Question 1

An organization that does not offer features that are unique enough to justify a higher price are thought to be pursuing a ___________________ strategy.

	robust
	best cost
	best quality
	stuck in the middle

Question 2

Firms pursuing a focused cost or differentiation strategy target _______________

	small to medium sized firms as potential customers
	profitable segments of competitor markets
	a narrow niche of potential customers
	a broad range of consumers

Question 3

Firms that choose to move further up the value chain for their industry are engaged in _______________

	forward vertical integration
	resource recovery strategies
	market seeking activities
	horizontal integration

Question 4

One of the major drawbacks for e-businesses is the difficulty in _______________

	establishing their brand
	controlling costs
	maintaining their website
	finding good IT help

Question 5

In situations where the strategic importance of a new activity is very important but unrelated to current operations, the appropriate corporate response would be to

	continue studying the situation
	sell the unit
	create a special business unit for the new activity
	contract out the development

Question 6

For a differentiation strategy to be effective, firms must persuade their customers to ______________________ in exchange for __________________

	pay more, a discount
	buy one, get one
	pay a premium price, gift with purchase
	pay a premium price, desirable features

Question 7

Firms that choose to move down the value chain for their industry are engaged in _______________

	profit seeking strategies
	horizontal integration
	backward vertical integration
	efficiency driven maneuvers

Question 8

E-business marketing differs from traditional marketing practices in that ____________________ communication can be supported.

	enhanced one-way
	two way
	written
	verbal

Question 9

An important difference between e-business and traditional business is in the ________________ of information on customer transactions that can be collected.

	spontaneity
	quality
	sporadic nature
	limited amount

Question 10

For e-businesses that sell standardized products and services, the more likely business strategy is that of _______________

	optimization
	cost leadership
	differentiation
	the middle way