In Which of the Following Situations Does a Differentiation Strategy

question 43

Multiple Choice

In which of the following situations does a differentiation strategy make the most sense?

• A) The industry is fragmented into different customer groups, each of which has different needs.
• B) Customer needs are primarily satisfied by the price of the product.
• C) There is a lot of technological change.
• D) There are low barriers to entry and exit.
• E) The industry is in the maturity stage of the life cycle.

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Definitions:

Rail

A mode of land transport involving trains traveling on tracks, typically used for carrying goods and passengers.

Yellow Dog Contract

An employment agreement where the worker promises not to join a labor union during the term of employment, now illegal in many jurisdictions.

Union Workers

Employees who are members of a labor union, which represents their interests in negotiations with employers.

Employers

Individuals or organizations that hire and pay people to work for them, typically controlling the terms of employment.