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:

Embryonic Development

The process by which an embryo forms and develops, from the single-cell zygote stage to the establishment of body plan and organogenesis.

Hollow Ball

An early stage in embryonic development in many animals characterized by a spherical layer of cells surrounding a fluid-filled cavity.

Blastula

A preliminary phase in the development of embryos in animals, distinguished by a spherical formation made up of hollow cells.

Embryonic Development

The process by which an embryo forms and develops, starting from the fertilization of the egg to the fetus stage.