A Company Attempting to Be Successful with a Broad Differentiation

question 38

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) have a widely known and highly respected brand name image.
• E) provide a top-of-the-line product and sell it at premium prices.

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Definitions:

Deductibles

In insurance, the amount that the insured must pay out-of-pocket before the insurance company pays its share of the expenses.

Health Insurance

A form of insurance coverage that pays for medical and surgical expenses incurred by the insured, often provided by employers or purchased individually.

Adverse Selection

A situation where asymmetry of information results in high-risk individuals being more likely to participate in an agreement or market, leading to an inefficient outcome.