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UWEC MGMT 449 Exam 2 questions n answers
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UWEC MGMT 449 Exam 2 questions n answers
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UWEC MGMT 449 Exam 2Cost Driver - correct answer ✔✔a factor that has a strong influence on a company's costs
Value Driver - correct answer ✔✔factor that can have a strong effect. particularly when creating
differentiation.
Low-Cost Provider - correct answer ✔✔Striving to achieve lower overall costs than rivals on products
that attract a broad spectrum of buyers
When does a Low-Cost Provider work best? - correct answer ✔✔1) Price competition among rival sellers
is vigorous.
2) Identical products are available from many sellers.
3) There are few ways to differentiate industry products.
4) Most buyers use the product in the same ways.
5_ Buyers incur low costs in switching among sellers.
Focused Low-Cost - correct answer ✔✔Concentrating on a narrow price-sensitive buyer segment and on
costs to offer a lower-priced product
Focused Differentiation - correct answer ✔✔Concentrating on a narrow buyer segment by meeting
specific tastes and requirements of niche members
Broad Differentiation - correct answer ✔✔Differentiating the firm's product offering from rivals' with
attributes that appeal to a broad spectrum of buyers.
When are differentiation approaches effective? - correct answer ✔✔Carefully study buyer needs and
behaviors, values and willingness to pay for a unique product or service.
Incorporate features that both appeal to buyers and create a sustainably distinctive product offering.
, Use higher prices to recoup differentiation costs.
Advantages of Differentiation - correct answer ✔✔Command premium prices for the firm's products
Increased unit sales due to attractive differentiation
Brand loyalty that bonds buyers to the firm's products
Best Cost Provider - correct answer ✔✔Giving customers more value for the money by offering upscale
product attributes at a lower cost than rivals.
When is a focused low cost/focused differentiation strategy best? - correct answer ✔✔The target market
niche is big enough to be profitable and offers good growth potential.
Industry leaders chose not to compete in the niche—focusers avoid competing against them.
It is costly or difficult for multi-segment firms to meet the specialized needs of niche buyers.
The industry has many niches and segments.
Rivals have little or no entry interest in the target segment.
Risks of Focused Differentiation or Focused Low-Cost - correct answer ✔✔Rivals will find ways to match
the focused firm's capabilities in serving the target niche.
The specialized preferences and needs of niche members can shift over time toward the product
attributes desired by the majority of buyers.
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