A Broad Differentiation Strategy Works Best in Situations Where

question 25

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 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) technological change is fast-paced and competition revolves around rapidly evolving product features.

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Definitions:

Interest Rates

The cost of borrowing money, expressed as a percentage, which lenders charge borrowers for using their money for a period of time.

Price Ceiling

A government-imposed limit on how high a price is charged for a product, meant to protect consumers from conditions that could make commodities prohibitively expensive.

Shortage

A market condition where the demand for a product exceeds its supply at a particular price.

Surplus

is a situation in which the quantity of a good or service available exceeds the quantity demanded at the current price.