Exam (elaborations)
UWEC MGMT 449 Exam 2 questions n answers
- Course
- Institution
UWEC MGMT 449 Exam 2 questions n answers
[Show more]
Content preview
UWEC MGMT 449 Exam 2Cost Driver - correct answer ✔✔a factor that has a strong influence on a company's costs
Value Driver - correct answer ✔✔factor that can have a strong effect. particularly when creating
differentiation.
Low-Cost Provider - correct answer ✔✔Striving to achieve lower overall costs than rivals on products
that attract a broad spectrum of buyers
When does a Low-Cost Provider work best? - correct answer ✔✔1) Price competition among rival sellers
is vigorous.
2) Identical products are available from many sellers.
3) There are few ways to differentiate industry products.
4) Most buyers use the product in the same ways.
5_ Buyers incur low costs in switching among sellers.
Focused Low-Cost - correct answer ✔✔Concentrating on a narrow price-sensitive buyer segment and on
costs to offer a lower-priced product
Focused Differentiation - correct answer ✔✔Concentrating on a narrow buyer segment by meeting
specific tastes and requirements of niche members
Broad Differentiation - correct answer ✔✔Differentiating the firm's product offering from rivals' with
attributes that appeal to a broad spectrum of buyers.
When are differentiation approaches effective? - correct answer ✔✔Carefully study buyer needs and
behaviors, values and willingness to pay for a unique product or service.
Incorporate features that both appeal to buyers and create a sustainably distinctive product offering.
, Use higher prices to recoup differentiation costs.
Advantages of Differentiation - correct answer ✔✔Command premium prices for the firm's products
Increased unit sales due to attractive differentiation
Brand loyalty that bonds buyers to the firm's products
Best Cost Provider - correct answer ✔✔Giving customers more value for the money by offering upscale
product attributes at a lower cost than rivals.
When is a focused low cost/focused differentiation strategy best? - correct answer ✔✔The target market
niche is big enough to be profitable and offers good growth potential.
Industry leaders chose not to compete in the niche—focusers avoid competing against them.
It is costly or difficult for multi-segment firms to meet the specialized needs of niche buyers.
The industry has many niches and segments.
Rivals have little or no entry interest in the target segment.
Risks of Focused Differentiation or Focused Low-Cost - correct answer ✔✔Rivals will find ways to match
the focused firm's capabilities in serving the target niche.
The specialized preferences and needs of niche members can shift over time toward the product
attributes desired by the majority of buyers.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BravelRadon. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75057 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now