Differentiation Focus Strategy Refers to One of Porter's Generic Business

question 147

Multiple Choice

Differentiation focus strategy refers to one of Porter's generic business strategies that

• A)involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of markets segments.
• B)focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments.
• C)requires products to have significant points of difference to target one or only a few market segments.
• D)requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments.
• E)seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.

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Definitions:

Demand Price

The price of a given quantity at which consumers will demand that quantity.

Perfectly Inelastic

A market situation where the quantity demanded or supplied does not change in response to a change in price.

Deadweight Loss

The inefficiency caused in a market where all potential gains from trade are not realized due to factors like taxes or subsidies.

Per-Unit Tax

A tax imposed on a product on a per unit basis, raising the cost of production or sale for that product.