Risks of Following a Differentiation Strategy

question 8

Multiple Choice

Risks of following a differentiation strategy:

• A) Consumers may not be interested in the differentiation.
• B) If the price charged is so high that consumers perceive the difference as not worth paying, and it results in reduced brand loyalty.
• C) Buyers may decide that their need for a differentiated product has declined.
• D) Competitors may use cost advantage that results in consumers being faced with a viable substitute.

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Definitions:

Hard Work

The substantial effort and perseverance applied toward achieving goals, characterized by diligence and commitment.

Directs Behaviour

The influence or guidance on individuals' actions towards specific objectives or standards within a given context.

Keeps At It

Persistence and continued effort towards achieving a goal or completing a task.

Intrinsic Motivation

Motivation driven by internal rewards or satisfaction, where the activity itself is the primary reward.