Which of the Following Is True Regarding the Differentiation Strategy

question 77

Multiple Choice

Which of the following is true regarding the differentiation strategy?

• A)The differentiation strategy cannot protect a company from price sensitivity.
• B)Brand images play a negligible role in differentiation strategies.
• C)Companies using the differentiation strategy have to build large-scale facilities.
• D)Companies have to control their overhead costs to use the differentiation strategy.
• E)Companies achieve above-average returns if they succeed in their differentiation strategy.

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Definitions:

Informational Social Influence

The process of changing one's behavior or beliefs in response to perceived expertise or knowledge of others.

Conformity Pressures

Social forces that compel individuals to align their attitudes, beliefs, or behaviors with those of a group.

Personal Control

An individual's belief in their ability to influence events and their outcomes, often associated with psychological well-being.

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting beliefs, values, or attitudes, prompting an individual to seek consistency.