A Low-Cost Provider Strategy Can Defeat a Differentiation Strategy

question 2

Multiple Choice

A low-cost provider strategy can defeat a differentiation strategy

• A)when a company can offset thinner profit margins per unit by selling sufficient additional units to increase total profits.
• B)when there are few ways to differentiate a product or a service and many buyers perceive these differences as valuable.
• C)when customers are basically satisfied and do not think extra attributes are worth a higher price feature.
• D)when there are many ways to differentiate the product or service and many buyers perceive these differences as having value.
• E)when technological change is fast-paced and competition revolves around rapidly evolving product features.

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Definitions:

FTSE 100 Futures

Financial contracts to buy or sell the FTSE 100 stock index at a predetermined future date and price, used for hedging or speculation on the direction of the UK stock market.

British Pound

The currency of the United Kingdom, commonly used within its borders and globally in financial transactions.

Currency

A system of money in general use in a particular country or region.

S&P E-Mini Futures

Financial contracts that represent a portion of the standard S&P futures contracts, making them accessible to more investors due to their smaller size.