Question 1

In the bicycle industry,the feel of high-end bicycles when they are ridden is important.As a serious rider becomes accustomed to a particular bicycle,it is very difficult for that rider to switch to an alternative supplier.This is an example of product differentiation through which of the following?

Accepted Answer

Product customization involves tailoring a product to meet the specific needs or preferences of a particular group of consumers. In this case, the high-end bicycle industry is differentiating their products by offering specialized features that cater to serious riders who have become accustomed to a particular bicycle. This makes it difficult for these riders to switch to an alternative supplier.

Question 2

The most obvious way that firms can try to differentiate their products is by

Accepted Answer

D

Question 3

According to Coach's website, the company has built a distinctive style and prestigious image over the past 40 years to develop a reputation as "America's preeminent designer, producer, and marketer of fine accessories and gifts for women and men including handbags, business cases, luggage and travel accessories, wallets, outerwear, eyewear, gloves, scarves and fine jewelry." Coach employs a multi-channel distribution channel to reach its customers, including company-owned stores and boutiques in the stores of prominent specialty retailers both within the United States and abroad, and the company operates an online store. Consumers who purchase coach products are generally willing to pay the premium price due to the superior quality of Coach's products as well as the perceived prestige of owning a Coach product. Coach stresses these features in its advertising campaigns and regularly allows movies and television shows to favorably feature Coach products in appropriate scenes. Over the last five years. Coach has partnered with automobile manufacturers such as Lexus to produce automobiles with Coach interiors. In an effort to expand its international reach, Coach intends to increase its international distribution and is expanding into Japan through Coach Japan, Inc., a joint venture with a local company that will allow Coach to control international distribution and to maintain a consistent brand strategy domestically and abroad.
-Which generic business level strategy is Coach pursuing?

Accepted Answer

Coach is pursuing a product differentiation strategy by creating a distinctive style and prestigious image for its products, emphasizing the superior quality of its products, and focusing on the perceived prestige of owning a Coach product. This strategy allows Coach to charge a premium price and to appeal to consumers willing to pay for high-quality, prestigious products. Additionally, Coach's partnerships with automobile manufacturers and expansion into international markets demonstrate a commitment to maintaining a consistent brand strategy across different products and regions.

Question 4

A firm's ________ is really no more than a socially complex relationship between a firm and its customers and can serve as a basis for product differentiation.

Accepted Answer

A firm's reputation is a socially complex relationship between a firm and its customers that is built over time through various interactions and experiences. A positive reputation can serve as a basis for product differentiation, as customers may be more likely to choose a product from a company they trust and view favorably.

Question 5

Which of the following bases of product differentiation attempts to create the perception that a firm's products or services are unusually valuable by focusing on links within and between firms?

Accepted Answer

The answer of Which of the following bases of product...

Question 6

If an individual is considering purchasing a Toyota Camry or a Ferrari and decides that it is worth paying the extra money for the prestige that is associated with the Ferrari,the additional money the customer is willing to pay for the prestige is known as a(n)

Accepted Answer

Hedonic price refers to the extra amount a customer is willing to pay for the intangible benefits or emotional satisfaction associated with a product, such as prestige in the case of a Ferrari. The other options are incorrect as altruistic price refers to paying more to support a cause, fair market value is the price at which a product would sell in a competitive market, and margin price is the cost of producing an additional unit.

Question 7

While firms often alter the ________ of their products or services in order to implement a product-differentiation strategy,the existence of product differentiation,in the end,is always a matter of ________.

Accepted Answer

Product differentiation often involves changing the objective properties of products or services, but whether these changes lead to perceived differentiation ultimately depends on customer perception, not just the inherent properties themselves.

Question 8

Which of the following bases of product differentiation attempts to create the perception that a firm's products or services are unusually valuable by focusing directly on the attributes of the products or services a firm sells?

Accepted Answer

Product complexity is a base of product differentiation that focuses on the attributes of the products or services a firm sells, creating the perception that a firm's products or services are unusually valuable. This can be achieved through the use of advanced technology, unique features, or specialized knowledge, making it difficult for competitors to replicate the products. Choice B (product customization) focuses on tailoring products or services to meet the specific needs of individual customers, while choice C (consumer marketing) focuses on appealing to the emotions, needs, and desires of consumers. Choice D (reputation) is a base of product differentiation that emphasizes the brand image, quality, and reliability of a firm and its products or services.

Question 9

________ is a business strategy whereby firms attempt to gain a competitive advantage by increasing the perceived value of their products or services relative to the perceived value of other firms' products or services.

Accepted Answer

Product differentiation involves creating unique and appealing products or services that stand out from competitors and are perceived as more valuable. This can include branding, design, technology, features, and customer service. By offering something that others do not, firms can charge higher prices and gain a competitive advantage. Related diversification involves expanding into related industries to leverage existing capabilities and create synergies. Cost leadership involves competing on price by minimizing costs throughout the value chain. Best-cost provider aims to offer customers the best combination of price, quality, and features, balancing low cost with product differentiation.

Question 10

________ is the ability to use organizational structure to facilitate coordination among specific disciplines to conduct research.

Accepted Answer

The answer of ________ is the ability to use organizational...

Question 11

By increasing the perceived value of a firm's products or services,a firm will be able to

Accepted Answer

By increasing the perceived value of a firm's products or services, the customer is willing to pay a higher price for it as they perceive it to be of higher quality or usefulness. This means the firm can charge a higher price and still maintain demand due to the perceived value.

