Description
Strategic Management And Competitive Advantage 5th Edition By Barney – Test Bank
Strategic Management and Competitive Advantage, 5e (Barney)
Chapter 5 Product Differentiation
1) Wal-Mart exemplifies a firm pursuing a product-differentiation strategy while Victoria’s Secret exemplifies a firm pursuing a cost-leadership strategy.
Answer: FALSE
Diff: 1
Learning Obj.: 5.1: Define Product Differentiation
AACSB: Application of Knowledge
2) 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.
Answer: TRUE
Diff: 1
Learning Obj.: 5.1: Define Product Differentiation
AACSB: Analytical Thinking
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.
Answer: FALSE
Diff: 2
Learning Obj.: 5.1: Define Product Differentiation
AACSB: Analytical Thinking
4) 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.
Answer: TRUE
Diff: 2
Learning Obj.: 5.1: Define Product Differentiation
AACSB: Analytical Thinking
5) 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.
Answer: TRUE
Diff: 2
Learning Obj.: 5.1: Define Product Differentiation
AACSB: Analytical Thinking
6) 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.
Answer: FALSE
Diff: 3
Learning Obj.: 5.2: Describe 11 Bases of Product Differentiation and How They can be Grouped into Three Categories
AACSB: Analytical Thinking
7) Chryslers’ introduction of the “cab forward” design was an attempt at differentiation through product features.
Answer: TRUE
Diff: 3
Learning Obj.: 5.2: Describe 11 Bases of Product Differentiation and How They can be grouped into Three Categories
AACSB: Application of Knowledge
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