Product differentiation focuses on the consumers' attention on one or more key benefits of a brand that make it better than other choices. 31. Combination Agency: A type of agency which combines segments that are normally separate. Some differentiation rules are a snap to remember and use. (C) efficiency of operation in stable, unchanging environments. Short organizational life cycles put more pressure on the organization to: (A) be mechanistic in its design. (C) They provide legitimacy to an organization. A special case of the horizontal transfer involves the transfer of DNA between chloroplast or mitochondrial and nuclear genomes. (B) domains. (D) the number of positions in each department. The three organizational parts of the _____ are those that create demand, produce product, and provide support. When many firms pursue this strategy in the same industry, it leads to industry consolidation (oligopoly or even monopoly). Chocolate is not "better" than lemon. Horizontal differentiation is when products are differentiated according to a specific feature. In any market, a quality hierarchy exists for a particular type of product that ranks products of one kind from a position of low quality to the highest quality product. Environments Physical environments such as the architecture and decor of a hotel. But, let's have a look at a slightly different set up. This has made it very important for businesses to make their customers understand what different they have to (C) technologies. Essentially, vertical differentiation is aimed at differentiating the product in order to move up the hierarchy toward higher quality and use the trait as a competitive advantage to sell the product. 46. 1. It is an essential marketing process that is of vital economic importance to a business. Horizontal, or lateral, gene transfer is generally defined as exchange of genetic information between contemporary organisms. After a time, if all goes well then the company will grow. Differentiation focus strategy is a hybrid of focus strategy and differentiation strategy. To meet the conflicting demands of efficiency and customization, organizations need to: (A) strategically choose one or the other. 42. (B) horizontal differentiation. The constant rule: This is simple. _____ is defined as the tools, techniques, and actions used by an organization to transform inputs into outputs. Product differentiation deals with making changes in the marketing mix of a product so as to differentiate it from whatever the competition is offering OR to offer a product which stands out in the market. 29. It basically sets one product apart from the rest and serves as the deciding factor in purchase decisions. B) serial production. (A) number of units produced (B) total assets (C) sales volume (D) total number of employees, 39. (A) simple structure (B) machine bureaucracy (C) professional bureaucracy (D) adhocracy. Horizontal differentiation is when products are differentiated according to a specific feature. (A) Complexity (B) Humility (C) Trust (D) Control, 26. (B) hybrid structure types. A combination agency will take two separate but related services and provide them both to customers. (A) environmental uncertainty and risk (B) strategic moves being incremental and precise (C) the decision process being goal-oriented and rational (D) the strategic process being constrained by the limitations of top managers, (B) strategic moves being incremental and precise, 50. In the context of horizontal differentiation, _____ refers to the particular grouping of activities performed by an individual. f (x) = 5 is a horizontal line with a slope of zero, and … This establishes a price hierarchy for a particular product from lower to higher costs. : The most famous horizontal e-commerce business is Amazon.com It sells books, furniture, food, grocery, apparel, toys, software, music, gadgets, and a whole lot more. An organization chart shows: (A) formal lines of authority and responsibility. (B) They do not influence organizational design. (A) Standardization (B) Formalization (C) Differentiation (D) Integration. (C) have broad cross-functional collaboration. (A) formal lines of authority and responsibility. The _____ of an organization includes economic factors, political considerations, ecological changes, sociocultural demands, and government regulation. However, only in a vertical market can a brand identify itself as a thought leader and specialist within a specific field. Unlike managers today, managers of the future will most likely: (A) have a narrow functional focus. According to the "Merriam-Webster's Dictionary," an oligopoly is a business environment where just a few players have great influence -- but not control -- over the market. 2. Horizontal differentiation can be linked to differentiation in colours (different colour versions for the same good), in styles (e.g. Cooperative relationships c. Horizontal integration d. Forward integration (C) the use of mass technology. (C) limited horizontal decentralization of decision making. (A) Mass technology is classified as the least complex. In the context of Mintzberg's structural configurations for organizations, an automobile plant with routinized operating tasks is most likely to use a(n) _____. (D) total profits earned by an organization in a particular financial year. Please join Knewton Content Developer Becky Moening in a conversation with Sharon North of St. Knewton Alta Answers Quizlet Calculus. Definition: Differentiation strategy, as the name suggests, is the strategy that aims to distinguish a product or service, from other similar products, offered by the competitors in the market.It entails development of a product or service, that is unique for the customers, in terms of product design, features, brand image, quality, or customer service. (C) adopt a tall organizational structure. (B) its fast responsiveness to individual employee ideas. (B) horizontal differentiation. D) unit production. (A) recognizing environmental opportunities and threats (B) adopting a flatter organizational structure (C) the strategic decision process becoming more politicized (D) the strategic process being constrained by the limitations of top managers, (C) the strategic decision process becoming more politicized. (A) Technology (B) Throughput (C) Environment (D) Complexity, 41. When a company starts off, the only employees may be just the founder and a part-time assistant. 