A Broad Differentiation Strategy Works Best in Situations Where

question 57

Multiple Choice

A broad differentiation strategy works best in situations where

• A) technological change is slow-paced and new or improved products are infrequent.
• B) buyer needs and uses of the product or service are very similar.
• C) buyers incur low costs in switching their purchases to rival brands.
• D) buyers have a low degree of bargaining power and purchase the product frequently.
• E) buyers needs and uses of the product or service are diverse.

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Definitions:

DPS

Stands for Dividends Per Share, indicating the total dividends paid out by a company per share of its stock.

EPS

A financial ratio indicating how much money a company makes for each share of its stock, also known as earnings per share.

EBIT

A financial metric used to evaluate a company's operating performance by calculating its profit without the effects of financing and tax expenses.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure used to analyze and compare profitability between companies and industries.