Which of the Following Is Not an Appropriate Guideline for Developing

question 63

Multiple Choice

Which of the following is not an appropriate guideline for developing a strategic group map for a given industry?

• A)The variables chosen as axes for the map should indicate important differences among rival approaches.
• B)The variables chosen as axes for the map do not have to be either quantitative or continuous. They can be discrete variables.
• C)The variables chosen as axes for the map should be highly correlated.
• D)Several maps should be drawn if more than one pair of variables give different exposures to the competitive positioning relationships present in the industry structure.
• E)The sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group.

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Definitions:

Assurance

A positive declaration intended to give confidence; a promise.

Rule Of Reciprocity

A social norm where individuals feel obliged to return favors or kindness received from others.

Social Exchange Theory

The idea that interpersonal relationships are governed by perceptions of the rewards and costs exchanged in interactions.

Economic Model

A theoretical construct representing economic processes by a set of variables and a set of logical or quantitative relationships between them.