Question 12

According to Coach's website, the company has built a distinctive style and prestigious image over the past 40 years to develop a reputation as "America's preeminent designer, producer, and marketer of fine accessories and gifts for women and men including handbags, business cases, luggage and travel accessories, wallets, outerwear, eyewear, gloves, scarves and fine jewelry." Coach employs a multi-channel distribution channel to reach its customers, including company-owned stores and boutiques in the stores of prominent specialty retailers both within the United States and abroad, and the company operates an online store. Consumers who purchase coach products are generally willing to pay the premium price due to the superior quality of Coach's products as well as the perceived prestige of owning a Coach product. Coach stresses these features in its advertising campaigns and regularly allows movies and television shows to favorably feature Coach products in appropriate scenes. Over the last five years. Coach has partnered with automobile manufacturers such as Lexus to produce automobiles with Coach interiors. In an effort to expand its international reach, Coach intends to increase its international distribution and is expanding into Japan through Coach Japan, Inc., a joint venture with a local company that will allow Coach to control international distribution and to maintain a consistent brand strategy domestically and abroad.
-The price premium that customers are willing to pay for the superior quality and perceived prestige of Coach's products over the prices of similar products are known as

Accepted Answer

The price premium that customers are willing to pay because of the perceived prestige of owning a Coach product is known as a hedonic price. This term describes the emotional or psychological benefits that customers associate with owning and using a particular brand or product.

Question 13

The ability of companies that produce complex software packages to tailor these packages to the specific needs of their customers is an example of product differentiation through

Accepted Answer

Product customization refers to the ability of companies to tailor their products to meet the specific needs and preferences of their customers. This is a form of product differentiation that allows companies to stand out from their competitors by offering unique and personalized products. The ability to customize software packages is a common practice in the software industry, where companies offer different versions of their software with varying features and functionalities to meet the needs of different customer segments.

Question 14

According to Coach's website, the company has built a distinctive style and prestigious image over the past 40 years to develop a reputation as "America's preeminent designer, producer, and marketer of fine accessories and gifts for women and men including handbags, business cases, luggage and travel accessories, wallets, outerwear, eyewear, gloves, scarves and fine jewelry." Coach employs a multi-channel distribution channel to reach its customers, including company-owned stores and boutiques in the stores of prominent specialty retailers both within the United States and abroad, and the company operates an online store. Consumers who purchase coach products are generally willing to pay the premium price due to the superior quality of Coach's products as well as the perceived prestige of owning a Coach product. Coach stresses these features in its advertising campaigns and regularly allows movies and television shows to favorably feature Coach products in appropriate scenes. Over the last five years. Coach has partnered with automobile manufacturers such as Lexus to produce automobiles with Coach interiors. In an effort to expand its international reach, Coach intends to increase its international distribution and is expanding into Japan through Coach Japan, Inc., a joint venture with a local company that will allow Coach to control international distribution and to maintain a consistent brand strategy domestically and abroad.
-Which of the following bases of product differentiation does Coach appear to be employing?

Accepted Answer

Coach appears to be employing reputation, consumer marketing, and product features as bases of product differentiation. The company has developed a prestigious image and reputation as a producer of fine accessories and gifts for women and men, and this is emphasized in its advertising campaigns. Coach also highlights the superior quality of its products, which justifies the premium price. Additionally, Coach regularly allows movies and television shows to feature its products favorably, which further enhances its reputation and prestige.

Question 15

Product differentiation is a business strategy whereby firms attempt to gain a competitive advantage by increasing the perceived value of their products and services relative to the perceived value of other firms' products or services.

Accepted Answer

This statement accurately defines product differentiation as a business strategy.

Question 16

Through which bases of competitive advantage do firms attempt to alter the perceptions of current and potential customers,whether or not specific attributes of a firm's products or services are altered?

Accepted Answer

The answer of Through which bases of competitive advantage do...

Question 17

Warby Parker exemplifies a firm pursuing a product-differentiation strategy while Victoria's Secret exemplifies a firm pursuing a cost-leadership strategy.

Accepted Answer

This statement is incorrect. Warby Parker actually pursues a cost-leadership strategy by offering high-quality eyewear at an affordable price, while Victoria's Secret pursues a product-differentiation strategy by offering unique and exclusive lingerie designs.

Question 18

________ can be can be a source of product differentiation when a single set of customers purchases several of a firm's products.

Accepted Answer

Product mix, which is the combination of different products a firm offers, can be a source of product differentiation when a single set of customers purchases several of the firm's products. This allows the customers to see the compatibility and coherence of the product line, making them more likely to stick with the same brand for future purchases.

Question 19

Product differentiation is ultimately an expression of the ________ of individuals and groups within firms and is limited only by the ________ that exist,or that can be created,in a particular industry.

Accepted Answer

Product differentiation is a result of the creativity of individuals and groups within firms, as they seek to create unique features and attributes for their product. This differentiation is limited only by the opportunities that exist or can be created in a particular industry. Resources are important for developing and implementing product differentiation strategies, but creativity and opportunities play a more critical role in the process.

Question 20

Coach's agreement with Lexus to produce automobiles with Coach leather interior is an example of

Accepted Answer

Coach's agreement with Lexus to produce automobiles with Coach leather interior is a cooperative strategic alliance, which is a partnership between two or more firms to work toward shared goals and/or to share resources and capabilities. In this case, Coach and Lexus are leveraging each other's strengths to create a premium product that appeals to consumers who value luxury and quality.

Quiz 5: Product Differentiation