A Pitfall to Avoid in Pursuing a Differentiation Strategy Is

question 56

Multiple Choice

A pitfall to avoid in pursuing a differentiation strategy is

• A)charging a premium price for the differentiating features.
• B)spending on activities to differentiate the company's product to enhance profitability.
• C)meeting and exceeding the meaningful gaps in quality,performance,service,and other attractive differentiating attributes offered by rivals.
• D)choosing a product offering that supports buyers' indifference to rival brands' offerings.
• E)trying to differentiate on the basis of attributes or features that are easily copied.

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Definitions:

Project

A project is a temporary endeavor designed to produce a unique product, service, or result with a defined beginning and end, often constrained by funding or deliverables.

Erosion Costs

Costs that occur when a new project leads to a decline in revenues or increase in expenses of existing products or services.

Salvage Value

The calculated remaining value of an asset after it has served its anticipated lifetime.

Opportunity Costs

Missing out on possible advantages from various alternatives upon deciding on one.