1) Toyota customers have a wide range of preferences. Some prefer the fuel economy of a hybrid (Prius), some prefer a family van (Odyssey), and others may prefer a large SUV (Highlander). This is an example of :

	a.	differences in willingness to pay
	b.	horizontal differentiation
	c.	segmentation
	d.	vertical differentiation
	e.	mass customization

2) An organization-wide reliance on innovation and entrepreneurship within established firms is called

		corporate entrepreneurship.
		process innovation.
		innovative entrepreneurship.
		organizational innovation.

3) Faced with limited growth opportunities in their mature home markets, large European banks have responded by

selling off assets.

closing marginal that they own.

pursuing profitable niches within their home countries.

expanding into other countries.

4) Competitive advantage refers to:

	a.	All of the answers are correct.
	b.	occurs when a firms range of activities (i.e., production, finance, marketing, logistics, etc.) act in harmony as a set of integrated choices.
	c.	refers to how a firm does something unique to create added value.
	d.	refers to intra-industry competition.