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When a Physical Product Cannot Easily Be Differentiated,the Key to Competitive

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Essay

When a physical product cannot easily be differentiated,the key to competitive success may lie in adding valued services and improving quality.Identify and discuss the six main service differentiators.


Definitions:

Present Value Factors

Mathematical factors used to calculate the present value of a future amount of money or stream of cash flows given a specified rate of return.

Yield 10%

Represents the annual return on an investment, expressed as a percentage of the investment's cost. Here, the investment is expected to return 10% annually.

Bond Interest Expense

The cost that an issuer of bonds incurs over the bond term as interest payments to bondholders, as dictated by the interest rate of the bond.

Floating-rate Debt

A form of borrowing where the interest rate varies over time with market conditions, opposed to fixed-rate debt.

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