Differentiation Addresses "How" a Firm Competes in Terms of the Way

question 10

True/False

Differentiation addresses "how" a firm competes in terms of the way in which it can offer uniqueness to its customers

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Definitions:

Price Sensitivity

The degree to which the price of a product affects consumers' buying behaviors or the demand for the product.

Substitution Risk

The potential loss or decrease in market share due to consumers opting for alternative products or services.

Cross Subsidy

A pricing strategy where the revenue or profits from one product or service are used to support another within the same company, often to gain competitive advantage.

High Margin

Refers to products or services that yield a significantly greater profit relative to their cost.