Q&A Hero

Q: Knowledge workers work with and produce information as a product.

Q: To minimize the threat of substitute products or services, some businesses will create switching costs. What is a switching cost? A.The price of the product or service is so high that a customer cannot afford to purchase another B.Once you leave the first business for a competitor, you lose you ability to switch back to the first business C.A non-refundable fine levied against the customer for switching to a competitor D.Costs that make customers reluctant to switch to another project or service supplier

Q: Which of the following statements is true with regards to switching costs? A.Switching costs are the financial costs of switching to a new product or service B.Switching costs are the financial and non-financial costs of switching to a new product or service C.Switching costs are start-up costs incurred when replacing old technology D.Switching costs are the financial costs incurred by the supplier to ensure that their current systems are operationally sound

Q: Ying Yang wished to upgrade her current home communications system. She wanted to replace her current Internet, TV, and phone to a fiber optics system. As a buyer, which force discussed by Porter did Ying need to deal with most? A.Threat of new entrants B.Switching costs C.Entry barrier D.First-mover

Q: Which type of barrier creates an expectation for customers to be able to get the same features or services for a product or service from competitors? A.Switching B.First mover C.Entry D.Rivalry

Q: What is Local Number Portability (LNP)? A.The ability to move from cell tower to cell tower within a local area without losing phone connectivity B.Your ability to take your cell phone number with you to a new provider C.The ability to use your cell phone number on multiple cell phones D.The ability to connect cell phones via WiFi

Q: When is rivalry among existing competitors high in the Five Forces Model? A.When there are a large number of competitors in a market B.When there are a small number of competitors in a market C.When the competition in a market is fierce D.When the competition in a market is more complacent allowing some businesses to excel

Q: The authors discussed Michael Porter's three strategies to beating the competition in any industry. Which of the following is not one of those three approaches? A.Customer loyalty B.Overall cost leadership C.Focus D.Differentiation

Q: Which term is used to describe the offering of equal or better quality products or services at a lesser price than your competitors? A.Overall cost leadership B.Price differentiation C.Price separation D.Product differentiation

Q: What is a loss leader? A.A failing business leader in a competitive market B.A "first mover" in a emerging market C.A Competitor who is able to differentiate themselves from opposition D.A product that is sold at or below cost to entice customers into a store

Q: How can technology affect your cost leadership strategy? A.IT can tighten supply chain systems B.IT can capture and assimilate customer information C.IT can help analyze and predict customer behavior D.IT can help with all aspects of a business to reduce costs and analyze needed information

Q: Businesses typically act as both buyers and suppliers. Which of the following is true regarding the goal of your company as a buyer and as a supplier? A.You want to decrease your buyer power and supplier power B.You want to decrease your buyer power and increase your supplier power C.You want to increase your buyer power and decrease your supplier power D.You want to increase your buyer power and increase your supplier power

Q: Which of the following is not one of the five forces identified in Michael Porter's Five Forces Model? A.Buyer and supplier power B.Threat of substitutive products or service or the threat of new entrants C.Rivalry among existing competitors D.Financial power

Q: According to Porter, when there are many alternative products or services to the ones your business provides, the _____ is high. A.Threat of substitute products or services B.Buyer and supplier power C.Financial power D.Threat of increase products, services, and power amongst all players and finances