In Order to Create a Differentiated or Lowest Cost Position

question 98

Multiple Choice

In order to create a differentiated or lowest cost position, a firm needs to understand which of the following?

• A)What customers value
• B)Sources of competitive advantage
• C)Industry trends
• D)All of the above

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Definitions:

Accordion Concerts

Live musical performances featuring the accordion, a portable keyboard instrument with bellows and sometimes buttons or keys.

Market Segmentation

The process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers based on some type of shared characteristics.

Marginal Cost

The cost of producing one additional unit of a good or service, calculated by the change in total cost that arises from an extra unit of output.

Demand

The measure of a good or service that people intend and are able to acquire at differing prices throughout a designated time span.