A Competitive Advantage Has Been Established When

question 4

Multiple Choice

A competitive advantage has been established when

• A) customers see the variation as important and the value added to the customer exceeds the cost of providing differentiation.
• B) a high-cost strategy increases customer value by minimizing customer sacrifices.
• C) a low-profit item is dropped from the product line.
• D) both a and b.

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Definitions:

VALS Framework

A tool used in psychographic segmentation that classifies consumers into eight distinct types based on their responses to a questionnaire, focusing on values, attitudes, and lifestyle.

Geodemographic Segmentation

A market research technique that categorizes consumers based on geographic location and demographic information.

Demographic

Pertains to specific characteristics of populations, such as age, gender, income level, and education, which are used for marketing and social research.

Benefit Basis

The underlying advantages or favorable aspects upon which decisions or actions are based.