A Route to Take in Developing a Differentiation Advantage Includes

question 87

Multiple Choice

A route to take in developing a differentiation advantage includes

• A)incorporating product attributes and user features that raise the buyer's overall costs, but keep the price minimal.
• B)incorporating tangible features that add functionality, and increase customer satisfaction with the product specifications, functions, and styling.
• C)signaling value by targeting sophisticated buyers.
• D)incorporating intangible features that enhance buyer satisfaction in economic ways.
• E)emphasizing high quality and performance of products through a standard and simple, no-fuss packaging.

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Definitions:

Deadweight Loss

A reduction in economic effectiveness that happens when a good or service fails to reach or cannot reach its equilibrium.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price.

Elastic

A characteristic of supply or demand that indicates a high sensitivity to changes in price.

Inelastic

Describes a situation where a change in price leads to a relatively small change in the quantity demanded or supplied.