The _____________ Strategy Involves an Attempt to Distinguish the Organisation's

question 72

Multiple Choice

The _____________ strategy involves an attempt to distinguish the organisation's products or services from others in the industry.

• A) differentiation
• B) cost leadership
• C) focus
• D) focus cost leadership
• E) None of these choices.

---

Definitions:

Perfectly Price Discriminates

A pricing strategy where a seller charges the maximum possible price for each unit consumed that the buyer is willing to pay, capturing the entire surplus.

Consumer Surplus

The variance between the aggregate amount consumers intend and have the means to pay for a good or service and the sum they actually pay.

Consumer Surplus

The gap between what consumers are prepared and able to spend on a product or service and the actual amount they end up paying.

Perfect Price Discriminator

A theoretical entity that charges each consumer the maximum price they would be willing to pay for a good or service.