31. Brand loyalty may be created by A) continuous advertising. B) superior customer service. C) product innovation achieved through company research and development D) emphasis on high product quality. E) all of the above. 32. Switching costs are the greatest when A) changing from one computer operating system to another. B) substitute products are available at a lower unit cost. C) when there are a large number of interchangeable products. D) products are commodity-like in nature. E) search costs for a substitute product are negligible. 33. Which of the following competitive forces comes from horizontal competition? A) Bargaining power of buyers B) Bargaining power of suppliers C) Threat of substitute products D) A and B E) All of the above 34. Common exit barriers include A) investments in specific assets. B) emotional attachments to an industry. C) high fixed costs associated with leaving the industry. D) bankruptcy regulations. E) all of the above. 35. In which of the following arenas would Wal-Mart’s Sam’s Club stores compete against their clos intense rivals e.g. Costco? A) The retailing sector B) The discount retailing industry C) The club-store discount retailing strategic group D) Sam’s Club stores face no close, intense rivals. E) Sam’s Club stores face close, intense rivals in every arena in which they compete. 36. Economies of scale may arise from A) cost reductions gained through mass production B) discounts on bulk purchases of raw material inputs and component parts. c) advantages gained by spreading production costs over a large production volume. D) cost savings associated with spreading marketing and advertising costs over a large vo E) all of the above. 37. Demand reaches total saturation in the stage of the industry life cycle. A) embryonic B) growth C) shakeout D) maturity E) decline 38. Suppliers in an industry are most powerful when A) there are few substitutes for the product suppliers sell. B) switching costs are low. C) companies in the industry can threaten to enter the suppliers industry. D) substitute products are readily available.