60. Definition: Differentiation strategy, as the name suggests, is the strategy that aims to distinguish a product or service, from other similar products, offered by the competitors in the market.It entails development of a product or service, that is unique for the customers, in terms of product design, features, brand image, quality, or customer service. In many industries, the barrier to entry has dropped significantly in recent years. The company becomes more experienced and specialized at providing goods … According to Mintzberg's organizational structures, hospitals and universities are examples of a: (A) simple structure. The area an organization claims for itself with respect to how it fits into its relevant environments is known as its _____. A typical example is the ice-cream offered in different tastes. Research and development cooperation between microelectronic firms is a form of horizontal strategic alliance. As the level of centralization increases in an organization, the probability of _____ also increases. The firm has a downward sloping demand curve because of product differentiation. 52. 63) High vertical differentiation, low horizontal differentiation, and low formalization are characteristics of an organization that indulges in _____. A company may decide to acquire companies in the same industry producing/providing the same product/service or acquire companies that become part of the entire production process. 48. (C) limited horizontal decentralization of decision making. Horizontal transfer is distinct from vertical transfer by which genetic information is passed from parent to offspring. The differentiation enables a company to achieve a competitive advantageCompetitive AdvantageA competitive advantage is an attribute that enables a company to outperform its competitors. When many firms pursue this strategy in the same industry, it leads to industry consolidation (oligopoly or even monopoly). Firms like Mafatlal, National Textile Corporation, etc have opened up retails stores owned by them, in order to have an effective control over distribution activities. Product Differentiation Types & Factors. A successful differentiation campaign boosts sales for a company by a significant margin and gives it a competitive advantage in the market as to why they deserve a consumer’s investment more than the others. Horizontal and vertical distribution are opposite business models. (D) be both flexible and efficient. Horizontal Differentiation. Identify a true statement about Woodward's classification schemes for technology. (A) logistics (B) finance (C) research and development (D) human resources, 24. (C) The basis of centralization has been changed. The machine bureaucracy emphasizes: (A) the support staff and mutual adjustment among people. (D) strong centralization of decision making in the upper echelon. (A) centralization (B) standardization (C) specialization (D) formalization, 22. The former is given when consumers base their purchasing decision on subjective preferences when comparing products, e.g. The purpose of horizontal integration (HI) is to grow the company in size, increase product differentiation, achieve economies of scale, reduce competition or access new markets. The _____ is a decentralized form of organization that emphasizes the expertise of the employees in the operating core of the organization. (A) the upper echelon losing power (B) the strategic decision process being initiated by lower-level managers (C) adopting a flatter organizational structure (D) the decision process being goal-oriented and rational, (D) the decision process being goal-oriented and rational, 51. The purpose of horizontal integration (HI) is to grow the company in size, increase product differentiation, achieve economies of scale, reduce competition or access new markets. (D) large-batch production. Horizontal Differentiation: Functional structure Most firms begin with no formal structure, but as they grow, split into functions reflecting the firm's value creation activities Horizontal Differentiation: Product divisional structure There are several ways to achieve product differentiation. A) mass production. (A) types of search procedures followed to find ways to respond to task exceptions. When a company efficiently differentiates its products, and a few essential products stand out, it usually brings out brand loyalty on the consumer’s part. However, from a company's perspective, substitute products create a rivalry. Product differentiation is economically advantageous to a company. Contrary to horizontal integration, which is a consolidation of many firms that handle the same part of the production process, vertical integration is typified by one firm engaged in different parts of production (e.g., growing raw materials, manufacturing, transporting, marketing, and/or retailing). Vertical differentiation focuses on differentiation in a product based on quality. The strongest method of horizontal integration is through: (A) liaison roles. 21. (C) number of exceptions encountered in doing the tasks within a job. It is a strategy to sell a product in multiple markets. 66. What’s more, horizontal marketing often leads to much bigger, broader audiences. (B) circle organization. (C) The basis of centralization has been changed. (A) complexity (B) technology (C) environment (D) configuration, 45. The article that follows explains both vertical and horizontal integration processes and explains how they are different to one another. The different factors through which the process is implemented include: Products in the market are differentiated solely on the price factor. In a _____ personality-organization constellation, people are suspicious of each other, hence distrust in working relationships may interfere with effective communication and task accomplishment. (B) integrators. • Vertical integration provides a greater level of control over the entire production process and can, therefore, result in lower cost and wastage. 