Question Details

A firm successfully implementing a differentiation strategy



1.	A firm successfully implementing a differentiation strategy would expect
a.	customers to be sensitive to price increases.
b.	to charge premium prices.
c.	customers to perceive the product as standard.
d.	to have high levels of power over suppliers.


	

	2.	The products or services that are differentiated from others have qualities that are
a.	perceived by the customer to add value for which they will pay a premium.
b.	valued by the typical industry customer.
c.	perceived as standardized by the customer.
d.	seen as classic attributes rather than passing fads.



3.	Blind taste-tests have shown that the taste of premium-priced vodkas and inexpensive vodkas are indistinguishable even to regular drinkers of vodka. But the sales of premium vodkas are thriving. This is an example of
a.	the perception of uniqueness being important to firms following the differentiation strategy.
b.	the importance of high-quality raw materials when using the differentiation strategy.
c.	the risk of product imitation by competitors.
d.	the danger counterfeiting holds for firms pursuing the differentiation strategy.



	4.	All of the following are examples of differentiated products EXCEPT
a.	Toyota- Prius gas-electric hybrid car.
b.	Tempur-Pedic mattresses.
c.	store brand beef and pork.
d.	Starbuck- coffee.

	

	5.	The use of a differentiation strategy would be expected to be LEAST effective in which of the following markets?
a.	Commodity goods
b.	Motion pictures
c.	Popular music
d.	Writing instruments





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