A Differentiation Strategy Can Be Effective in Controlling the Power

question 58

Multiple Choice

A differentiation strategy can be effective in controlling the power of substitutes in an industry because:

• A) customers have low switching costs.
• B) substitute products are lower quality.
• C) a differentiating firm can always lower prices.
• D) customers develop brand loyalty.

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Definitions:

High Consensus

A situation where there is widespread agreement among members of a group or community.

Highly Consistent

Describing something that consistently follows a particular pattern, behavior, or outcome without significant variation.

Situational Factor

An external influence that affects an individual's behavior or decision-making process in a given context.

Noisy Environment

A setting or situation characterized by high levels of background sound that can interfere with communication or concentration.