Whether a Broad Differentiation Strategy Ends Up Enhancing Company Profitability

question 34

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) the extra price the product commands exceeds 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:

Hypochondriasis

An anxiety disorder characterized by excessive preoccupation with the belief of having a serious, undiagnosed medical illness.

Blindness

The condition of lacking visual perception due to physiological or neurological factors.

Self-Concept

An individual's perception of themselves, encompassing beliefs, feelings, and perceptions about one's abilities, characteristics, and values.

Significant Other

A person with whom someone has an important, intimate relationship that deeply influences their life.