The Differentiation Strategy Can Be Effective in Controlling the Power

question 123

Multiple Choice

The differentiation strategy can be effective in controlling the power of rivalry with existing competitors in an industry because:

• A) customers will seek out the lowest-cost product.
• B) customers of nondifferentiated products are sensitive to price increases.
• C) customers are loyal to brands that are differentiated in meaningful ways.
• D) the differentiation strategy benefits from rivalry because it forces the firm to innovate.

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Definitions:

Restore Equity

The process of adjusting the balance of fairness within an organization or relationship, often in response to perceived inequities.

Quantity of Work

The amount of work produced or completed within a certain timeframe.

Quality of Work

Quality of work refers to the degree to which a job or task is performed with excellence, accuracy, and thoroughness.

Benevolents

Individuals who are inclined to perform acts of kindness or charity.