STR 581 Capstone Final Exam Part 3
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STR 581 Capstone Final Exam Part 3

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1. A(n) ________ market share of exactly 100 percent means that a company is tied for the market lead. A rise in relative market share means the company is gaining on its leading competitor. • potential • relative • served • overall 2. The typical risks of a cost leadership strategy include___________. • loss of customer loyalty • excessive differentiation to the point where the customer base is too small • the inability to balance high differentiation and low price • production and distribution processes becoming obsolete 3. The likelihood of entry of new competitors is affected by and ___________. • the power of existing suppliers; buyers • the profitability of the industry; the market share of its leading firm • barriers to entry; expected retaliation of current industry organizations • the demand for the product; the profitability of the competitors 4. In general, compared with firms which compete in only one market, among firms which face one another in multiple markets there is__________. • similar competitive rivalry • more competitive rivalry • less competitive rivalry • no competitive rivalry 5. The three parts of the external environment which affect a firm's strategic actions are__________. • economic, political, and legal • industry, business, and product • local, national, and global • general, industry, and competitor 6. The proper matching of what a firm can do with what a firm might do__________. • balances the internal characteristics of the firm with the characteristics of the external environment • overcomes the rigidity and inertia resulting from a history of success • develops core competencies based on human knowledge • yields insights the firm requires to select its strategy 7. Gordon Jones is considering purchasing a computer from Best Buy. He has created a scale for rating eight different computers on three different characteristics. He plans to make a short list of only those computers that score at least a 7 on his scale on all three characteristics. Which of the following choice heuristics has he chosen? • anchoring and adjustment heuristic • elimination-by-aspects heuristic • conjunctive heuristic • lexicographic heuristic 8. The term "conglomerates" refers to firms using the diversification strategy. • related constrained • related linked • global • unrelated 9. The goal of the organization's ________ is to point the firm in the direction of where it would like to be in the years to come. • strategy • mission • culture • vision 10. A company that seeks to increase its sales and profits through backward, forward, or horizontal integration within the industry is said to be employing a(n) ________ growth strategy. • target • diversification • intensive • integrative 11. Annual-plan control requires making sure the company isn't overspending to achieve sales goals. The key ratio to watch is ___________. • stock turnover • marketing expense-to-sales • cash flow return on investment • gross margin 12. The recent joint ventures formed by BP with Russian and Indian partners showed the importance of the ________ segment of the general environment that BP and other integrated oil firms have to manage when contending with scarce resources. • physical • demographic • global • political/legal 13. Many consumers are willing to pay $100 for a perfume that contains $10 worth of scent because the perfume is from a well-known brand. What kind of pricing is the company depending on? • image pricing • market-skimming pricing • target pricing • going-rate pricing 14. Hilton Hotels customizes rooms and lobbies according to location. Northeastern hotels are sleeker and more cosmopolitan. Southwestern hotels are more rustic. This is an example of ________ segmentation. • psychographic • geographic • demographic • behavioral 15. A group of college graduates decides to start a business. Though they are knowledgeable in various business domains, they are unable to arrive at a valuable business idea. They decide to search for ideas in a structured manner. They meet and start discussing everyone's ideas. Each idea is recorded and then the thoughts that come up in relation to the ideas are written down and discussed. This process helps them to finalize a business plan. What technique is used here? • mind mapping • attribute listing • forced relationship analysis • reverse assumption analysis 16. The Enron employee who reported the financial manipulations at the company to her superiors can be considered to have engaged in__________. • managerial opportunism • an act of courage • vindictive disloyalty • white-collar crime 17. The differentiation strategy can be effective in controlling the power of rivalry with existing competitors in an industry because__________. • customers are loyal to brands that are differentiated in meaningful ways • customers will seek out the lowest-cost product • the differentiation strategy benefits from rivalry because it forces the firm to innovate • customers of nondifferentiated products are sensitive to price increases 18. A well-known car manufacturing company introduces a new hatchback model by describing its distinctive features and then stressing the speed and safety qualities of the car. Which of the following is the company using to convey its membership in the hatchback segment? • relying on the product descriptor • using channel differentiation • announcing category benefits • comparing to exemplars 19. AT&T's business campaign not only helped to change public perceptions of the company, it also signaled to employees that AT&T was determined to be a leader in telecommunication services. Which principle of internal branding does this example portray? • bringing the brand alive for employees • linking internal and external marketing • choosing the right moment to capture employees' attention and imagination • furnishing energizing and informative internal communication 20. The strategic management process is__________. • the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness • a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment • a process directed by top-management with input from other stakeholders that seeks to achieve above- average returns for investors through effective use of the organization's resources • a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm 21. The first step in the social marketing planning process is ________. • designing the market offering • determining the focus of the program • setting objectives and goals • selecting the target audience 22. Moving into international markets is a particularly attractive strategy to firms whose domestic markets__________. • have too much regulation • demand a differentiation strategy for success • are limited in opportunities for growth • have developed unfriendly business attitudes toward the industry 23. Aisha is a marketing manager with Injoos, a company that manufactures packaged fruit juices. Knowing that several other companies exist in the market that offer similar products, Aisha decides to build a customer base from among those who prefer to avoid mass media and other targeted promotions. Which of the following marketing communications tools would be her best option to build a favorable impression among the prospective customers? • direct marketing • sales promotions • personal selling • public relations 24. Viewing the world through the customer's eyes and constantly seeking ways to create more value for the company enhances__________. • affiliation with the customer • the richness of the relationship with the customer • the ability to identify the customer • the reach of the company toward the customer 25. Backward integration occurs when a company_________. • produces its own inputs • is divesting unrelated businesses • is concentrated in a single industry • owns its own source of distribution of outputs 26. Successful implementation of the differentiation strategy requires a structure that___________. • focuses on the finance function • is dominated by the operations function • has specialized jobs. • decentralizes decision making 27. Which of the following can a company do to reduce defection • Distinguish the causes of customer attrition and identify those that can be managed better. • Increase customer lifetime value by increasing the non-monetary costs of products. • Enhance the growth potential of existing customers through cross-selling and upselling. • Attract new customers to try out the company's products. 28. Southwest Airlines offers a Rapid Rewards program that allows customers to count flights they have taken toward free future flights. This is an example of a(n) ________. • club membership program • cross-selling program • activity-based costing program • value delivery system 29. Organizational structure__________. • specifies the firm's formal reporting relationships, procedures, controls, and authority and decision-making processes • specifies the firm's formal value proposition, the markets it will serve, and how the firm will provide value in those markets • specifies the firm's control mechanisms, grievance procedures, reporting relationships, procedures, and authority over decision-making processes • specifies the firm's informal reporting relationships, procedures, controls, and authority and decision-making processes 30. ________ is a form of online word of mouth, or "word of mouse," that encourages consumers to pass along company-developed products and services or audio, video or written information to others online. • Viral marketing • Microsite marketing • Interstitial marketing • Guerrilla marketing

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