Broad Differentiation Strategies Generally Work Best in Market Circumstances Where

question 35

Multiple Choice

Broad differentiation strategies generally work best in market circumstances where

• A) buyer needs and preferences are too diverse to be fully satisfied by a standardized product.
• B) most buyers have similar needs and use the product in the same ways.
• C) the products of rivals are weakly differentiated and most competitors are resorting to clever advertising to try to set their product offerings apart.
• D) buyers are price sensitive and buying switching costs are quite low.
• E) the five competitive forces are strong.

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Definitions:

Variable Costs

Expenses that vary directly with the level of production or output, such as raw materials and direct labor.

Fixed Manufacturing Overhead

Fixed costs that are related to the manufacturing process, including factory rent, equipment depreciation, and salary of factory supervisors.

Financial Advantage

The benefit or edge gained in financial terms, often through investment, cost-saving strategies, or superior financial planning.

Constrained Resource

A resource in limited supply that restricts a company's ability to meet production demands or goals.