When a product's unique attributes provide value to customers, the firm is implementing:
an integrated cost leadership/differentiation strategy.
a differentiation strategy.
a single-product strategy.
a cost leadership strategy.
The ________ dimension of relationships with customers is particularly important for social networking sites such as Facebook and MySpace.
richness
reach
social
affiliation
A differentiation strategy can be effective in controlling the power of substitutes in an industry because:
customers have low switching costs.
a differentiating firm can always lower prices.
customers develop brand loyalty.
substitute products are lower quality.
A company pursuing the differentiation or focused differentiation strategy would tend to:
invest in easy-to-use manufacturing technologies.
have strong capabilities in basic research.
have efficient systems linking products with processes.
make effective use of economies of scale.
TQM is most helpful to firms following the ________ business strategy.
integrated cost-leadership/differentiation
cost-leadership
focused differentiation
focused cost-leadership
The term "stuck in the middle":
indicates that the customers of an organization are willing to pay only a mid-range price for the product whatever the organization do to enhance the product.
indicates an organization that consistently adheres to a middle of the road strategy in the face of negative outcomes.
reflects the fact that the customers of the firm have only moderate expectations regarding product quality.
means that the cost structure is not low enough to allow it to attractively price products and that products are not differentiated enough for its target customer.
The use of a differentiation strategy would be expected to be LEAST effective in which of the following markets?
motion pictures
petrol
writing instruments
popular music
The three dimensions of a firm's relationships with customers include all the following EXCEPT:
richness.
exclusiveness.
affiliation.
reach.
Business-level strategies detail commitments and actions taken to provide value to customers and gain competitive advantage by exploiting core competencies in:
specific product markets.
primary value chain activities.
particular geographic locations.
the selection of industries in which the firm will compete.
By linking companies with their suppliers, distributors, and customers, ________ provide a company with flexibility.