

Question 9

Chronos Inc. designs and markets different brands of cycling watches. Each brand has a single unique feature: the Chronos Cosmos has a heart rate monitor, the Chronos Acumen is designed for older cyclists who prefer a large display, and the Chronos Aegis has a GPS function. Which of the following is evident here?
A) channel differentiation
B) service differentiation
C) product differentiation
D) people differentiation
E) image differentiation

Accepted Answer

The given scenario shows product differentiation, as each brand offers a unique feature that sets it apart from the other products in the market.

Question 10

Stores such as Walmart, Best Buy, PetSmart, David's Bridal, and DSW Shoes use ________ positioning.
A) more for the same
B) more for less
C) same for less
D) less for much less
E) more for more

Accepted Answer

These stores use the "same for less" positioning, meaning they offer the same quality products as their competitors but at a lower price point. This allows them to attract price-sensitive customers while still maintaining a level of quality that is similar or equal to their competitors.

Question 11

Symbols such as the McDonald's golden arches, the colorful Google logo, the Nike swoosh, or Apple's "bite mark" logo provide strong company or brand recognition and are indicative of ________ differentiation.
A) people
B) image
C) channel
D) services
E) product

Accepted Answer

These symbols are examples of image differentiation, where a company uses logos and branding to create a distinct image in the minds of consumers.

Question 12

Ferrari sports cars claim superior quality, performance, and style. Ferrari provides "perfection" at a premium price to keep its brand image intact. Which type of value proposition does Ferrari most likely position its products with?
A) more for the same
B) more for more
C) less for much less
D) the same for less
E) more for less

Accepted Answer

Ferrari positions its products with a "more for more" value proposition. It offers superior quality, performance, and style compared to other sports cars, but at a premium price. This communicates to customers that they are getting more value for their money by paying more for a Ferrari.

Question 13

"To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) ________.
A) positioning statement
B) statement of purpose
C) order-routine specification
D) vision statement
E) product specification

Accepted Answer

The statement describes the unique selling point of Evernote as a digital content management application for multitasking individuals who need help remembering things. This is an example of a positioning statement, which communicates how a product or service stands out in a crowded market.

Question 14

The full mix of benefits on which a brand is differentiated and positioned is known as the brand's ________.
A) value proposition
B) service life
C) value stream
D) supply chain
E) demand chain

Accepted Answer

The term "value proposition" refers to the unique mix of benefits that a brand offers to its target audience, which sets it apart from its competitors and influences consumer decision-making. This includes factors such as the product's features, quality, price, convenience, and emotional appeal, among others. The value proposition is a key element of the brand strategy and helps to define the brand's positioning in the market. Options B, C, D, and E are unrelated to the concept of value proposition.

Question 15

All of the following are ways a company can differentiate itself or its product EXCEPT ________.
A) services
B) channels
C) price
D) people
E) image

Accepted Answer

Price is not a sustainable way to differentiate a company or product, as competitors can quickly copy or undercut the price. The other options (services, channels, people, and image) are more effective ways to differentiate a company or product.

Question 16

Kinger Auto specializes in selling low-quality used vehicles that are priced a good deal lower than other used cars. Which of the following value propositions is evident here?
A) more for the same
B) more for less
C) same for less
D) less for much less
E) more for more

Accepted Answer

Kinger Auto offers low-quality used vehicles at significantly lower prices, indicating a "less for much less" value proposition.

Question 17

Apex describes its clothing line as, "Elegance and attitude, now as one. For the daily office-goer, who takes pride in what he or she wears everyday, Apex makes sure you get noticed." This exemplifies a ________.
A) statement of purpose
B) vision statement
C) positioning statement
D) general need description
E) product specification

Accepted Answer

The statement describes the position of Apex clothing in the market and how it wants to be perceived by its target audience. It highlights the combination of elegance and attitude in its clothing line and its aim to make the wearer stand out in the daily office environment. Thus, it is a positioning statement. A statement of purpose would describe the company's overall mission or reason for existence, a vision statement would describe the company's future goals, a general need description would be more broad and focused on consumer needs, and a product specification would detail specific features of a product.

Question 18

The Jay Group hires better employees than its competition by conducting effective searches and multi-tiered interviews. The company also provides high quality training to its employees, an aspect often neglected by competitors. The Jay Group is most likely to gain a strong competitive advantage through which type of differentiation?
A) image differentiation
B) people differentiation
C) services differentiation
D) product differentiation
E) channel differentiation

Accepted Answer

The Jay Group's advantage comes from hiring and training better employees, indicating a focus on people differentiation.

Question 19

Pierre's Mart, a grocery store in New Orleans, Louisiana, offers less merchandise selection and fairly low levels of service. Despite the lackluster service and limited selection of merchandise, customers still flock to Pierre's because it charges rock-bottom prices. Pierre's Mart most likely uses the ________ positioning.
A) more for the same
B) more for less
C) same for less
D) less for much less
E) more for more

Accepted Answer

Pierre's Mart offers less merchandise selection and low service levels but attracts customers with very low prices, fitting the "less for much less" positioning strategy.

Question 20

Which of the following states the product's membership in a category and then shows its point of difference from other members of the category?
A) a mission statement
B) a vision statement
C) a general need description
D) a positioning statement
E) an order-routine specification

Accepted Answer

A positioning statement explicitly states the product's membership in a category and then differentiates it from other members of the same category, often highlighting its unique benefits or features.

Quiz 7: Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

________ positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs.

While there may be many differences between brands, not all are meaningful or relevant to consumers. Which of the following is NOT a criterion for establishing the value of a difference to promote?

Which of the following is true with regard to the same for less value proposition?

While Jenkins Stationeries was selling branded stationery at premium prices, Pembroke Stationeries, a store across the street, was selling the same branded stationery at discount prices. Which of the following value propositions best describes Pembroke's product positioning?

________ positioning involves meeting consumers' lower performance or quality requirements at a much lower price.

Product differentiation refers to the way a product is defined by consumers on important attributes-the place the product occupies in consumers' minds relative to competing products.

The winning value proposition would be to offer ________.

Stores such as Walmart, Best Buy, PetSmart, David's Bridal, and DSW Shoes use ________ positioning.

Symbols such as the McDonald's golden arches, the colorful Google logo, the Nike swoosh, or Apple's "bite mark" logo provide strong company or brand recognition and are indicative of ________ differentiation.

Ferrari sports cars claim superior quality, performance, and style. Ferrari provides "perfection" at a premium price to keep its brand image intact. Which type of value proposition does Ferrari most likely position its products with?

"To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) ________.

The full mix of benefits on which a brand is differentiated and positioned is known as the brand's ________.

All of the following are ways a company can differentiate itself or its product EXCEPT ________.

Kinger Auto specializes in selling low-quality used vehicles that are priced a good deal lower than other used cars. Which of the following value propositions is evident here?

Apex describes its clothing line as, "Elegance and attitude, now as one. For the daily office-goer, who takes pride in what he or she wears everyday, Apex makes sure you get noticed." This exemplifies a ________.

Which of the following states the product's membership in a category and then shows its point of difference from other members of the category?