An Organization That Is Using the Product Differentiation Approach Would

question 108

Multiple Choice

An organization that is using the product differentiation approach would

• A)focus on tight cost control.
• B)carefully cultivate its brands.
• C)provide products that are similar to competitors.
• D)invest more in productivity enhancements than R&D.
• E)recognize that demand is more price sensitive than if using a cost leadership approach.

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Definitions:

Price Elasticity

The responsiveness of the quantity demanded of a good or service to a change in its price.

Demand

The volume of goods or services that consumers can and want to buy across a range of prices within a certain period.

Price Elasticity

A metric indicating the responsiveness of the quantity of a good demanded to its price change, presented in percentage terms.

Demand

In economics, the desire and ability of consumers to purchase goods and services at given prices.