The Typical Risks of a Differentiation Strategy Do NOT Include

question 97

Multiple Choice

The typical risks of a differentiation strategy do NOT include which of the following?

• A) Customers may find the price differential between the low-cost product and the differentiated product too large.
• B) Customers' experience with other products may narrow customers' perception of the value of a product's differentiated features.
• C) Counterfeit goods are widely available and acceptable to customers.
• D) Suppliers of raw materials erode the firm's profit margin with price increases.

---

Definitions:

Listed Company

A company whose shares are traded on a public stock exchange, allowing investors to buy and sell shares.

Retail Industry

The sector of the economy that is composed of individuals and companies engaged in the selling of finished products to end-user consumers.

Non-executive Directors

Board members who are not part of the company's day-to-day operations but are responsible for oversight and strategic guidance.

Chief Financial Officer

A senior executive responsible for managing the financial actions of a company, including financial planning, risk management, and financial reporting.