Chapter 5

Question 1

product differentiation

Answer 1

intended to increase the perceived value of the focal firm’s products and/or services relative to the value of competitors products and/or services

Question 2

3 categories of bases of differentiation

Answer 2

product attributes
firm-customer relationships
firm linkages

Question 3

product attributes

Answer 3

exploiting the actual product; features, complexity, timing of intro, location

Question 4

firm-customer relationships

Answer 4

exploiting relationships with customers; customization, consumer marketing, reputation

Question 5

firm linkages

Answer 5

exploiting relationships within the firm and/or relationships with other firm; linkages among firm’s functions, with other firms, product mix, service & support

Question 6

product differentiation strategies must meet ______ to create competitive advantage

Answer 6

the VRIO criteria

Question 7

exploiting mature industry opportunities

Answer 7

refining product or adding services

Question 8

exploiting declining industry opportunities

Answer 8

exploiting niches

Question 9

exploiting fragmented industry opportunities

Answer 9

branding: commodity

Question 10

exploiting emerging industry opportunities

Answer 10

first mover advantages

Question 11

sources of costs of imitation

Answer 11

historical uniqueness
casual ambiguity
social complexity