MKT 475 Week 3 Quiz – Strayer



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Quiz 2 Chapter 2 and 3

Chapter 02

Markets and Competitive Space

True/False Questions
 

1. When modularization occurs, products become commodities.



2. The influence of competing brands becomes weaker with closer substitutability and more direct competition.



3. The product-variant product-market structure includes a broad group of products that satisfy a general, yet similar, need.


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4. Customer function considers the role or purpose of the good or service.




5. It is important to focus on the distributor of a product when defining the market, since the distributor drives demand for the product.




6. The value chain analysis considers the vertical network of firms involved in production.



7. A new competitor entering a market is likely to come from companies competing in other geographical regions with similar products.



8. Sales forecasts, typically, fall short of market potential.



9. In the initial stage of competition, the competitors concentrate on market share for end products and profits.



10. In the final phase of competition, companies involve in partnering with the objective of controlling industry standards.



Multiple Choice Questions
 

11. _____ refers to firms using simpler and less costly ways to match the value requirements offered by the products of incumbent firms serving the market.
A. Modularization
B. Commoditization of product designs
C. Disruptive innovation
D. Creating new market space



12. _____ changes products into commodities, making it difficult for companies to earn anything more than subsistence returns from those products.
A. Disruptive innovation
B. Modularization
C. Cannibalization
D. Segmentation


13. The purpose of _____ is to target new opportunities where buyers' value requirements are not being satisfied by existing products. 
A. disruptive innovation
B. commoditization of products
C. benchmarking
D. creating new market space


14. The _____ product-market includes a broad group of products that satisfy a larger common need.
A. generic
B. product-type
C. product-variant
D. larger-type


15. Which of the following is the first step in defining and analyzing product-markets?
A. Forecasting market size
B. Determining the boundaries of the market
C. Analyzing competition
D. Predicting rate of change of the market



16. Which of the following is the second step in analyzing product-markets? 
A. Analyze competition
B. Form the product-market
C. Forecast market size and rate of change
D. Analyze end users          



17. Which of the following is the final step in analyzing the competition?
A. Anticipating actions by competitors
B. Evaluating key competitors
C. Identifying and evaluating potential competitors
D. Identifying key competitors



18. Which of the following is the most direct type of competition?
A. Budget competition
B. Generic competition
C. Product-category competition
D. Product-variant competition



19. _____ analysis is horizontal and only covers similar types of firms and operating practices of the firms. 
A. Value chain
B. Industry
C. Market segmentation
D. Customer profile


20. According to Porter’s five competitive forces, _____ recognizes that active competition among industry members helps determine industry performance and it is the most direct and intense form of competition. 
A. rivalry among existing firms
B. threat of new entrants
C. threat of substitute products
D. bargaining power of suppliers



21. If critical inputs are in jeopardy or prices of those inputs are extraordinarily high, companies may pursue vertical integration strategies or develop collaborative relationships to reduce the:
A. rivalry among existing firms.
B. bargaining power of buyers.
C. threat of substitute products.
D. bargaining power of suppliers.



22. _____ is measured by comparing the share of the firm against the competitor with the highest market share in the segment.
A. Market segmentation
B. Relative market position
C. Product differentiation
D. Customer segment




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