A Differentiation-Based Competitive Advantage

question 29

Multiple Choice

A differentiation-based competitive advantage:

• A) nearly always is attached to the quality and service aspects of a company's product offering.
• B) most usually is the result of highly effective marketing and advertising to enhance the brand,raise awareness,and build consistent customer experience.
• C) requires developing at least one distinctive competence that buyers consider valuable.
• D) hinges on a company's success in developing top-of-the-line product features that will command the highest price premium in the industry.
• E) often hinges on incorporating features that raise the performance of the product or lower the buyer's overall costs of using the company's product,or enhances buyer satisfaction in intangible or non-economic ways,or delivers value to customers by differentiating on the basis of competencies and capabilities that rivals can't match.

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Definitions:

Equilibrium Level

Equilibrium level refers to the state in an economy or market where supply equals demand, so there is no tendency for change.

Disposable Income

Available financial assets to households for investments and outlays after income taxes have been applied.

Government Spending

Expenditures by government bodies on goods and services, including salaries, infrastructure, and welfare programs.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.