For a Differentiation Strategy to Be Considered Successful

question 54

Multiple Choice

For a differentiation strategy to be considered successful:

• A) The organization that is pursuing the differentiation must be highly innovative
• B) Customers must be willing to pay more for the uniqueness of a product or service than the firm paid to create that uniqueness
• C) Loss of sales cannot reduce the benefits from economies of scale
• D) The organization must invest heavily in differentiating its products

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Definitions:

Note Receivable

A written promise that a customer will pay a fixed amount of money with interest by a certain date.

Interest

The charge for borrowing money or the compensation for lending money, typically calculated as a percentage of the principal amount.

Note Receivable

A promissory note held by the lender, stating the money due to be paid back by the debtor.

Maturity

Maturity in finance refers to the date on which the principal or final payment of a loan, bond, or other financial instrument is due to be paid in full.