Competition and Competitive Advantages Quiz
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Questions and Answers

What is an example of indirect competition?

  • McDonald’s vs. Burger King
  • McDonald’s vs. Pizza Express (correct)
  • 7-Eleven vs. a restaurant
  • 7-Eleven vs. Circle K

Which of the following is a non-sustainable competitive advantage?

  • Lower Production Costs (correct)
  • Unique Selling Propositions (USP)
  • Servicing a Niche Market
  • Creating Customer Loyalty

What is a sustainable competitive advantage?

  • An advantage that is easy for competitors to take away
  • An advantage that can be maintained over competitors long-term (correct)
  • An advantage that is short-term and easily lost
  • An advantage based on creating customer loyalty

Which of the following is an example of a sustainable competitive advantage?

<p>A company targeting a specific niche market (D)</p> Signup and view all the answers

What is a unique selling proposition (USP)?

<p>Developing a benefit that the competition does NOT have (D)</p> Signup and view all the answers

What is an example of a sustainable competitive advantage?

<p>Using cost-efficient, high-technology manufacturing systems (C)</p> Signup and view all the answers

What is one way to develop customer loyalty?

<p>Having a very strong customer service department (A)</p> Signup and view all the answers

Which is a non-sustainable competitive advantage?

<p>Highlighting the benefits that distinguish a product from the competition (D)</p> Signup and view all the answers

What is an example of non-sustainable competitive advantage related to placement?

<p>Exclusive distribution in a market (D)</p> Signup and view all the answers

What is a non-sustainable competitive advantage related to quality?

<p>Adding features to improve the product (A)</p> Signup and view all the answers

Which is a non-sustainable competitive advantage related to benefits of use?

<p>Highlighting the benefits that distinguish a product from the competition (C)</p> Signup and view all the answers

What is a non-sustainable competitive advantage related to price?

<p>Being less expensive than a competitor’s product (D)</p> Signup and view all the answers

What is a non-sustainable competitive advantage related to design features?

<p>Influencing the way a product looks and what it does (B)</p> Signup and view all the answers

What is the major goal of promotion as a non-sustainable competitive advantage?

<p>To aim for top-of-the-mind awareness (B)</p> Signup and view all the answers

What is the marketing goal for some companies related to placement as a non-sustainable competitive advantage?

<p>To eliminate the competition (A)</p> Signup and view all the answers

What is the value of a product in relation to benefits of use as a non-sustainable competitive advantage?

<p>In what the product will do for the person who buys it (B)</p> Signup and view all the answers

Flashcards

Indirect Competition

When products or services that aren't exactly the same compete for the same customer's attention, like different types of entertainment.

Sustainable Competitive Advantage

A long-term benefit that sets a company apart from its rivals, often due to unique resources or abilities.

Unique Selling Proposition (USP)

What makes a product stand out, highlighting its special features or benefits to attract a specific group of customers.

Customer Loyalty Development

Building strong relationships with customers through excellent service, rewards, and communication that meets their needs.

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Non-Sustainable Competitive Advantage

A temporary benefit that competitors can quickly copy, leading to a short-term edge.

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Placement Strategies

Securing prime shelf space or promotional displays to attract attention, but this advantage can be lost to competitors.

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Promotion Goals

The main goal of promotion is to raise awareness and generate short-term interest or demand in a crowded market.

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Quality Improvements

Improving the quality of a product, but competitors can quickly match these improvements, making them non-sustainable.

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Price Reductions

Lowering prices to attract customers, but this can be unsustainable due to profit margin loss.

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Design Features

Unique design features that can be copied by competitors quickly, leading to a short-lived competitive advantage.

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Value Related to Benefits of Use

Focusing on quick benefits to customers, often leading to quick sales but not long-term loyalty.

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Benefits of Use

The value of a product based on the advantages or enjoyment it offers to consumers.

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Customer Loyalty

The enduring preference and repeated purchases of customers, signifying a strong relationship with a company.

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Repeat Customers

Customers who make multiple purchases from a company, indicating satisfaction and loyalty.

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Engaging Communication

Communication that actively connects with customers, addressing their needs and building relationships.

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Study Notes

Competition Types

  • Indirect competition arises from products or services that are not the same but serve a similar purpose, such as different types of entertainment options competing for consumer attention.

Competitive Advantages

  • A sustainable competitive advantage provides a long-term benefit to a company, allowing it to maintain superiority over competitors through unique resources or capabilities.
  • Examples of sustainable competitive advantages include strong brand reputation, patented technology, or exclusive supplier relationships.

Unique Selling Proposition (USP)

  • A Unique Selling Proposition (USP) differentiates a product by emphasizing its unique features or benefits, making it appealing to a specific target market.

Customer Loyalty Development

  • Customer loyalty can be developed through exceptional customer service, rewarding repeat customers, and engaging communication that meets their needs.

Non-Sustainable Competitive Advantages

  • Non-sustainable competitive advantages are temporary benefits that can be easily replicated by competitors. Examples include:
    • Placement strategies that rely on seasonal promotions rather than consistent retailer relationships.
    • Quality improvements that can be matched by competitors quickly.
    • Price reductions that are not sustainable long-term due to potential profit margin erosion.
    • Design features that can be copied, offering only a brief edge until others replicate.

Promotion Goals

  • The major goal of promotion as a non-sustainable competitive advantage is to create awareness and generate short-term interest or demand in a crowded market.
  • Companies may aim to secure prime shelf space or promotional displays, which can provide temporary visibility but can be lost to competitors.
  • The value of a product in relation to benefits of use as a non-sustainable competitive advantage focuses on short-term benefits appealing to consumers, often leading to quick sales rather than enduring loyalty.

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Student Competition.pptx.pptx

Description

Test your knowledge on competition and competitive advantages with this quiz. Learn to differentiate between direct and indirect competitors, and identify types of competitive advantages. Explore real examples and plan for sustainable and non-sustainable advantages for a new product. Master the concepts to excel in the competitive business world.

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