Competitive Advantage and Purchasing Criteria Quiz

Priya owns a small bakery in a busy neighborhood. She notices that her bakery attracts more customers than others nearby because she offers unique pastries and excellent customer service. Which of the following best defines what gives Priya's bakery an edge over the competition?

• The ability to produce goods at the lowest cost

• The leverage a business has over its competitors

• The number of products a business can offer

• The amount of profit a business makes

Answer explanation

Priya's bakery stands out due to its unique pastries and excellent service, giving it leverage over competitors. This advantage helps attract more customers, defining its edge in the market.

Emma is choosing a supplier for her business. She considers several key purchasing criteria. Which of the following is NOT listed as a key purchasing criterion?

• Price

• Timeliness

• Advertising

• Quality

Answer explanation

Emma's key purchasing criteria include price, timeliness, and quality. Advertising is not a key purchasing criterion, as it relates more to marketing than to the actual purchasing decision.

Eesha is comparing different suppliers for her company’s new product line. She knows that some features are absolutely necessary for a supplier to even be considered. In this context, what does "Order qualifier" refer to?

• The characteristic that wins the order

• Non-negotiable characteristics

• The lowest price available

• The fastest delivery time

Answer explanation

In supplier selection, 'Order qualifiers' are the essential, non-negotiable characteristics that a supplier must meet to be considered. Thus, the correct answer is 'Non-negotiable characteristics'.

Addison is the CEO of a company and wants to improve its competitive advantage in the market. Which strategy would best help Addison achieve this?

• Offering clients better and greater value than competitors

• Reducing the number of product options

• Increasing the price of all products

• Ignoring customer feedback

Answer explanation

Offering clients better and greater value than competitors is the most effective strategy for improving competitive advantage, as it directly addresses customer needs and differentiates the company from its rivals.

Grace is shopping for a new phone. One phone is delivered faster, while another is cheaper. According to the key purchasing criteria, which two factors is Grace considering?

• Quality and Variety

• Price and Timeliness

• Order winner and Order qualifier

• Timeliness and Quality

Answer explanation

Grace is considering Price, as one phone is cheaper, and Timeliness, since one phone is delivered faster. These factors are crucial in her decision-making process.

Liam owns a coffee shop and wants his business to be chosen by customers over other nearby coffee shops. According to the material, which factor must Liam focus on?

• Order qualifier

• Order winner

• Price only

• Timeliness only

Answer explanation

Liam should focus on the 'order winner' factor, as it differentiates his coffee shop from competitors and attracts customers. While price and timeliness are important, they are not the primary factors that will make his shop the preferred choice.

Emma manages a manufacturing company and wants to focus on the "COST" competitive priority to stay ahead in the market. Which of the following should be her key focus?

• Minimizing product costs and waste; maximizing productivity

• Designing durable, defect-free products

• Maintaining reliable and speedy delivery services

• Utilizing general-purpose machinery and multi-skilled workers

Answer explanation

To focus on the 'COST' competitive priority, Emma should minimize product costs and waste while maximizing productivity. This approach directly aligns with cost leadership strategies, ensuring efficiency and lower expenses.

Emma manages an online store and wants to focus on the "DELIVERY" competitive priority to improve her business. What should be her main goal?

• Designing superior process design

• Maintaining reliable and speedy delivery services

• Maximizing productivity

• Utilizing adaptable product design

Answer explanation

To focus on the 'DELIVERY' competitive priority, Emma's main goal should be maintaining reliable and speedy delivery services. This directly enhances customer satisfaction and loyalty, crucial for her online store's success.

At a manufacturing company, Zoey is considering which competitive priority to focus on. She wants to utilize general-purpose machinery and hire multi-skilled workers to adapt quickly to changing customer needs. Which competitive priority is Zoey emphasizing?

• Cost

• Quality

• Flexibility

• Delivery

Answer explanation

Zoey is emphasizing flexibility by using general-purpose machinery and hiring multi-skilled workers, allowing her company to quickly adapt to changing customer needs.

Charlotte is starting a new company and wants to focus on designing durable, defect-free products and ensuring superior process design. Which competitive priority is Charlotte emphasizing?

• Cost

• Flexibility

• Delivery

• Quality

Answer explanation

Charlotte is emphasizing quality by focusing on designing durable, defect-free products and superior process design. This prioritization directly relates to ensuring high standards in product quality.