A Differentiation Strategy Carries a Risk with It,in That a Firm

question 74

True/False

A differentiation strategy carries a risk with it,in that a firm may not adequately segment the market and properly target those special needs.

Calculate gross margin and distinguish it from contribution margin.

Apply the concept of relevant range in cost analysis.

Understand how to calculate and analyze gross margin.

Understand how to calculate and analyze net operating income.

---

Definitions:

American Express

A multinational financial services corporation known for its credit card, charge card, and traveler's check businesses.

Utility

The total satisfaction or benefit received from consuming a good or service.

Place Utility

The value added to products by having them available at the location where they are needed or desired by consumers.

Boarding Pass

A document provided by an airline during check-in, granting a passenger permission to enter the secure area of an airport and board a specific flight.