A Differentiation Strategy Works Best When a

question 96

Multiple Choice

A differentiation strategy works best when a

• A) firm has tangible resources, its focus of competition shifts to price, and equivalent substitutes are readily available.
• B) firm's focus of competition shifts to price, and when increasing differentiation of product features do not create additional value.
• C) firm's differentiated products are commoditized, and costs of providing uniqueness do not rise above the customer's willingness to pay.
• D) firm has intangible resources, is able to pass on increases in supplier cost to the customer, and its differentiation appeal creates customer loyalty.

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Definitions:

Gross Pay

The total amount of an employee's earnings before any deductions are made for taxes, benefits, and other payroll deductions.

Voluntary Deductions

Deductions from an employee's paycheck that are made with the employee's consent, such as for benefits, union dues, or retirement plans.

Interest-Bearing Note

A debt security that pays interest to the holder until it matures, at which point the principal is reimbursed.

Discounting

The process of determining the present value of a payment or a stream of payments that is to be received in the future.