Which of the following is a distinct feature of a product/service differentiation competitive advantage?
a. Using government subsidies
b. Controlling overhead costs
c. Establishing a brand name
d. Obtaining inexpensive raw materials
ANSWER: c
A product/service differentiation competitive advantage exists when a firm provides something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition. Establishing a brand name is an example of a product/service differentiation competitive advantage.
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Trade allowances include all of the following, except:
A) off-invoice allowance B) exit fees C) trade shows D) slotting fees
Relative to the current year, the sales manager's proposal will ________.
Alvarez Company is facing an $8 increase in the variable costs of producing one of its products for the upcoming year. As a result, the sales manager has made a proposal to increase the sales price of the product while increasing the advertising budget at the same time. The sales price increase will lower sales volume, but the other changes may help the company maintain its profit margin. Alvarez has provided the following information regarding the current year results and the proposal made by the sales manager:
A) decrease operating income by $324,000
B) increase contribution margin by $196,000
C) decrease the unit breakeven point
D) decrease operating income by $196,000
Use the following information for Davis Company to compute inventory turnover for Year 2. Year 2Year 1Cost of goods sold279,500291,800Ending inventory47,70049,350
A. 11.77 B. 5.67 C. 5.89 D. 5.86 E. 5.76
When many men in the baby boomer segment started getting gray hair, they were reluctant to use hair dyes made for women even though they were just as eager as women to fight the aging process
To address this reluctance, hair care product manufacturers introduced hair dying systems for men to use on their head and their facial hair. The hair care product manufacturers used ________ segmentation to define their target markets. A) lifestyle B) behavioral C) socioeconomic D) demographic E) psychographic