According to the Value-Price-Cost Framework, Deploying a Differentiation Strategy Involves

question 79

Multiple Choice

According to the value-price-cost framework, deploying a differentiation strategy involves costs that might well exceed those of the average competitor, but with a successful differentiation strategy, that disadvantage is more than made up for by

• A)a rise in the perceived value of the differentiated good, giving the differentiator a clear competitive advantage over the average rival.
• B)a rise in the price of the differentiated good, giving the differentiator a clear value advantage over the average rival.
• C)no change in the price of the differentiated good, giving the differentiator a clear value advantage over the average rival.
• D)no change in the perceived value of the differentiated good, giving the differentiator a clear competitive advantage over the average rival.
• E)a drop in the price of the differentiated good, giving the differentiator a clear competitive advantage over the average rival.

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Definitions:

Market System

In this economic framework, the determination of investment, production, and distribution is influenced by the market signals emanating from the interplay of supply and demand.

Economic System

The mechanism or set of processes by which a society organizes and distributes its resources, goods, and services.

Factors Of Production

The four economic resources: land, labor, capital, and entrepreneurial ability.

Economic Systems

The structure and methods by which a society allocates resources and distributes goods and services among its population.