A Differentiation-Based Competitive Advantage

question 16

Multiple Choice

A differentiation-based competitive advantage

• A) nearly always is attached to the quality and service aspects of a company's product offering.
• B) most usually is the result of highly effective marketing and advertising campaigns designed to build awareness and recognition of the product or service offering.
• C) requires developing at least one distinctive competence that buyers consider valuable.
• D) hinges on a company's success in developing top-of-the-line product features that will command the biggest price premium in the industry.
• E) often hinges on incorporating features that (1)raise the performance of the product or (2)lower the buyer's overall costs of using the company's product or (3)enhance buyer satisfaction in intangible or noneconomic ways or (4)deliver value to customers by exploiting competitive capabilities that rivals can't match.

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Definitions:

Past Demand

Historical data regarding the quantity of goods or services that were sought after by consumers in previous periods.

Qualitative Approach

A research strategy focusing on understanding the quality, nature, or characteristics of phenomena rather than quantifying them with numbers.

Random Fluctuations

The unpredictable changes in variables or systems over time, which can be due to a variety of uncontrolled or random factors.

Seasonal Fluctuations

Variations in demand, supply, or other economic factors that regularly occur at specific times of the year due to changes in season.