A Company Attempting to Be Successful with a Broad Differentiation

question 104

Multiple Choice

A company attempting to be successful with a broad differentiation strategy has to

• A)study buyer needs and behavior carefully to learn what buyers consider important, what they think has value, and what they are willing to pay for.
• B)incorporate more differentiating features into its product/service than rivals.
• C)concentrate its differentiating efforts on marketing and advertising (where almost all differentiating features are created).
• D)over-differentiate so that product quality, features, or service levels exceed the needs of most buyers.
• E)concentrate on offering advanced features, whether or not they have value to the customers, to create unique products.

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Definitions:

Systematic Risk

The inherent risk of exposure to market changes that cannot be diversified away, affecting all securities in a similar manner.

Portfolio Beta

An evaluation of a portfolio's systemic risk in relation to the entire market's volatility.

Systematic Risk

The danger that applies to the whole market or a section of the market, which cannot be mitigated by diversifying investments.