The Essence of a Differentiation Strategy Is to ________

question 34

Multiple Choice

The essence of a differentiation strategy is to ________.

• A)target the most sophisticated segment of the market
• B)incorporate the greatest number of features into a product
• C)offer a unique product that supports a premium price
• D)outspend rivals on product advertising

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Definitions:

Functional Discounts

Price reductions given to intermediaries in the distribution chain for performing certain functions like storage, distribution, or sales efforts.

Price Discrimination

The practice of charging different prices to different customers for the same product or service, typically without a difference in cost.

Price Discrimination

The practice of selling the same product to different buyers at different prices, often based on market power.

Dominant Firm

A company that has a large share of the market and can influence market conditions and prices.