Whether a Broad Differentiation Strategy Ends Up Enhancing Company Profitability

question 14

Multiple Choice

Whether a broad differentiation strategy ends up enhancing company profitability depends mainly on whether:

• A) many buyers view the product's differentiating features as having value.
• B) most buyers have similar needs and use the product in the same ways.
• C) most buyers accept the customer value proposition as unique and the product can command a higher price or produce sufficiently bigger unit sales to cover the added costs of achieving the differentiation.
• D) buyer switching costs are low and customer loyalty to any one brand is low.
• E) buyers are prone to shop the market for sellers having the best price.

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Definitions:

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