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.

---

Definitions:

Quitclaim Deed

A deed that transfers to the buyer only the interest that the seller may have in a property and that contains no warranties.

Warranties of Title

Legal guarantees provided by a seller to a buyer that the seller has the right to sell the property and that the property is free from any lien or encumbrance.

Subterranean Rights

Refers to the rights to use and exploit underground resources such as minerals, oil, and natural gas located beneath a property.

Fructus Industrials

Crops that are planted and harvested by human labor, such as wheat or corn.