Competitive Advantage with Product Differentiation Occurs When a Company

question 34

Multiple Choice

Competitive advantage with product differentiation occurs when a company

• A) creates competitive advantage by grouping customers on the basis of important differences in their needs.
• B) helps firms keep costs to a minimum.
• C) creates, makes, and sells a product in a way that better satisfies customer needs than its rivals.
• D) is focused on corporate-level strategy.
• E) allows its managers to ignore costs.

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Definitions:

Correlation

Mutual or reciprocal relationship between two variables such that systematic changes in the values of one variable are accompanied by systematic changes in the values of another variable.

Regression

Use of a relationship between two or more correlated variables to predict values of one variable from values of other variables.

Measuring

The act of determining the size, quantity, or degree of something using standard units or tools.

Linear Regression Equation

Mathematical equation that predicts a score on one variable from a score on another variable based on the relationship between two variables.