81) Rather than challenging head on, the challenger can make a(n) ________ on the competitor’s weaknesses or on gaps in the competitor’s market coverage.

A) bypass attack

B) frontal attack

C) indirect attack

D) guerrilla attack

E) pre-emptive attack

82) Which of the following conditions would enable higher market share to produce higher profits?

A) when unit costs drop as market share increases

B) when unit costs increase as market share increases

C) when production volume drops as market share increases

D) when production volume remains unaltered as market share increases

E) when the company fails to break-even

83) Cozy Country Market entered the candle business with a unique product: a line of candles made from soy that produce less smoke and lasts up to twice as long as other candles. The firm sold this unique product exclusively to a few niches. The candles were priced twice the cost charged for normal candles. The product was also sold online and in unconventional outlets not dominated by the market leaders. In this case, Cozy Country Market was using a(n) ________ against the market leaders.

A) pre-emptive attack

B) guerrilla attack

C) counter offensive attack

D) indirect attack

E) frontal attack

84) Which of the following statements is most likely true of market follower strategies?

A) Market followers have the resources to expand the market by developing new users, new uses, and more usage of its products.

B) Market followers must expand internationally first to ensure distribution effectiveness, cost savings, and quality control.

C) Market followers should conduct indirect attacks on competitor’s weaknesses to gain market share quickly and inexpensively.

D) Market followers benefit from pursuing subsegments of target markets due to their limited

resources.

E) Market followers must keep manufacturing costs and prices low or product quality and services high.

85) Almost every industry includes firms that specialize in serving target subsegments called market ________.

A) niches

B) mavens

C) baskets

D) indicators

E) mixes

86) Market niching is profitable because the company ________.

A) copies or improves on the leader’s products and programs, usually with much less investment

B) bears the cost of developing new products and markets, expanding distribution, and educating the market

C) knows the needs of the target customer segment better than other firms that casually attempt to sell to the same segment

D) either keeps its manufacturing costs and prices low or its product quality and services high

E) can achieve economies of scale much faster by selling the same product to the global market

87) Whereas the mass marketer achieves ________, the nicher achieves ________.

A) low margins; low volume

B) low volume; high margins

C) high volume; high margins

D) high volume; low margins

E) high margins; high volume

88) Computer mouse and interface device maker AdvTechPRO is only a fraction the size of software giant Terminal Time Softwares Inc. AdvTechPRO manufactures every variation of computer mouse imaginable (for left-handed people, wireless mice, shaped like actual mice, LED mice, etc.). Through skillful ________, the firm dominates the PC mouse market, with Terminal Time Softwares as its runner up.

A) centralization techniques

B) niching

C) brand imaging

D) vertical integration

E) benchmarking

89) Which of the following is most critical for successful niching?

A) catering to global markets

B) buzz marketing

C) follow-up

D) specialization

E) mass appeal of one idea

90) A market nicher can most likely specialize along all of the following EXCEPT ________.

A) specific end users

B) unique products

C) customized services

D) quality-price

E) mass marketing