Question 1

Timing-based product differentiation relies solely on being a first mover.

Accepted Answer

Timing-based product differentiation involves launching a product or service at a specific time when there is a gap or opportunity in the market. While being a first mover may provide an advantage, it is not the only factor for success. Factors such as product innovation, customer needs, and market demand also play a significant role in product differentiation.

Question 2

To the extent that differences in product complexity lead customers to conclude that the products of some firms are more valuable than the product of other firms,then product complexity can be a basis of product differentiation.

Accepted Answer

This statement is true as customers may perceive products that are more complex as being of higher value and therefore differentiate them from the products of other firms.

Question 3

Attempts to create differences in the relative perceived value of a firm's products or services are rarely made by altering the objective properties of those products or services.

Accepted Answer

Attempts to create differences in the relative perceived value of a firm's products or services often involve altering the objective properties of those products or services, such as improving quality, adding features, or innovating, as well as changing perceptions through branding and marketing.

Question 4

Through advertising and other consumer marketing efforts,firms attempt to alter the perceptions of current and potential customers,but only when specific attributes of a firm's products or services are altered.

Accepted Answer

Firms use advertising and consumer marketing efforts to alter perceptions of their products or services among current and potential customers, not only by changing specific attributes but also by influencing perceptions and attitudes towards existing features, brand image, and overall value proposition.

Question 5

A hedonic price is that part of a products' or services' actual price that is not attributable to a particular attribute of that product or service.

Accepted Answer

A hedonic price is actually the part of a product or service's price that is attributable to a particular attribute, such as quality, brand name, or location.

Question 6

Identify the three broad categories of product differentiation and identify two bases of differentiation under each category.

Accepted Answer

The answer of Identify the three broad categories of product...

Question 7

What is the relationship between product differentiation and managerial creativity?

Accepted Answer

The answer of What is the relationship between product differentiation...

Question 8

The physical location of a firm cannot be a source of product differentiation.

Accepted Answer

The physical location of a firm can be a source of product differentiation. For example, a restaurant located in a scenic area with a beautiful view may use this feature as a way to differentiate its dining experience from other restaurants. Similarly, a store located in a trendy or upscale neighborhood may use its location to appeal to a certain demographic of customers.

Question 9

Define product differentiation and discuss the role that customer perceptions play in product differentiation.

Accepted Answer

The answer of Define product differentiation and discuss the role...

Question 10

In the information technology business,interconnectivity is a relatively unimportant basis of potential product differentiation.

Accepted Answer

Interconnectivity is actually a very important basis of potential product differentiation in the IT business, as it allows for seamless integration and communication between different devices and systems.

Question 11

The ability to use organization structure to facilitate coordination among scientific disciplines to conduct research is known as architectural competence.

Accepted Answer

Architectural competence refers to the ability of an organization to design and implement a structure that allows for effective collaboration and coordination among different scientific disciplines in conducting research.

Question 12

Products can be differentiated by the extent to which they are customized for particular customer applications.

Accepted Answer

Products can indeed vary in their level of customization for specific customer needs. Some products may be mass-produced with little or no customization, while others may be specifically designed and built to meet the unique requirements of individual customers or applications. This can be particularly important in industries such as aerospace, defense, and medical devices, where high levels of precision and specialized features may be necessary to meet specific performance or safety requirements.

Question 13

Once developed,a firm's reputation can last a long time,even if the basis for that reputation no longer exists.

Accepted Answer

Once a firm's reputation is established, it can be difficult to change, even if the factors that initially contributed to the reputation have changed or are no longer present. This is because reputation is based on perceptions and beliefs, which can be slow to change.

Question 14

It is reasonable to expect that in the near future a marketing specialist will develop a definitive list of bases of product differentiation.

Accepted Answer

While marketing specialists can work to identify and promote specific points of differentiation for products, it is unlikely that there will ever be a definitive or complete list of all possible ways to differentiate products. New technologies, consumer preferences, and market trends will continue to evolve, creating new opportunities for differentiation.

Question 15

Bentley's introduction of a new 48-volt electric system in one of its high-end SUVs was an attempt at differentiation through product features.

Accepted Answer

Bentley's introduction of a new 48-volt electric system was a move to offer a unique product feature within the high-end SUV market, thus attempting differentiation.

Question 16

Differentiation can be based on explicit linkages between one firm's products and the products and services of other firms.

Accepted Answer

Differentiation can involve creating explicit linkages between a firm's products and the products or services of other firms, such as through co-branding or strategic alliances. This can help a firm stand out in the marketplace and offer unique value to customers.

Question 17

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

Accepted Answer

Product differentiation refers to the strategy of presenting a product as unique or distinct from its competitors in the eyes of the customer. Ultimately, it is the customer's perception of the product that determines whether or not differentiation has been achieved, regardless of any objective changes made by the firm.

Question 18

Product differentiation is ultimately an expression of the creativity of individuals and groups within firms and is limited only by the opportunities that exist,or that can be created,in a particular industry and by the willingness and ability of firms to creatively explore ways to take advantage of those opportunities.

Accepted Answer

Product differentiation is indeed a creative process that involves individuals and groups within firms coming up with innovative ways to stand out in their industry. The only limitations to this process are the opportunities available and the willingness of firms to explore them.

Question 19

If products or services are perceived as being different in a way that is valued by customers,even if there is no physical differentiation,then product differentiation exists.

Accepted Answer

Product differentiation can exist even without physical differentiation if customers perceive the product or service as being different in a way that they value. This can include differences in branding, packaging, marketing, perceived quality, customer service, or other factors.

Question 20

In general,firms selling differentiated products face a demand curve that is
A)upward sloping.
B)horizontal.
C)vertical.
D)downward sloping.

Accepted Answer

Firms selling differentiated products face downward sloping demand curve as they have some market power and consumers are willing to pay varying prices for the differentiated features of the product.

Quiz 5: Product Differentiation