For a Differentiation Strategy to Be Considered Successful

question 11

Multiple Choice

For a differentiation strategy to be considered successful:

• A)The organization that is pursuing the differentiation must be highly innovative
• B)Customers must be willing to pay more for the uniqueness of a product or service than the firm paid to create that uniqueness
• C)Loss of sales cannot reduce the benefits from economies of scale
• D)The organization must invest heavily in differentiating its products
• E)The organization that is pursuing differentiation must charge approximately the same price as its competitors but make a higher profit

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Definitions:

Resulting Events

Outcomes or occurrences that follow from specific actions or conditions.

Associative Learning

The process of learning in which a connection between two stimuli or between a stimulus and a response is learned.

Continuous Reinforcement

A learning process in which a behavior is reinforced every time it occurs, leading to faster acquisition of the behavior.

Respondent Behavior

A type of reaction to stimuli that is automatic or reflexive, such as salivating when smelling food.