The Essence of a Broad Differentiation Strategy Is to

question 40

Multiple Choice

The essence of a broad differentiation strategy is to

• A)appeal to the high-end part of the market and concentrate on providing a top-of-the-line product to consumers.
• B)incorporate a greater number of differentiating features into its product/service than rivals.
• C)lower buyer switching costs.
• D)outspend rivals on advertising and promotion in order to inform and convince buyers of the value of its differentiating attributes.
• E)offer unique product attributes in ways that are valuable and appealing and that buyers consider the cost worth it.

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Definitions:

Direct Labor Time Variance

The difference between the estimated time for direct labor to complete a task and the actual time taken, indicating efficiency or productivity issues.

Rate

The price or fee for goods or services, or the ratio between two amounts showing the cost of one in terms of the other, often used in context with interest and exchange rates.

Hours

A measure of time typically used to quantify the duration of activities or operations.

Factory Overhead Cost Variance

The difference between the actual and budgeted indirect manufacturing costs.