Which of the Following Is Not a Potential Pitfall of a Differentiation

question 76

Multiple Choice

Which of the following is not a potential pitfall of a differentiation strategy?

• A) Uniqueness that is not valuable.
• B) All rivals share a common input or raw material.
• C) The price premium is too high.
• D) Perceptions of differentiation may vary between buyers and sellers.

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Definitions:

Operating Activities

Business activities that relate directly to the production, sale, and delivery of a company's products or services.

Financing Activities

Transactions and events related to raising capital, repaying investors, issuing dividends, and loans that affect a company's capital structure and equity.

Net Cash

The difference between a company's total cash inflows and outflows in a given period.

Operating Activities

Activities directly related to the day-to-day operations of a business, such as selling products and services, which generate most of its revenue and cash flows.