Question

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 risk of product imitation by competitors.
	b.	the danger counterfeiting holds for firms pursuing the differentiation strategy.
	c.	the perception of perceived prestige and status as a means of differentiating a product.
	d.	the importance of high-quality raw materials when using the differentiation strategy.

1 points

Age structure, geographic distribution, income distribution, interest rates, and process innovations are all elements of concern when studying the demographic segment of the general environment.

True

False

Firms should never outsource a primary activity because of the danger of the activity being imitated by rivals.

True

False

All of the following are considered generic business-level strategies EXCEPT

	a.	product diversification.
	b.	integrated cost leadership/differentiation.
	c.	cost leadership.
	d.	focused differentiation.

Firms implementing cost leadership strategies often sell no-frills standardized goods or services (but with competitive levels of differentiation) to the industry's most typical customers.

True

False

The capabilities used to create the sustainability/green initiatives at Walmart and Target are ______ but less likely to be

	a.	valuable; causally ambiguous.
	b.	rare; valuable.
	c.	socially complex; rare.
	d.	valuable; rare.

Answer 1

c. the perception of perceived prestige and status as a means of differentiating a product. Correct option

True. Demographic Segmentation: Dividing the target market into smaller groups based on Age, Gender, income etc

True. Organizations should outsource non-core activities.

a. product diversification. Correct option

True.

d. valuable; rare. Correct option