A Broad Differentiation Strategy Improves Profitability When

question 46

Multiple Choice

A broad differentiation strategy improves profitability when

• A)it is focused on product innovation.
• B)differentiating enhances product performance and quality.
• C)the differentiating features appeal to sophisticated and prestigious buyers.
• D)the higher price the product commands exceeds the added costs of achieving the differentiation.
• E)the differentiator charges a price that is only fractionally higher than the industry's low-cost provider.

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Definitions:

Employer Contributions

Monetary amounts contributed by employers towards employee benefits like pension plans, health insurance, and other welfare schemes.

Employment Insurance

A government program designed to provide financial assistance to individuals who are unemployed through no fault of their own.

Workers' Compensation Insurance

Insurance that provides medical benefits and wage replacement to employees injured in the course of employment.

Compensation and Benefits Costs

The total expenses associated with the pay and advantages, like health insurance and retirement plans, provided to employees.