Organizations That Adopt a Differentiation Strategy

question 89

Multiple Choice

Organizations that adopt a differentiation strategy:

• A)Increase profit margins by keeping financial costs lower than those of competitors,while still maintaining price and quality at roughly the same level as competitors.
• B)Offer unique products or services for which buyers are willing to pay a premium price.
• C)Choose a small niche in the overall market and concentrate only on that niche market.
• D)Offer products and services to buyers at a discounted price in a quest to obtain buyers.

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Definitions:

Regulation

Rules or directives made and maintained by an authority to manage or govern behavior within its jurisdiction, typically aiming at ensuring fairness, safety, or standards.

Subrogation

The substitution of parties whereby the party substituted acquires the rights at law of the other party, usually by way of contractual arrangement.

Negligence

The failure to exercise the standard of care that a reasonably prudent person would have exercised in a similar situation, resulting in harm or damage.

Salvage

The right of the insurer to the property where the insured is compensated for the loss.