Chapter 7 Customer Value-Driven Marketing Strategy: Creating Value for

Target Customers
4) ________ involves actually distinguishing the firm's market offering to create
superior customer value.
A) Mass customization
B) Differentiation
C) Market segmentation
D) Diversifying
E) Targeting

6) ________ consists of arranging for a market offering to occupy a clear,

distinctive, and desirable place relative to competing products in the minds of target
consumers.
A) Mass customization
B) Targeting
C) Segmentation
D) Differentiation
E) Positioning

134) ________ refers to how a company will create differentiated value for targeted
segments and what positions it wants to occupy in those segments.
A) Targeted marketing
B) Market segmentation
C) Product positioning
D) Value proposition
E) Niche marketing

135) A ________ refers to the way a product is defined by consumers on important

attributes—the place the product occupies in consumers' minds relative to competing
products.
A) core competency
B) value stream
C) value proposition
D) product position
E) product specification

137) To the extent that a company can differentiate and position itself as providing
superior customer value, it gains ________.
A) competitive advantage
B) complementary assets
C) service life
D) core competencies
E) contingent liability

138) Through ________ differentiation, brands can be differentiated on features,

performance, or style and design.
A) services
B) channel
C) people
D) product
E) price

155) Symbols such as the McDonald's golden arches, the colorful Google logo, the
Nike swoosh, or Apple's "bite mark" logo provide strong company or brand
recognition and are indicative of ________ differentiation.
A) people
B) image
C) channel
D) services
E) product

163) Firms that practice product differentiation gain competitive advantage through
the way they design their channel's coverage, expertise, and performance.
Answer: FALSE

140) Harvey's Bookstore is a popular online bookstore that has differentiated itself
through smooth-functioning delivery networks. This is an example of ________
differentiation.
A) product
B) image
C) price
D) channel
E) people

154) The Jay Group hires better employees than its competition by conducting
effective searches and multi-tiered interviews. The company also provides high
quality training to its employees, an aspect often neglected by competitors. The Jay
Group is most likely to gain a strong competitive advantage through which type of
differentiation?
A) image differentiation
B) people differentiation
C) services differentiation
D) product differentiation
E) channel differentiation

153) Apex describes its clothing line as, "Elegance and attitude, now as one. For the
daily office-goer, who takes pride in what he or she wears everyday, Apex makes
sure you get noticed." This exemplifies a ________.
A) statement of purpose
B) vision statement
C) positioning statement
D) general need description
E) product specification

136) ________ show(s) consumer perceptions of a company's brands versus

competing products on important buying dimensions.
A) Differentiation
B) Positioning
C) Market targeting
D) Perceptual positioning maps
E) Market segmentation

87) Which of the following is the reason a company may choose not to focus on the
largest, fastest-growing segments?
A) The smaller segments may be more profitable to the firm.
B) It may lack the skills to serve larger segments.
C) The right size and growth characteristics don't match its goals.
D) The segments may be too competitive.
E) It may lack the physical and financial resources to serve larger segments.

151) "To busy multitaskers who need help remembering things, Evernote is a digital
content management application that makes it easy to capture and remember
moments and ideas from your everyday life using your computer, phone, tablet, and
the Web." This is an example of a(n) ________.
A) positioning statement
B) statement of purpose
C) order-routine specification
D) vision statement
E) product specification

152) Chronos Inc. designs and markets different brands of cycling watches. Each
brand has a single unique feature: the Chronos Cosmos has a heart rate monitor, the
Chronos Acumen is designed for older cyclists who prefer a large display, and the
Chronos Aegis has a GPS function. Which of the following is evident here?
A) channel differentiation
B) service differentiation
C) product differentiation
D) people differentiation
E) image differentiation

153) Apex describes its clothing line as, "Elegance and attitude, now as one. For the
daily office-goer, who takes pride in what he or she wears everyday, Apex makes
sure you get noticed." This exemplifies a ________.
A) statement of purpose
B) vision statement
C) positioning statement
D) general need description
E) product specification