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1
One disadvantage of a differentiation strategy is that a brand's identification in the marketplace may become diluted through excessive product line extensions.
A)True
B)False
2
Differentiation requires a firm to create products and/or services that are unique and valued.
A)True
B)False
3
Mass customization requires manufacturers to make large quantities of unique products to keep costs low.
A)True
B)False
4
Differentiation is always a good strategy to pursue.
A)True
B)False
5
An overall low-cost position enables a firm to achieve above-average returns despite strong competition.
A)True
B)False
6
By improving brand image, customer service, and product features, a firm can achieve
A)market power.
B)recognizable branding.
C)differentiation.
D)customer loyalty.
7
Which of the following is a potential pitfall of a differentiation strategy?
A)Perceptions of differentiation may vary between buyers and sellers.
B)There is too low a price premium.
C)All rivals share a common input or raw material.
D)None of the above is a pitfall.
8
Which of the following is a potential pitfall of a focus strategy?
A)There is erosion of cost advantages within the narrow segment.
B)Focusers can become too focused to satisfy buyer needs.
C)Even product and service offerings that are highly focused are subject to competition from new entrants and from imitation.
D)All of the above are pitfalls of a focus strategy.
9
What can be defined as the total profits in an industry at all points along the industry's value chain?
A)profit maximizer
B)profit pool
C)revenue enhancer
D)profit outsourcing
10
A firm's achievement of similarity with competitors with respect to low cost, differentiation, or other strategic product characteristics is called
A)business process reengineering.
B)increased capacity utilization.
C)competitive parity.
D)benchmarking.





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