QUESTION Which of the following is a support activity in the operations of a firm? A. Research and development B. Customer service C. Marketing and sales D. Creation and maintenance of information systems E. Production ANSWER D
Date: September 3rd, 2020
QUESTION One of the reasons why a firm typically charges for a good or service less than the value placed on that good or service by the customer is because: A. the firm attempts to create value for the consumers by providing them a wide range of products. B. it is normally impossible to segment […]
Date: September 3rd, 2020
QUESTION Of all the value creation activities in a firm, which of the following creates value by discovering consumer needs and communicating them back to the R&D function of the company, which can then design products that better match those needs? A. Production B. Marketing and sales C. Human resources D. Logistics E. Information systems […]
Date: September 3rd, 2020
QUESTION The price that reflects an individual’s assessment of the value of a product is referred to as: A. the market price. B. the customer’s negotiated price. C. the base value of the product. D. the customer’s reservation price. E. the profit growth price. ANSWER D
Date: September 3rd, 2020
QUESTION Which of the following of a firm is measured by the difference between the value of a product to an average consumer and the average unit cost of producing that product? A. Customer surplus B. Value creation C. Cost curve D. Value efficiency E. Customer reservation ANSWER B
Date: September 3rd, 2020
QUESTION The value of a product to an average consumer is V, the average price that the firm can charge a consumer for that product is P, and the average unit cost of producing that product is C. For this scenario, which of the following is true? A. The firm makes a profit so long […]
Date: September 3rd, 2020
QUESTION According to Michael Porter, what are the two basic strategies for creating value and attaining a competitive advantage in an industry? A. Differentiation and low-cost B. Value creation and generalization C. One-size-fits-all and zero-sum D. Comparison and standardization E. Profitability and strategic fit ANSWER A
Date: September 3rd, 2020
QUESTION According to Michael Porter, superior profitability goes to a firm that: A. creates similar products as their competitors. B. keeps the gap between value and cost of production smaller than the gap attained by competitors. C. drives down the cost structure of its business. D. has the highest cost structure in the industry. E. […]
Date: September 3rd, 2020
QUESTION Focusing primarily on increasing the attractiveness of a product is referred to as a: A. standardization strategy. B. differentiation strategy. C. target-identification strategy. D. low-cost strategy. E. profitability strategy. ANSWER B
Date: September 3rd, 2020
QUESTION Superior value creation relative to rivals requires that the firm: A. creates similar products as its competitors so that consumers do not have to pay a premium price. B. has the highest cost structure in the industry. C. creates the least valuable product in the eyes of consumers. D. ensures that the gap between […]
Date: September 3rd, 2020
