A Differentiation-Based Competitive Advantage

question 60

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)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 noneconomic 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:

Low-risk

Refers to investments or financial strategies that carry a minimal possibility of losing value.

Installment Loan

A loan that is repaid over time with a set number of scheduled payments; typically two payments or more.

Nominal Rate

The nominal rate is the interest rate stated on a loan or financial product, not accounting for inflation or other factors that affect purchasing power.

Repayment Of Principal

The process of paying back the original amount borrowed in a loan, separate from interest payments.