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:

Pie Chart

A circular graph that shows how some total is divided among its components, usually expressed in percentages.

Relative Shares

The proportion of total income or wealth held by different groups within a society, often used to analyze income or wealth distribution.

Time-Series Graph

A graphical representation showing how a variable or set of variables changes over time, tracking trends and patterns in the data.

Unemployment Rate

The percentage of the labor force that is jobless, actively seeking employment, and available to work.