In Which of the Following Situations Is a Differentiation Strategy

question 37

Multiple Choice

In which of the following situations is a differentiation strategy used?

• A) The industry is fragmented into customer groups based on needs.
• B) Customer needs are primarily satisfied by the price of the product.
• C) A company's cost structure needs to be reduced.
• D) There is a demand for deep price discounts from powerful buyers.
• E) The industry is not allowed to charge a premium price for its products.

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Definitions:

Inventory

A list of supplies used regularly and the quantities in stock.

Periodic Supply

A method of inventory resupply that occurs at regular, predetermined intervals.

Prescription Pads

Preprinted forms used by doctors to write and authorize medication for patients.

Table Covers

Protective or decorative cloths used to cover tables, often enhancing aesthetics or protecting the table surface from damage and stains.