The Pitfalls of a Differentiation Strategy Include

question 1

Multiple Choice

The pitfalls of a differentiation strategy include

• A) trying to differentiate on the basis of attributes or features that are easily copied.
• B) choosing to differentiate on the basis of attributes that buyers do not perceive as valuable or worth paying for.
• C) trying to charge too high a price premium for the differentiating features.
• D) being timid and not striving to open up meaningful gaps in quality,service,or performance features relative to the products of rivals.
• E) All of these choices are correct.

Understand the degree of operating leverage and its use in measuring the sensitivity of operating income to changes in sales volume.

Interpret and analyze financial information to make informed business decisions related to sales, costs, and profit.

Understand the principles and applications of the percentage-of-completion method and completed contract method in revenue recognition.

Recognize the role of payments, including interest and progress payments, in the accounting for installment sales and construction contracts.

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Definitions:

Creative Productivity

The capacity to generate original and valuable outcomes in artistic, scientific, or intellectual domains.

Novelist

An author or writer of novels, which are extended works of fiction.

Physicist

A scientist who specializes in the study of matter, energy, and the interaction between them.

Fluid Abilities

Mental skills that involve the ability to reason quickly and think abstractly, which tend to decline with age.