A Risk of the Differentiation Strategy Is That a Firm's

question 64

True/False

A risk of the differentiation strategy is that a firm's means of differentiation may cease to provide value for which customers are willing to pay.

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Definitions:

Variable Costs

Expenses that fluctuate in direct proportion to the volume of production or amount of output.

Fixed Costs

Expenses that do not change in total regardless of the level of production or sales activity, such as rent or salaries.

Variable Costs

Costs that vary directly with the level of production or sales volume.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.