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DealingwithCompetition习题及答案详解.pdf
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DealingwithCompetition习题及答案详解.pdf
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Chapter 11: Dealing with Competition
GENERAL CONCEPT QUESTIONS
Multiple Choice
1. Michael Porter has identified five forces that determine the intrinsic long-run
attractiveness of a market or market segment. Which of the following would NOT be
among Porter’s five forces?
a. Industry competitors
b. Technological partners
c. Substitutes
d. Buyers
e. Potential entrants
Answer: b Page: 342 Level of difficulty: Medium
2. Which of the following would be the most likely threat that is associated with
potential new entrants in Porter’s segment structural attractiveness model?
a. Threat of positioning
b. Threat of response
c. Threat of delayed action
d. Threat of role reversal
e. Threat of mobility
Answer: e Page: 342 Level of difficulty: Hard
3. A segment is unattractive when there are actual or potential ________ for the product.
a. contenders
b. competitors
c. substitutes
d. unclear demand
e. profit fluctuation
Answer: c Page: 343 Level of difficulty: Medium
4. Wal-Mart is perhaps one of the best illustrations of the threat of ________ found in
Porter’s model.
a. intense segment rivalry
b. new entrants
c. substitute products
d. buyers’ growing bargaining power
e. suppliers’ growing bargaining power
Answer: d Page: 343 Level of difficulty: Hard
5. A segment is unattractive if the company’s suppliers are able to raise prices or reduce
quantity supplied. Which of the following is the best illustration of the threat of
suppliers’ growing bargaining power?
a. Wal-Mart has almost no competitors in its market space.
b. Oil companies must purchase a significant amount of their product from OPEC.
c. McDonald’s is the largest fast food franchise and is still growing.
d. The U.S. Post Office has merged package operations with FedEx.
e. Sears unsuccessfully attempted to compete with Wal-Mart and Kmart.
Answer: b Page: 343 Level of difficulty: Hard
6. A(n) ________ is a group of firms that offer a product or class of products that are
close substitutes for one another.
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a. industry
b. cartel
c. cooperative
d. monopoly
e. demand field
Answer: a Page: 344 Level of difficulty: Easy
7. When only one firm provides a certain product or service in a certain country or area
a ________ exists.
a. duopoly
b. monopoly
c. oligopoly
d. monopolistic competition
e. pure competition
Answer: b Page: 344 Level of difficulty: Easy
8. Which of the following would be the best illustration of a pure oligopoly?
a. Autos
b. Cameras
c. Steel
d. Pharmaceuticals
e. High fashion clothing
Answer: c Page: 344 Level of difficulty: Hard
9. Which of the following is often considered to be a good illustration an industry
structure type known as pure competition?
a. Oil
b. Plastics
c. Pharmaceuticals
d. High fashion clothing
e. Stock market
Answer: e Page: 344 Level of difficulty: Medium
10. All of the following are considered to be major entry barriers in markets EXCEPT
________.
a. high capital requirements
b. economies of scale
c. patents and licensing requirements
d. product or service line
e. reputation requirements
Answer: d Page: 345 Level of difficulty: Medium
11. If a marketer is facing government restrictions, high vertical integration, emotional
barriers, low asset-salvage value due to obsolescence, and legal obligations to
creditors, the marketer is most likely facing what are called ________ barriers in a
marketplace.
a. exit
b. entrance
c. competitive
d. virtual
e. contrived
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Answer: a Page: 345 Level of difficulty: Medium
12. Major oil producers carry on oil exploration, oil drilling, oil refining, chemical
manufacture, and service-station operation. When an organization does all of these
separate tasks within a distribution channel they can be said to have achieved what is
called ________.
a. vertical integration
b. horizontal integration
c. concentric integration
d. parallel marketing
e. conglomerate marketing
Answer: a Page: 346 Level of difficulty: Medium
13. Using the market approach, ________ are companies that satisfy the same customer
need.
a. partners
b. competitors
c. entrepreneurs
d. innovators
e. followers
Answer: b Page: 346 Level of difficulty: Easy
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14. A group of firms following the same strategy in a given target market is called
________.
a. cartel
b. cabal
c. cooperative
d. informal alliance
e. strategic group
Answer: e Page: 347 Level of difficulty: Easy
15. An example of a strategic group in the appliance industry would be one where
________.
a. there was a large franchised dealer system
b. a common promotional theme used
c. competitors had broad lines, medium manufacturing costs, low service
responsibility, and low prices
d. multinational operations are mandated
e. a value orientation rather than a cost orientation
Answer: c Page: 347 Level of difficulty: Medium
16. Once a company has identified its main competitors and their strategies, it must next
ask: ________?
a. What are the competitors’ objectives
b. What are the competitive brand attributes
c. What are the competitive promotion schemes
d. What is the attrition rate in the market
e. What are the subtle market entrance requirements
Answer: a Page: 347 Level of difficulty: Hard
17. In general, a company should monitor the following variables when analyzing
competitors: ________, share of mind, and share of market.
a. share of demand
b. share of profits
c. share of promotion
d. share of universe
e. share of heart
Answer: e Page: 348 Level of difficulty: Medium
18. ________ is the percentage of customers who named the competitor in responding to
the statement, “Name the company from which you would prefer to buy the product.”
a. Share of market
b. Share of mind
c. Share of heart
d. Share of competitive space
e. Share of psychological field
Answer: c Page: 348 Level of difficulty: Medium
19. Most companies aim their competitive shots at ________ competitors, because this
requires fewer resources per share point gained.
a. strong
b. weak
c. distant
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d. “good”
e. unacknowledged
Answer: b Page: 348 Level of difficulty: Easy
20. ________ competitors try to buy market share rather than earn it; take large risks;
invest in overcapacity; and upset industrial equilibrium.
a. “Bad”
b. “Good”
c. Distant
d. Close
e. Strong
Answer: a Page: 349 Level of difficulty: Hard
21. In general, a market leader will have about ________ of the total market in relation to
other competitors.
a. 60 percent
b. 50 percent
c. 40 percent
d. 30 percent
e. 75 percent
Answer: c Page: 349 Level of difficulty: Medium
22. The market nicher serves small market segments not being served by larger firms.
Nichers account for about ________ of the market in relation to other competitors.
a. 30 percent
b. 25 percent
c. 20 percent
d. 15 percent
e. 10 percent
Answer: e Page: 349 Level of difficulty: Hard
23. The aim of benchmarking is to copy or improve on ________, either within an
industry or across industries.
a. profitability
b. manufacturing
c. ideation
d. aggressiveness
e. “best practices”
Answer: e Page: 349 Level of difficulty: Medium
24. Being a market leader is often a difficult position to maintain and defend. The market
leader must protect its current market share through good defensive and offensive
actions. Second, the firm can try to increase its market share, even if the market size
remains constant. What is the third course of action recommended for market leaders?
a. The firm must find be a cost leader.
b. The firm must find new, innovative technologies on a monthly basis.
c. The firm must strive to win promotional awards.
d. The firm must find ways to expand total market demand.
e. The firm must pursue markets others do not want.
Answer: d Page: 350 Level of difficulty: Medium
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