The Typical Risks of a Differentiation Strategy Do NOT Include

question 97

Multiple Choice

The typical risks of a differentiation strategy do NOT include which of the following?

• A) Customers may find the price differential between the low-cost product and the differentiated product too large.
• B) Customers' experience with other products may narrow customers' perception of the value of a product's differentiated features.
• C) Counterfeit goods are widely available and acceptable to customers.
• D) Suppliers of raw materials erode the firm's profit margin with price increases.

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Definitions:

Positive Reinforcement

A technique used in behavioral psychology to increase the likelihood of a desired behavior by rewarding it.

Stimulus Discrimination

The learned ability to differentiate between similar stimuli and respond appropriately to each.

Stimulus Generalization

The process by which a response that has been learned to one stimulus is elicited by a different, but similar, stimulus.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of rest, without any further conditioning.