The Inherent Goal of Product Differentiation Is to Make the Demand

question 30

Multiple Choice

The inherent goal of product differentiation is to make the demand curve for a product more inelastic. This happens because increased differentiation:

• A) reduces the number of perceived substitutes for a product.
• B) makes the product more expensive than its competitors.
• C) increases the quality of the product, making it worth the expense.
• D) reduces the time and effort required to obtain the product.
• E) increases the just noticeable differences among competing products.

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Definitions:

State-Dependent Memory

The phenomenon where an individual's ability to recall information is enhanced when they are in the same state of consciousness as when the memory was formed.

Recall

The mental process of retrieving information from memory without the aid of explicit cues.

Drinking Spree

A sustained period of excessive alcohol consumption.

Context-Dependent Memory

The phenomenon where people remember information better if they attempt to recall it in the same context in which they learned it.