33. A temporary set of organizations designed to come together swiftly to exploit an apparent market opportunity is called a: (A) cellular organization. E.g. Vertical Strategic Alliances . With remote access, it can spur a negative interaction between transportation rate and taste for quality: customers who have higher taste for remote access face a lower transportation rate. The following are common examples of service differentiation. (B) avoid formalization. Consumer behavior reveals how to appeal to people with different habits, Value proposition is a promise of value stated by a company that summarizes the benefit(s) of the company’s product or service and how they are delivered, Certified Banking & Credit Analyst (CBCA)®, Capital Markets & Securities Analyst (CMSA)®, Financial Modeling & Valuation Analyst (FMVA)™, Financial Modeling & Valuation Analyst (FMVA)®. _____ is the design process of linking tasks together to form an organizational structure that supports goal accomplishment. Horizontal differentiation seeks to affect an individuals subjective decision making, that is the difference cannot be measured in an objective way. The consumer believes that the company’s other products are as good and stand out just as much as the ones they use. Integration strategy is used … 61. 49. (B) degree of interrelatedness of an organization's various technological elements. This is common among larger companies; the larger a company grows, the more differentiated it tends to become. When products are different according to features that can't be ordered in an objective way, a horizontal differentiation emerges in the market. Products, in this case, are differentiated by form, shape, feature, function, color, customization, durability, quality, services, etc. So, from horizontal product differentiation let's now look at vertical product differentiation and see what that does to profits of firms and to, of course, price cost margins of firms. An alternative to vertical integration that enables companies to obtain differentiation and cost-savings without having to deal with the problems and costs associated with vertical integration is called: a. Uncooperative relationships b. 12. B) serial production. (B) the expertise of the professionals in the operating core of the organization. (D) strictly adhere to boss-employee relationships. (C) virtual organization. She knows that if she is going to be successful, she needs to reach out to those who would be most interested in her products. (D) Unit technology is large-batch manufacturing technology. This is in contrast … As the level of formalization increases in an organization, the probability of _____ also increases. 7 tips on product differentiation is explained _____ is the degree of differentiation between organizational subunits and is based on employees' specialized knowledge, education, or training. Horizontal organizations can be the epitome of “too many cooks in the kitchen" since everyone has equality with his colleagues. The _____ of organizational structure is a loosely coupled, composite structural configuration composed of units, each of which may have its own structural configuration. The constant rule: This is simple. In the early 2000s, Canadian company Blackberry Ltd. stood out exceptionally through product differentiation. Service differentiation is the design and delivery of a service to have unique and valuable characteristics relative to other services in the market. Customer Service Fast, friendly and diligent customer service. Differential centrifugation (also known as differential velocity centrifugation) is a common procedure in biochemistry and cell biology, which is used to separate organelles and other sub-cellular particles based on their sedimentation rate.Although often applied in biological analysis, differential centrifugation is a general technique also suitable for crude purification of non … C) process production. The product differentiation process may be as simple as redesigning of packaging to introducing a brand new functional feature in a product. As a result, businesses may incur high marketing and promotional costs when competing, Join 350,600+ students who work for companies like Amazon, J.P. Morgan, and Ferrari, The 5 P's of Marketing – Product, Price, Promotion, Place, and People – are key marketing elements used to position a business strategically. (A) The hierarchy of authority has been heightened. 47. monopolistic competition is a type of oligopoly quizlet, Oligopoly Defined. (A) life cycle (B) liability (C) task identity (D) domain. Horizontal differentiation. The paranoid, the depressive, the dramatic, the compulsive, and the schizoid are: (A) matrix structure types. (B) process production. Because she loves to garden she decided that she could make a career out of her passion. (D) spatial differentiation. (A) Integration (B) Coordination (C) Differentiation (D) Charting, 14. Product differentiation is the process of identifying and communicating the unique qualities of a brand compared to its competitors. A … In the context of Woodward's classification schemes for technology, custom shoemaking involves: (A) the use of unit technology. The _____ of an organization is most easily defined as anything outside the boundaries of that organization. In a monopolistically competitive market, firms can behave like monopolies in the … An (D) network organization. (A) professional bureaucracy (B) machine bureaucracy (C) divisionalized form (D) simple structure, 36. The demands placed on managers and on process capabilities in turn place demands on organizational: (A) structures. Product differentiation is economically advantageous to a company. There are three types of product differentiation: Horizontal differentiation: Distinctions in products that cannot be evaluated in terms of quality. The increased competition has divided the demand among different players in the market. Horizontal differentiation can be linked to differentiation in colours (different colour versions for the same good), in styles (e.g. (C) personality-organization constellations. The product or content is for everyone, or almost everyone, and is usually simple and easy to comprehend or use. It provides a reason for consumers as to why their product is worth investing in, as opposed to all the other substitute productsSubstitute ProductsSubstitute products offer consumers choices when making purchase decisions by providing equally good alternatives, thus increasing utility. 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