A Differentiation Strategy Enables a Business to Address the Five

question 64

Multiple Choice

A differentiation strategy enables a business to address the five competitive forces by

• A) having brand-loyal customers become more sensitive to prices.
• B) increasing economies of scale.
• C) providing protection against rivalry.
• D) serving a broader market segment.

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Definitions:

Sales Discounts

A promotional strategy where the seller reduces the price of products or services to attract more customers or encourage quick payment.

Sales Tax

A percentage of the selling price of goods and services, collected by sellers and remitted to the appropriate tax authority.

Liability Account

An accounting record that captures the amounts a company owes to others.

Gross Sales

represent the total sales revenue before any deductions are made for returns, allowances, or discounts.