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:

Bankruptcy Trustee

An individual or corporation appointed in a bankruptcy case to represent the interests of the bankruptcy estate and the creditors.

Debtor's Property

refers to all tangible or intangible assets owned by an individual or entity who owes money to another party.

Fraudulent Transfers

Transactions made with the intention of evading creditors by moving assets out of their reach.

Bankruptcy Trustee

An individual appointed by a bankruptcy court to oversee and administer a debtor's estate during the bankruptcy process.