Chapter 3

Question 1

What’s competitive advantage

Teacher said you need to know this

Answer 1

Is the strategic superiority off a firm over its competitors. A firm’s core competencies contribute to its competitive advantage that allows it to outperform competitors. Competitive advantage is not easily duplicated

Question 2

What’s core competencies

Teacher said you need to know this for test

Answer 2

A firm’s core competencies contribute to its competitive advantage that allows it to outperform competitors.

Question 3

Is competitive easily duplicated?

Answer 3

No

Question 4

What’s competitive priority

Teacher said you need to know this for test

Answer 4

Competitive priority is the strategic focus that a firm choose to achieve competitive advantage

Question 5

Order Qualifiers:

He said there is 1 test question on this

Answer 5

Basic performance expectations of customers.
Meeting or exceeding performance on an order qualifier is not a
competitive advantage.

Question 6

• Order Winners:

He said there is 1 test question on this

Answer 6

A performance characteristic that customers use to
differentiate the products and/or services of a firm from its
competitors.

Question 7

Search attributes

Answer 7

are the characteristics of a good or service
that a customer can determine prior to purchase.
Supermarket food, furniture, clothing, and automobiles are
high in search attributes.

Question 8

Examples of search attribute

Answer 8

• Examples of these attributes are color, price, freshness, style, fit
, feel, hardness, and smell.

Question 9

Experience attributes

Answer 9

are the characteristics that can be determined only after purchase or during consumption.

Question 10

Examples of Experience attributes

Answer 10

• Examples of these attributes are friendliness, taste, wearability,
safety, fun, and customer satisfaction.

Question 11

• Credence attributes

Answer 11

are any aspects of a good or service that
the customer must believe in, but cannot personally evaluate
even after purchase and consumption.

Question 12

Example of Credence Attributes

Answer 12

• Examples are the expertise of a surgeon or mechanic,

knowledge of a tax advisor, accuracy of tax preparation software , laser dental treatment

Question 13

Examples of High Services Content

Answer 13

Legal Services
Tooth Root Canal
Auto Repair
Medical Diagnosis
Estate Planning

Question 14

Example of High Goods Content

Answer 14

Clothing
Jewelry
Furniture
Houses
Automobiles

Question 15

Which one is difficult to evaluate
A. High Goods Content
B. High Services Content

Answer 15

A. High Service Content

Question 16

Which one is easy to evaluate
A. High Goods Content
B. High Services Content

Answer 16

B. High Goods Content

Question 17

Cost Leadership

Answer 17

– high volumes of standardized products by taking advantage of economies of scale and learning curve effects

Question 18

Differentiation

+ (4)

Answer 18

creating a unique product or service in terms of

• Quality
• Time
• Flexibility
• Innovation

Question 19

Focus Strategy –

Answer 19

focus on a niche market segment

Question 20

What are the 2 things that time consist of

Answer 20

speed and consistency

Question 21

Flexibility

Answer 21

Compete based - Dell example - Customization

Question 22

What are the 2 types of flexibility

Answer 22

1. Design flexibility

2. Volume flexibility

Question 23

What does design flexibility focus on

Answer 23

customization

Question 24

What is volume flexibility

Answer 24

capable of selling in high volume

Question 25

What is an external warranty

Answer 25

• Defect in the product
• For example, Mcdonalds got sued by the customer who had coffee spilt on her and won $2 million
• If you do it the first time you dont have to worry about the external warranty price

Question 26

What is hub and spoke model

Answer 26

The words “hub” and “spoke” create a pretty vivid image of how this system works. A hub is a central airport that flights are routed through, and spokes are the routes that planes take out of the hub airport. Most major airlines have multiple hubs. They claim that hubs allow them to offer more flights for passengers.

Question 27

Corporate Strategy

test question

Answer 27

Defines the businesses in which

the firm will participate

Question 28

Business Strategy

test question

Answer 28

Defines the market segments

and competitive priorities

Question 29

Operations Strategy

test question

Answer 29

Defines how to execute its business strategy.
It is how a firm’s processes are designed
to produce the type of goods and services
to support the firm’s business strategy

Question 30

What does the Hierarchy of Strategies include (3)

test question

Answer 30

1. Corporate Strategy
2. Business Strategy
3. Operations strategy

Question 31

____ is a core competency for a firm

test question

Answer 31

Operations

Question 32

Is hierarchy of strategies a top down or bottom up strategy?
(test question)

Answer 32

Top down