A Company Attempting to Be Successful with a Broad Differentiation

question 104

Multiple Choice

A company attempting to be successful with a broad differentiation strategy has to

• A)study buyer needs and behavior carefully to learn what buyers consider important, what they think has value, and what they are willing to pay for.
• B)incorporate more differentiating features into its product/service than rivals.
• C)concentrate its differentiating efforts on marketing and advertising (where almost all differentiating features are created).
• D)over-differentiate so that product quality, features, or service levels exceed the needs of most buyers.
• E)concentrate on offering advanced features, whether or not they have value to the customers, to create unique products.

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Definitions:

Perfectly Price Discriminate

A pricing strategy where a seller charges the maximum possible price for each unit consumed that the buyer is willing to pay.

Output

Output refers to the total amount of goods and services produced by a company, industry, or economy within a given period.

Profit-Maximizing Price

The optimal selling price for a product or service that allows a company to achieve the highest possible profit.

Single Firm

A business or company that operates independently, not part of a larger conglomerate or group.