The Concept of Differentiation Parity Is Important in Low-Cost Leadership

question 67

Multiple Choice

The concept of differentiation parity is important in low-cost leadership.A cost leader can gain a competitive advantage when it has lower costs than the competition AND has achieved differentiation parity.What is differentiation parity?

• A) Creating value that is lower than the competition.
• B) Creating value that is higher than the competition.
• C) Creating the same value as the competition.
• D) Creating products that are highly differentiated relative to the competition.

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Definitions:

Linguistic Determinism

The theory that the structure of a language determines or greatly influences the modes of thought and behavioral characteristic of the culture in which it is spoken.

Eskimos' Vocabulary

A reference to the popular but debunked claim that Eskimo languages have an unusually large number of words for snow, illustrating linguistic relativity.

Linguistic Relativism

Theory suggesting that the language one speaks influences one's perception of reality and cognitive processes.

Bilingual

Characterizing someone who can fluently speak two languages.