Economics Revision Quiz Week 8

What is a competitive advantage?

• A disadvantage that places a firm in a worse position than its competitors.

• Anything that places a firm in a better position than its competitors.

• A strategy to increase employee satisfaction.

• A method to reduce production costs.

Which of the following is a source of competitive advantage?

• Cost leadership

• Employee training

• Market research

• Customer feedback

What is cost leadership?

• When firms can provide a product at a higher price than its competition.

• When firms can provide a product at a lower price than its competition.

• When firms focus on product differentiation.

• When firms increase their marketing budget.

What role do employees' income and cost of production play in cost leadership?

• They increase the overall cost of the product.

• They have no significant role.

• They play significant roles in keeping prices down.

• They help in product differentiation.

What is product differentiation?

• When a firm supplies products that are the same as its competitors.

• When a firm supplies products that are different/better than what its competitors can offer.

• When a firm reduces the cost of its products.

• When a firm focuses on employee satisfaction.

What role does successful marketing play in a firm's competitive advantage?

• It decreases the firm's competitive advantage.

• It has no effect on the firm's competitive advantage.

• It boosts the firm's competitive advantage.

• It makes the firm's products more expensive.

What can marketing convince people to do if done well?

• To avoid buying the product.

• To buy the product even if better options are available.

• To buy only the best available product.

• To ignore the product.

What does blended marketing refer to?

• A combination of online and offline strategies

• Only online strategies

• Only offline strategies

• A combination of social media and email marketing

What is one of the benefits of social media in marketing?

• It can only target a specific type of customer

• It allows consumers to learn more about the brand and their ideals

• It does not allow for persistent advertisements

• It presents inconsistent messages

Which of the following best describes Innovation?

• New ideas or new products, better ways to produce, new ways of organizing staff, and anything else that improves production into the future.

• The process of hiring new staff to improve company performance.

• The method of reducing costs by cutting down on production.

• The strategy of copying competitors' ideas to stay relevant.