Which of the Following Is Regarding How a Differentiation Strategy

question 12

Multiple Choice

Which of the following is regarding how a differentiation strategy can help a firm to improve its competitive position vis-à-vis Porter's five forces?

• A) By increasing a firm's margins, it avoids the need for a low-cost position
• B) It helps a firm to deal with supplier power and reduces buyer power since buyers lack comparable alternatives
• C) Supplier power is increased because suppliers will be able to charge higher prices for their inputs
• D) Firms will enjoy high customer loyalty, thus experiencing less threat from substitutes than its competitors

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Definitions:

Matched-Pairs Sample

A study design where subjects are paired based on certain characteristics, and each pair is treated differently to study effects of a variable.

Interval Data

A type of numerical data where the distance between two points is meaningful, including temperatures and dates.

Matched Pairs

An experimental design method where pairs of subjects are matched based on certain criteria to control for confounding variables.

Normally Distributed

Describing a dataset whose distribution of values forms a bell-shaped curve, with most of the values clustering around a central mean value.