A Firm with a Competitive Advantage Based on Differentiation Markets

question 111

Multiple Choice

A firm with a competitive advantage based on differentiation markets unique products for which customers are willing to pay a premium price. The attributes of the products are discernibly higher than competitors' and include all but which of the following?

• A) availability
• B) quality
• C) reliability
• D) prestige

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Definitions:

Representativeness Heuristic

A cognitive short-cut in which instances are assigned to categories or types on the basis of overall similarity or resemblance to the category.

Induced Compliance

A special case of cognitive dissonance: inconsistency is experienced when a person is persuaded to behave in a way that is contrary to an attitude.

Cognitive Dissonance

The psychological discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Inoculation

A way of making people resistant to persuasion. By providing them with a diluted counter-argument, they can build up effective refutations to a later, stronger argument.