Product Differentiation Refers to

question 220

Multiple Choice

Product differentiation refers to

• A) a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs.
• B) the unique combination of product benefits received by targeted buyers.
• C) those characteristics of a product that make it superior to competitive substitutes.
• D) the legal requirement that requires a specified degree of distinction between products to ensure an organization's intellectual property rights.
• E) a marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products.

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Definitions:

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, used to analyze labor cost efficiencies or inefficiencies during production.

Standard Costs

Predetermined or budgeted costs serving as benchmarks for measuring performance, commonly used for budgeting and variance analysis.

Actual Costs

The real costs incurred in the production of goods or in the provision of services.

Direct Labor Variance

The discrepancy between the expected (budgeted) cost of direct labor and the actual cost incurred during a production period.